Home / Business and Economy / Amazon Beats Q2 Earnings, But Guidance Misses Expectations
Amazon Beats Q2 Earnings, But Guidance Misses Expectations
1 Aug
Summary
- Amazon reports strong Q2 results, beating revenue and earnings estimates
- AWS revenue growth slows compared to rivals, disappointing investors
- Amazon increases full-year capex to $117B to support cloud and logistics
On August 1st, 2025, Amazon reported its second-quarter financial results, which exceeded market expectations on both the top and bottom lines. The e-commerce giant's revenue increased 13% year-over-year to $167.7 billion, beating the consensus estimate of $162.09 billion. Earnings per share based on generally accepted accounting principles (GAAP) rose to $1.68, up from $1.26 in the same period last year and surpassing the $1.33 estimate.
Despite the strong quarterly performance, Amazon's guidance for the third quarter fell short of analysts' projections. The company expects net sales to increase 10% to 13% year-over-year to $174 billion to $179.5 billion, which is above the consensus estimate of $173.27 billion. However, third-quarter operating income is expected to land between $15.5 billion and $20.5 billion, missing the Street consensus estimate of $19.5 billion.
One area of concern for investors was the revenue growth of Amazon Web Services (AWS), the company's cloud computing division. AWS revenue increased 17.5% year-over-year to $30.87 billion, a slight beat of about $91 million versus the consensus estimate. However, this growth rate was slower than the 16.9% rate in the first quarter and lagged the performance of rivals Microsoft Azure and Google Cloud.
