Amazon Q1 sales surge, but guidance concerns investors

Amazon.com’s financial results for the first quarter of 2025, showcased growth across its core business segments. Net sales increased by 9 percent year-over-year to 155.7 billion dollars, with North America contributing 92.9 billion dollars and international sales reaching 33.5 billion dollars.

Amazon Web Services (AWS) experienced a 17 percent revenue growth, totaling 29.3 billion dollars. Operating income rose to 18.4 billion dollars, while net income surged to 17.1 billion dollars, or 1.59 dollars per diluted share.

Despite these strong figures, Amazon's stock experienced a decline of over 2 percent in after-hours trading, influenced by cautious guidance for the second quarter. The company projected operating income between 13 billion dollars and 17.5 billion dollars, which fell short of analysts' expectations. Additionally, AWS's revenue slightly missed estimates, contributing to investor concerns.

On a call with analysts, Andy Jassy, president and CEO, Amazon addressed the challenges posed by new U.S. tariffs on Chinese imports, stating that while demand has not significantly slowed, the company is proactively managing potential impacts by encouraging sellers to shift inventory to the U.S. early and maintaining a focus on low retail prices.

Looking ahead, Amazon forecasts second quarter net sales to be between 159 billion and 164 billion dollars, to grow between 7 percent and 11 percent.