Amazon: we’re continuing to innovate at a rapid rate

Amazon.com, Inc. today announced financial results for its fourth quarter ended December 31, 2025. Net sales increased 14% to $213.4 billion in the fourth quarter, compared with $187.8 billion in fourth quarter 2024.

Fourth Quarter 2025

• North America segment sales increased 10% year-over-year to $127.1 billion.
  • International segment sales increased 17% year-over-year to $50.7 billion, or increased 11% excluding changes in foreign exchange rates.
• Operating income increased to $25.0 billion in the fourth quarter, compared with $21.2 billion in fourth quarter 2024. Fourth quarter 2025 operating income includes three special charges—$1.1 billion for the resolution of tax disputes associated with our stores business in Italy, and the settlement of a lawsuit, $730 million in estimated severance costs, and $610 million in asset impairments primarily related to physical stores. Without these charges, operating income would have been $27.4 billion.
  • North America segment operating income was $11.5 billion, compared with $9.3 billion in fourth quarter 2024.
  • International segment operating income was $1.0 billion, compared with $1.3 billion in fourth quarter 2024.
• Net income increased to $21.2 billion in the fourth quarter, or $1.95 per diluted share, compared with $20.0 billion, or $1.86 per diluted share, in fourth quarter 2024.

Full Year 2025

• Net sales increased 12% to $716.9 billion in 2025, compared with $638.0 billion in 2024. Excluding the $4.4 billion favorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 12% compared with 2024.
  • North America segment sales increased 10% year-over-year to $426.3 billion.
  • International segment sales increased 13% year-over-year to $161.9 billion, or increased 10% excluding changes in foreign exchange rates.
  • AWS segment sales increased 20% year-over-year to $128.7 billion.
• Operating income increased to $80.0 billion in 2025, compared with $68.6 billion in 2024.
  • North America segment operating income was $29.6 billion, compared with operating income of $25.0 billion in 2024.
  • International segment operating income was $4.7 billion, compared with an operating income of $3.8 billion in 2024.
  • AWS segment operating income was $45.6 billion, compared with operating income of $39.8 billion in 2024.
• Net income increased to $77.7 billion in 2025, or $7.17 per diluted share, compared with $59.2 billion, or $5.53 per diluted share, in 2024.
• Operating cash flow increased 20% to $139.5 billion for the trailing twelve months, compared with $115.9 billion for the trailing twelve months ended December 31, 2024.
• Free cash flow decreased to $11.2 billion for the trailing twelve months, driven primarily by a year-over-year increase of $50.7 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow of $38.2 billion for the trailing twelve months ended December 31, 2024.

“AWS growing 24% (our fastest growth in 13 quarters), Advertising growing 22%, Stores growing briskly across North America and International, our chips business growing triple digit percentages year-over-year—this growth is happening because we’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” said Andy Jassy, President and CEO, Amazon. “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital.”

Some other highlights:

• AgentCore Memory to help agents learn from experiences and improve decision-making, reducing processing time and the need for extensive custom instructions.

• Launched new agentic AI capabilities for Amazon Connect—an AI tool that enables contact centers to provide consistent, personalized customer experiences—including advanced speech models, agentic assistance, AI-powered recommendations, and AI agent observability. Connect is a $1 billion annualized revenue run rate business growing over 30%, and has an average of 20 million+ interactions happening on it each day.
• Introduced AWS AI Factories to transform customers’ existing data centers into high-performance AI environments, which accelerates AI buildouts by months or years compared to building independently.
• Delivered at fastest speeds ever for Prime members globally in 2025.
• Continued increasing speed for rural customers in the U.S., with the average number of monthly customers receiving same-day delivery in rural areas nearly doubling year-over-year.
• Delivered nearly 70% more items same day in the U.S. than the year before, with Same-Day Delivery used by nearly 100 million customers.
• Expanded Amazon Now ultra-fast delivery, which offers delivery on thousands of items in 30 minutes or less. Amazon Now is now available in various cities in India, Mexico, and the UAE, and is being tested in several communities in the U.S. and UK.
• Expanded Same-Day grocery delivery to 2,300+ cities and towns across the U.S., making fresh groceries more accessible and transforming how customers shop for food, with perishables making up 9 of the top 10 most-ordered items in areas where the service is available.
• Expanded Amazon Pharmacy Same-Day Delivery, with same-day delivery of prescriptions now available in 3,000+ U.S. cities and towns.

Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of February 5, 2026, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below.

First Quarter 2026 Guidance

• Net sales are expected to be between $173.5 billion and $178.5 billion, or to grow between 11% and 15% compared with first quarter 2025. This guidance anticipates a favorable impact of approximately 180 basis points from foreign exchange rates.
• Operating income is expected to be between $16.5 billion and $21.5 billion, compared with $18.4 billion in first quarter 2025. This guidance includes approximately $1 billion of higher year-over-year Amazon Leo costs as we scale in 2026, as well as investment in quick commerce and even sharper prices in our international stores business.
• This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.