US' Amazon's Q3 net sales surge 13% to $180.2 bn as AI boosts growth

Region-wise, North America segment sales increased 11 per cent YoY to $106.3 billion. International segment sales increased 14 per cent YoY to $40.9 billion or increased 10 per cent excluding changes in foreign exchange rates.

The operating income was $17.4 billion in Q3. Third quarter 2025 operating income includes two special charges—$2.5 billion related to a legal settlement with the Federal Trade Commission and $1.8 billion in estimated severance costs primarily related to planned role eliminations. Without these charges, operating income would have been $21.7 billion.

The company reported a North America segment operating income of $4.8 billion, which would have been $7.3 billion excluding a $2.5 billion legal settlement charge with the Federal Trade Commission. Both North America and international results included estimated severance costs linked to planned role eliminations. The international segment posted an operating income of $1.2 billion, while net income rose to $21.2 billion, or $1.95 per diluted share, Amazon said in a press release.

The operating cash flow increased 16 per cent to $130.7 billion for the trailing twelve months, and free cash flow decreased to $14.8 billion for the trailing twelve months.

“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Andy Jassy, president and CEO, Amazon.

“We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity—adding more than 3.8 gigawatts in the past 12 months,” added Jassy. “In stores, we continue to realise the benefits of innovating in our fulfilment network, and we are on track to deliver to Prime members at the fastest speeds ever again this year, expand same-day delivery of perishable groceries to over 2,300 communities by end of year, and double the number of rural communities with access to Amazon’s same-day and next-day delivery.”

Amazon expanded same-day and next-day delivery by 60 per cent in rural areas and extended perishable-goods delivery to 1,000+ US locations (target 2,300+ by 2025). Rufus, its AI shopping assistant, was used by 250 million customers and boosted purchase rates by 60 per cent. ‘Help Me Decide’ and genAI tools for 1.3 million sellers enhanced listings and discovery. Multi-Channel Fulfilment was extended to Walmart, Shopify, and Shein, added the release.

For the fourth quarter (Q4) of 2025, Amazon expects net sales to be between $206 billion and $213 billion, or to grow between 10 per cent and 13 pert YoY. This guidance anticipates a favourable impact of approximately 190 basis points (bps) from foreign exchange rates. The operating income is expected to be between $21 billion and $26 billion.

ALCHEMPro News Desk (SG)