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On July 31, 2025, Amazon released second quarter results. Sales were in line with expectations, with quarterly revenue up 13.3% to 168 billion dollars. This is higher than the 2024 pace of rising by 10%.
Like competitors, Amazon is striving to reduce costs while increasing investment and integrating AI. Over the period, the group spent 31.4 billion dollars on investments, exceeding analysts’ forecasts of 26.4 billion dollars.
In total, Amazon increased net margin by a third (up by 35% to 18.16 billion dollars ) compared to the previous year. This represents a net margin ratio of 10.8% of quarterly revenue (up 1.7 point in a year). By way of comparison, this ratio was 9.3% in 2024 and 5.3% in 2023. Operating income increased by 30% year-on-year. The operating margin rose from 9.9% a year ago to 11.4% at the end of June 2025.
Direct e-commerce (excluding the marketplace), Amazon’s historic core business, still accounts for the largest share of revenue but continues to decline over 4 years, falling from 47% to 36.7% of total business, down more than 10 points. AWS’s growth was considered too weak compared to that of Google and Microsoft by investors closely monitoring cloud computing capabilities in order to detect the first signs of a return on investment. At 15.69 billion dollars , advertising accelerated with 23% growth, accounting for 9% of Amazon’s revenue.
