![Featured image of the article [Amazon results] In Q3 2023, Amazon more than tripled net margin on the back of a savings plan and a return to fundamentals](https://www.mind.eu.com/wp-content/uploads/sites/6/2023/05/amazon.png)
While Amazon is being sued by the Federal Trade Commission (FTC) and 17 state prosecutors for accusations of monopolistic behavior, the group published Q3 results on October 26th, 2023. Quarterly sales totaled US$143.1 billion, up by 13% overall. Three business units in particular drove growth: online sales (1P and 3P), AWS and advertising. Revenue from advertising, which includes sponsored products, display and video advertising, jumped by 23% year-on-year, those from the digital marketplace by 19% and those from AWS by 13%. Online sales, the historic core of our business, were up 4% over the 3rd quarter.
This quarter highlights an improvement in profitability, critical to invest in generative AI, such as that in Anthropic. Amazon’s operating margin quadrupled year-on-year, reaching US$11.2 billion in Q3 2023. This represents 7.8% of total sales. Net margin more than tripled to US$9.9 billion (up by 244%). It reached 6.9% of sales versus 5% in the second quarter, so a gain of 1.9%.
