Company file · AMZN
Amazon
AWS is 18% of Amazon's sales but 57% of its operating income
In 2025, Amazon Web Services brought in $128.7B of Amazon's $716.9B in net sales and $45.6B in segment operating income. The North America and International segments earned $29.6B and $4.8B on much larger sales.
Key facts
Amazon (Nasdaq: AMZN) reported net sales of $716.9B for fiscal 2025, the year ended Dec 31, 2025, up 12.4% from fiscal 2024. Net income was $77.7B, up 31.1%. In its latest 10-Q, for the quarter ended Jun 30, 2026, net sales were $200.6B, up 19.6% from the same quarter a year earlier, and net income was $62.6B. The largest piece by type of sale was Online stores, at 38% of fiscal 2025 net sales. Sources: 10-K for fiscal 2025 (filed Feb 6, 2026) and 10-Q for the quarter ended Jun 30, 2026 (filed Jul 31, 2026).
Source: 10-K FY2025, filed Feb 6, 2026
How it makes money
Online stores were the biggest line at 38% of 2025 net sales, then third-party seller services at 24%. AWS was 18% of net sales but $45.6B, or 57%, of segment operating income.
Source: 10-K FY2025
By segment, FY2025
Share is of the FY2025 total; the last column is the change from FY2024.
Operating income by segment, FY2025
Negative values are operating losses. Last column: change from FY2024 where both years are profits.
What changed last quarter
Source: 10-Q, quarter ended Jun 30, 2026, filed Jul 31, 2026
The bull case and the bear case
The bull case
- Advertising revenue grew 22.1% in 2025 to $68.6B. 10-K, FY2025
- AWS sales were $42.2B in the quarter ended Jun 30, 2026, up 36.8% from a year earlier. 10-Q, quarter ended Jun 30, 2026
- Operating cash flow rose 20.4% in 2025 to $139.5B. 10-K, FY2025
- International segment operating income rose 25.3% in 2025 to $4.8B. 10-K, FY2025
The bear case
- Total debt went from $68.4B at the end of 2025 to $132.2B at Jun 30, 2026. 10-Q, quarter ended Jun 30, 2026
- International produced 23% of 2025 net sales but 6% of segment operating income. 10-K, FY2025
- Online stores, the largest line, grew 9.0% in 2025, slower than the 12.4% rise in net sales overall. 10-K, FY2025
- The 10-K lists intense competition, the cost of fulfillment and data-center capacity, and government regulation among its risks. 10-K, Item 1A
What optimists and skeptics tend to point to, each tied to a filing. Ticker Sage doesn't pick a side, and neither list is a reason to buy or sell.
What the company does
Amazon runs online and physical stores, a marketplace for third-party sellers, the AWS cloud computing business, an advertising business and subscriptions such as Prime.
Amazon sells goods directly in its online and physical stores, charges third-party sellers for using its marketplace and fulfillment network, sells cloud computing through Amazon Web Services (AWS), sells advertising, and charges for subscriptions such as Prime.
It reports three segments: North America, International and AWS. Its fiscal year is the calendar year.
Source: 10-K, Item 1 Business
Main risks the company lists
Our plain-English paraphrase of the risk factors in Amazon's latest 10-K. Read the original for the full list.
- CompetitionIts businesses face intense competition, and rivals may have more resources or adapt faster.
- New businesses and countriesExpanding into new products, services, technologies and places brings risks and may not work out.
- InternationalOperating abroad exposes it to local rules, political and economic instability and currency swings.
- CapacityBuilding too much or too little warehouse and data-center capacity, or trouble running it, could hurt results.
- Security and outagesCyberattacks, system interruptions and data loss could harm customers and its reputation.
- Suppliers and sellersIt relies on suppliers, third-party sellers and other partners, and carries inventory risk.
- Law, lawsuits and taxesIt faces wide-ranging and changing regulation, lawsuits and investigations, and new taxes or tax rulings.
Source: 10-K, Item 1A Risk Factors (the full list, in the company's words)
Three years of key numbers
Every number links to its filing; hover for the XBRL tag. A dash means the number isn't cleanly available, and we don't estimate it.
| US$ | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Net sales | $574.8B | $638.0B | $716.9B |
| Net income | $30.4B | $59.2B | $77.7B |
| Operating cash flow | $84.9B | $115.9B | $139.5B |
| Cash & equivalents (year end) | $73.4B | $78.8B | $86.8B |
| Total debt (year end) | $66.8B | $57.6B | $68.4B |
| Diluted shares | 10.49B | 10.72B | 10.83B |
- Net sales: Total net sales of products and services.
- Net income: Profit after all costs and taxes.
- Operating cash flow: Cash the business brought in from its day-to-day operations during the year (cash flow statement).
- Cash & equivalents: Cash and short-term investments that count as cash equivalents on the balance sheet. Excludes longer-dated marketable securities.
- Total debt: Current plus non-current portions of long-term debt, at carrying value.
- Diluted shares: Weighted average shares outstanding for the year, including the effect of options and stock awards.
About these numbers
- AWS's share of operating income is AWS segment operating income divided by the three segments' combined operating income, as reported in the 10-K.
- Amazon's 10-Qs also report trailing-twelve-month figures. Annual numbers here come only from 10-Ks, so those aren't mixed in.
- Net income in the quarter ended Jun 30, 2026 was $62.6B, which includes $53.4B of non-operating income (the line where gains and losses on investments are recorded), against $1.7B a year earlier.
Recent filings
Latest filings
- Oct 54:08 PM ET
Form 4
Amazon CEO Worldwide Amazon Stores Douglas J. Herrington reports selling 1,000 shares under a 10b5-1 plan
The filing reports 1,000 shares in an open-market or private sale (code S) at $251.50, about $251,500 in total.
Common questions about Amazon
How does Amazon make money?
Amazon's net sales were $716.9B in fiscal 2025. Online stores were the biggest line at 38% of 2025 net sales, then third-party seller services at 24%. AWS was 18% of net sales but $45.6B, or 57%, of segment operating income. Source: 10-K for fiscal 2025, filed Feb 6, 2026.
What was Amazon's revenue in fiscal 2025?
$716.9B of net sales for the fiscal year ended Dec 31, 2025, up 12.4% from $638.0B in fiscal 2024. Fiscal 2023 was $574.8B. Source: 10-K for fiscal 2025, filed Feb 6, 2026.
Is Amazon profitable?
Amazon reported net income of $77.7B for fiscal 2025, up 31.1% from $59.2B in fiscal 2024. That is a profit under US accounting rules (GAAP). In the quarter ended Jun 30, 2026, net income was $62.6B. The page's About these numbers section explains what is included. Source: 10-K for fiscal 2025, filed Feb 6, 2026.
What did Amazon report in its latest quarterly filing?
Net sales were $200.6B in the quarter ended Jun 30, 2026, up 19.6% from $167.7B a year earlier. Net income was $62.6B, up 244.9% from $18.2B. Source: 10-Q for the quarter ended Jun 30, 2026, filed Jul 31, 2026.
How much cash and debt does Amazon have?
Amazon had $78.2B in cash and cash equivalents and $132.2B of total debt on Jun 30, 2026. Total debt here is current plus non-current portions of long-term debt, at carrying value. Source: 10-Q filed Jul 31, 2026.
What are the main risks Amazon lists?
Amazon's 10-K for fiscal 2025, filed Feb 6, 2026, lists its risk factors in Item 1A. We group them into 7 areas: Competition; new businesses and countries; international; capacity; security and outages; suppliers and sellers; law, lawsuits and taxes. The first: Its businesses face intense competition, and rivals may have more resources or adapt faster. Source: 10-K, Item 1A Risk Factors.
Where do these Amazon numbers come from?
From Amazon's own SEC filings: the 10-K for fiscal 2025 (filed Feb 6, 2026) and the 10-Q for the quarter ended Jun 30, 2026 (filed Jul 31, 2026), read through the SEC's public XBRL data. Each number on this page links to its filing. Methodology explains how fiscal years and missing numbers are handled.
Disclosures
- Editor holdings in AMZN
- The editor holds no position in Amazon (AMZN). As of Oct 25, 2026.
- Trading rule
- The editor does not buy or sell AMZN from 3 days before to 3 days after this page is published or substantively updated.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- The company's SEC filings, linked next to each number.
- Last updated
- Oct 25, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold AMZN, and it doesn't consider your situation.
Compare with peers
| Company | Fiscal year | Revenue | Revenue growth | Net income |
|---|---|---|---|---|
| AmazonAMZN | FY2025 | $716.9B | +12.4% | $77.7B |
| WalmartWMT | FY2026 | $713.2B | +4.7% | $21.9B |
| CostcoCOST | FY2026 | $303.2B | +10.1% | $9.2B |
| MicrosoftMSFT | FY2026 | $331.8B | +17.8% | $133.7B |
Each row is that company’s latest fiscal year from its own 10-K, using its own revenue and net income lines. Fiscal years end in different months, and line definitions differ (banks, insurers and oil companies count revenue differently), so this is a rough side-by-side, not a like-for-like comparison.
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New to filings? Learn lists the first explainer topics. Methodology & Disclosures covers where every number comes from.