Amazon has reported solid financial results in the second quarter, with total revenues reaching $167.7 billion, up 13% compared to the same period last year. The performance would have been 12% excluding the effects of currency fluctuations, which contributed about $1.5 billion.
The North American domestic market showed 11% growth, with $100.1 billion in revenue. International operations shone with a 16% increase to $36.8 billion, or 11% when excluding currency effects. Amazon Web Services confirmed its role as a growth driver with a 17.5% increase, bringing cloud revenues to $30.9 billion.
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On the profitability front, Amazon demonstrated a strong ability to generate operating profits, rising to $19.2 billion from $14.7 billion in the previous quarter. Particularly impressive was the performance of the international business, which quintupled its operating profitability from $0.3 billion to $1.5 billion. North America contributed $7.5 billion in operating profit. AWS remained solid with $10.2 billion, up from $9.3 billion last year.
Net income reached $18.2 billion, or $1.68 per share, exceeding the $13.5 billion and $1.26 per share of Q2 2024. Operating cash flow remained robust at $121.1 billion over the past twelve months, up 12%. However, free cash flow fell sharply to $18.2 billion from $53.0 billion in the previous period. This likely reflects higher capital investments to support future growth.
Amazon continues to talk about artificial intelligence
Presenting the quarterly data, CEO Andy Jassy emphasized how Amazon’s strategic vision for AI is becoming a concrete reality, with tangible impacts on every aspect of the company’s ecosystem. The distribution of Alexa+ has already reached millions of users. The smart shopping agent is regularly used by a large customer base. In any case, the widespread adoption of the company’s AI solutions is clear, according to the top executive.
On the operational side, Amazon has introduced DeepFleet, a system of AI models that optimizes routes and increases the productivity of its fleet of over one million robots. This innovation marks a qualitative leap in logistics automation and warehouse management.
For the developer community, the company has launched Kiro, a next-generation integrated development environment that uses AI to significantly simplify coding. In parallel, Strands facilitates the creation of intelligent agents. Lastly, Bedrock AgentCore provides a secure and scalable platform for managing these agents.
According to Jassy, these AI advancements are delivering cross-functional benefits in terms of:
- improved user experience
- faster innovation cycles
- optimized operational efficiency
- business growth.
The president concluded by expressing enthusiasm about future prospects and suggested that these developments are just the beginning of a broader transformation.
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Amazon e-commerce business growth
Amazon stated it has strengthened its e-commerce leadership, reporting the biggest Prime Day ever, which allowed customers to save billions while independent sellers hit sales records. The company also announced an ambitious expansion of fast delivery, which will reach tens of millions of U.S. customers in over 4,000 locations by the end of 2025, extending the service even to smaller rural communities.
Catalog expansion and strategic partnerships
The platform has significantly enriched its offering by welcoming prestigious brands such as Away, Aveda, Marc Jacobs Fragrances, Milk Makeup, and Origins. Particularly noteworthy is the opening of a dedicated Nike store on Amazon.com, offering U.S. consumers a wide selection of the brand’s shoes, clothing, and accessories.
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Shopping experience innovations
Amazon has introduced generative AI tools to revolutionize the online shopping experience. Highlights include a feature that allows users to listen to product highlights, converting reviews and summaries into audio content, and an ad improvement tool that keeps listings automatically updated and engaging.
Alexa and AI ecosystem evolution
Early access to Alexa+ has reached millions of users, marking a significant step in the evolution of the voice assistant. At the same time, Amazon Nova introduced a comprehensive suite of personalization features, including:
- Nova Act for simplified creation of automated agents
- Expanded voice capabilities of Nova Sonic to Spanish, French, Italian, and German
Prime Video expansion and content
Prime Video has strengthened its sports sector presence with a top-tier NBA team featuring personalities like:
- Stan Van Gundy
- Kevin Harlan
- Dwyane Wade
- Steve Nash
Coverage of the NASCAR Cup Series attracted around 2 million viewers per race, making it the youngest audience among NASCAR broadcasters in the last ten years.
In the film space, Amazon announced Denis Villeneuve as director of the next James Bond movie, confirming the company’s ambition in premium entertainment. The integration with Roku is a strategic move, offering advertisers access to the largest authenticated Connected TV network in the U.S., reaching about 80 million households.
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AWS and cloud computing innovations
As partly anticipated, AWS launched Kiro, a revolutionary integrated development environment that transforms software creation through spec-driven development and developer-optimized interfaces. Bedrock AgentCore enables secure deployment of enterprise-scale AI agents. Strands Agents, meanwhile, provides an open-source tool to simplify the creation of new agents.
The company signed major deals with top firms including:
- PepsiCo
- Airbnb
- Peloton
- London Stock Exchange
International expansion includes the announcement of “AI Zones” in Saudi Arabia and South Korea, along with multi-billion dollar investments to boost cloud infrastructure in North Carolina, Pennsylvania, and Australia.
AWS introduced several technological innovations, from general availability of EC2 instances based on NVIDIA Grace Blackwell Superchips, to Oracle Database@AWS for simplified migrations. Amazon S3 Vectors promises up to 90% cost reductions for vector storage and AI operations.
Automation and robotics
Amazon unveiled DeepFleet, an AI model that coordinates over one million company robots, improving route efficiency by 10%. AI-based inventory management increased regional forecast accuracy by 20%. Vulcan is the first company robot to combine vision and touch to navigate complex environments.
Social responsibility and sustainability
The company involved over 700,000 employees in upskilling programs and launched new robotics and engineering apprenticeships for U.S. staff. During Volunteer Month, 134,000 employees across 55 countries supported more than 2,500 organizations. Amazon also extended aid to flood-affected Texas communities, donating over 68,000 essential goods. Water recycling expansion will reach over 120 AWS data centers in the U.S. by 2030.
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Q3 outlook
Amazon’s forecasts for the third quarter show a strong growth trajectory. Revenues are expected in the $174.0 to $179.5 billion range — a 10% to 13% increase over Q3 2024. Exchange rates are expected to contribute about 130 basis points positively.
On the operating profit side, expectations range from $15.5 to $20.5 billion — consistent with the $17.4 billion recorded in the same quarter last year. The wide range suggests a degree of caution from management, who clearly must consider economic and operational variables that could affect performance.
Management clarified that these projections assume ongoing operations and exclude:
- any significant acquisitions
- corporate restructuring processes
- extraordinary legal agreements that may arise during the period
The estimates thus confirm Amazon’s confidence in maintaining sustained growth, despite ongoing global macroeconomic challenges and uncertainties.
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