Amazon Q2 2025 Revenue Surges, AI Investment Grows

Amazon reported strong second-quarter 2025 results, with revenue up 13% year-over-year to $167.7 billion and adjusted earnings per share of $1.68, both surpassing Wall Street expectations. Amazon Web Services (AWS) revenue rose 17.5% to $30.9 billion, though profit margins were pressured by significant capital expenditures for AI investments. Advertising revenue grew over 22% to $15.7 billion, with third-party seller services and subscription revenues also seeing solid growth. Despite beating expectations on operating income, Amazon’s Q3 operating income guidance of $15.5–$20.5 billion was below analyst forecasts, causing a drop in share price after hours. CEO Andy Jassy pointed to strong AWS demand and a $195 billion backlog, as data center capacity strains to keep up. Amazon forecasts Q3 revenue of $174–$179.5 billion, above consensus, as the company continues to invest heavily in AI and cloud infrastructure.