Amazon Q4 sales jump 14 per cent as AWS revenue surges 24 per cent

SEATTLE: Amazon has closed 2025 with robust fourth-quarter growth across its core businesses, even as spending on sales, marketing and infrastructure continued to climb. The company reported a 14 per cent rise in Q4 net sales to $213.4 billion, driven by solid momentum in North America, International markets and a sharp acceleration at AWS.

Sales and marketing expenses rose 8.7 per cent year on year to $14.3 billion in the quarter, reflecting sustained investment in customer acquisition and brand reach. For the full year, the bill climbed 7.3 per cent to $47.1 billion.

AWS remained the standout performer, with revenue jumping 24 per cent to $35.6 billion in the quarter, its fastest pace in more than three years. North America sales grew 10 per cent to $127.1 billion, while International revenues climbed 17 per cent to $50.7 billion, aided partly by favourable currency movements.

Operating income rose to $25.0 billion in Q4, up from $21.2 billion a year earlier, though the figure was weighed down by special charges linked to tax settlements in Italy, severance costs and asset impairments tied largely to physical stores. Excluding these, operating profit would have reached $27.4 billion.

Net income increased to $21.2 billion, or $1.95 per share, compared with $20.0 billion a year ago.

For the full year 2025, Amazon posted 12 per cent growth in net sales to $716.9 billion. AWS revenues climbed 20 per cent to $128.7 billion, while North America and International segments grew 10 per cent and 13 per cent respectively. Operating income expanded to $80.0 billion, with AWS contributing more than half of the total.

Cash generation strengthened, with operating cash flow rising 20 per cent to $139.5 billion. Free cash flow, however, fell sharply to $11.2 billion as capital spending surged, largely reflecting heavy investment in artificial intelligence infrastructure.

President and chief executive officer Andy Jassy, said demand across cloud services, advertising, retail and emerging technologies such as AI chips, robotics and low-earth-orbit satellites remained strong. He added that Amazon plans to invest around $200 billion in capital expenditure in 2026 to support long-term growth.

The company also pointed to a wave of new AWS partnerships, spanning clients such as OpenAI, Visa, the NBA, BlackRock, Salesforce, Adobe, HSBC and the London Stock Exchange Group, underscoring cloud demand across industries.