e-commerce
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.
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
