The world’s largest online retailer Amazon.com Inc. in the second quarter of 2025 increased net profit by a third and increased revenue by 13 per cent, both of which exceeded market forecasts.
At the same time, the company’s stock fell sharply in price because its forecast for third-quarter operating profit disappointed investors.
According to the company’s press release, its net income for the April-June period was $18.2 billion, or $1.68 per share, compared with $13.49 billion, or $1.26 per share, for the same period a year earlier.
Revenue rose 13% to $167.7 billion.
Analysts surveyed by FactSet on average expected the company to post second-quarter earnings of $1.33 per share on revenue of $162.2 billion.
The company’s operating profit rose to $19.2bn from $14.7bn a year earlier.
In the goods segment, revenue rose 10.8% to $68.2bn, while in services the figure jumped 15.1% to $99.5bn.
Amazon’s online shopping business in North America grew revenue 11% to $100.1bn in April-June, while overseas revenue rose 16% to $36.8bn.
Amazon Web Services (AWS) cloud revenue rose 17.5% to $30.9bn, with analysts expecting revenue of $30.8bn.
The advertising business increased revenue by 23% to $15.69bn, against a forecast of $14.9bn.
Amazon expects third-quarter revenue of $174bn to $179.5bn and operating profit of $15.5bn to $20.5bn, with analysts expecting revenue of $173.27bn and operating profit of $19.4bn.
Amazon shares fell 6.6 per cent in additional trading on Thursday. The company’s market value has risen 6.7 per cent to $2.49 trillion since the start of this year.