This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Walmart is the world’s second-largest retailer, offering both physical retail and e-commerce. Until February 2025, it was America's largest company by revenue. Groceries currently account for a large portion of the company's sales, but the company also sells a wide range of general merchandise, through Walmart U.S., Walmart International, and Sam’s Club warehouse stores. Walmart also offers health care products and pharmacy services. Founded in 1962, the company changed its name from Wal-Mart Stores to Walmart in 2018.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Amazon, which debuted on the Fortune 500 in 2002, snared the top spot on the strength of 12% year-over-year revenue growth. It also posted record profits as its juggernaut AWS cloud-services business expanded its margins.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are automotive retail, general merchandisers, internet retail, and specialty retail.

Fortune Sector Leaders: Retailing

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

WMA 2024-Amazon

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-Amazon

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Amazon

The e-commerce giant fell two spots on this year's Global 500: Revenue growth, at 9% year over year, was the slowest in Amazon’s history as a public company to date. 
<ul> 
 	<li>Amazon swung from a hefty profit in 2021 to a $2.7 billion loss in 2022. Slowing growth in e-commerce and in the Amazon Web Services (AWS) cloud division contributed to the slump. CEO Andy Jassy said in April 2023 that he anticipated a “pending deluge” in spending on A.I. and machine learning that would revive growth at AWS.</li> 
 	<li>The company announced layoffs of about 27,000 employees in 2023, with cuts concentrated in cloud computing and human resources.</li> 
 	<li>The company closed its physical bookstores and other retail shops in March 2022 to focus on other store formats.</li> 
 	<li>In July 2022 Amazon announced that it would pay $3.5 billion to acquire primary care provider One Medical, adding the company to its growing health care services portfolio.</li> 
</ul>

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Amazon

The e-commerce juggernaut has fallen slightly in the Modern Board 25 rankings but still earned a spot for its accomplishments in gender representation and diversity. Its 11-member board includes founder and former CEO Jeff Bezos and CEO Andy Jassy, the longtime <a href="https://fortune.com/company/amazon-com/">Amazon</a> Web Services head who succeeded Bezos. The board also boasts ex-CEOs such as PepsiCo’s Indra Nooyi and MTV’s Judith McGrath; as well as Edith Cooper, a former Goldman Sachs executive and cofounder of professional coaching platform Medley; and former U.S. Deputy Attorney General Jamie Gorelick. Amazon has ramped up cost-cutting measures recently and laid off 9,000 employees <a href="https://www.aboutamazon.com/news/company-news/update-from-ceo-andy-jassy-on-amazons-operating-plan-and-additional-role-eliminations">in April</a>, following an earlier round of 18,000. It’s also dealing with unionization efforts at several of its warehouses. On the sustainability front, the retail behemoth says it’s on a path to powering operations solely with renewable energy by 2025, noting that several of its AWS data center regions are powered by at least 95% renewable energy.

Fortune Modern Board 25

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Amazon

The e-commerce giant occupies the No. 2 spot on our list for the fourth consecutive year, though revenue growth, at 9% year over year, was the slowest in Amazon’s history as a public company to date. 
<ul> 
 	<li>Amazon swung from a hefty profit in 2021 to a $2.7 billion loss in 2022. Slowing growth in e-commerce and in the Amazon Web Services (AWS) cloud division contributed to the slump. CEO Andy Jassy said in April 2023 that he anticipated a “pending deluge” in spending on A.I. and machine learning that would revive growth at AWS.</li> 
 	<li>The company announced layoffs of about 27,000 employees in 2023, with cuts concentrated in cloud computing and human resources. -</li> 
 	<li>Amazon lost half of its market value between April 2022 and the end of the year, though its stock has since partly rebounded. The company was hit by a tech-stock rout that also affected many of its rivals.</li> 
 	<li>The company closed its physical bookstores and other retail shops in March 2022 to focus on other store formats.</li> 
 	<li>In July 2022 Amazon announced that it would pay $3.5 billion to acquire primary care provider One Medical, adding the company to its growing health care services portfolio.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-02-Amazon

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-02-Amazon

2021 was a tumultuous year for the e-commerce giant. Founder Jeff Bezos formally stepped down as president and CEO on July 5, 2021, and Andy Jassy, longtime head of the Amazon Web Services (AWS) cloud juggernaut, took the reins. The company struggled with labor shortages, a massive surge in employee turnover, and the biggest unionization push since its founding. But those obstacles didn’t stop Amazon from growing its headcount by a net of 310,000 employees in 2021. It also increased its minimum hourly wage from $15 to $18 in September of that year. Amazon’s streaming service sowed the seeds for further growth as the company acquired Hollywood studio MGM in an $8.5 billion deal. Amazon Prime Day sales in 2021 reached a record-breaking total of $11.19 billion. And overall, the retail and cloud-computing powerhouse grew revenue by more than 21% and brought in $33.3 billion in profits, a stunning 56.4% increase over 2020.

Modern Board 2022-Amazon

Amazon’s board includes an impressive array of directors, and scores high on gender equality, age dispersion, and board expertise. In addition to founder and former CEO Jeff Bezos and current CEO Andy Jassy, the longtime Amazon Web Services leader who succeeded Bezos in July 2021, the board includes former CEOs Indra Nooyi (Pepsi), Judith McGrath (MTV Networks), and Patricia Stonesifer (Martha’s Table, a nonprofit). Wendell Weeks, current CEO of Corning, is also on the board. 
 
General (Retired) Keith Alexander, who headed the U.S. Cyber Command in the Obama administration and is a former director of the National Security Agency, joined the board in September 2020. Daniel P. Huttenlocher, dean of the MIT Schwarzman College of Computing, has been a director since September 2016. 
 
Amazon’s growth as of late has been even better than expected; as of April 2022, its stock price was up 50% since the start of 2020. In March 2022, it closed the <a href="https://fortune.com/2022/03/17/amazon-closes-deal-to-acquire-mgm-studios/">acquisition of the entertainment studio MGM</a>, a move intended to support its content business. The company has also announced its first stock split since 1999, scheduled to take place in June 2022, which <a href="https://www.fool.com/investing/2022/03/15/alphabet-amazon-stock-splits-what-you-should-know/">some analysts say</a> will set the stock price up for future gains alongside the company’s significant growth.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Amazon

2021 was a tumultuous year for the e-commerce giant. Founder Jeff Bezos formally stepped down as president and CEO on July 5, 2021, and Andy Jassy, longtime head of the Amazon Web Services (AWS) cloud juggernaut, took the reins. The company struggled with labor shortages, a massive surge in employee turnover, and the biggest unionization push since its founding. But those obstacles didn’t stop Amazon from growing its headcount by a net of 310,000 employees in 2021. It also increased its minimum hourly wage from $15 to $18 in September of that year. Amazon’s streaming service sowed the seeds for further growth as the company acquired Hollywood studio MGM in an $8.5 billion deal. Amazon Prime Day sales in 2021 reached a record-breaking total of $11.19 billion. And overall, the retail and cloud-computing powerhouse grew revenue by more than 21% and brought in $33.3 billion in profits, a stunning 56.4% increase over 2020.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-02-Amazon

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-003-Amazon

Walmart had better watch out. A company this big shouldn’t be able to grow this fast—but Amazon’s 38% revenue growth in 2020 has the Seattle company creeping closer to the top of the Fortune 500. For years a money loser, Amazon earned $21.3 billion in profit on more than $386 billion in annual sales. As the pandemic forced everyone online, the Everything Store won big. The e-tailer’s Prime delivery and entertainment service gained 50 million subscribers year over year, for a total of more than 200 million global customers. CEO Jeff Bezos picked a banner year to step down from leading day-to-day operations; he handed the title to Andy Jassy, former boss of the ultra-profitable Amazon Web Services unit, in the second half of 2021.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-02-Amazon

Walmart had better watch out. A company this big shouldn’t be able to grow this fast—but Amazon’s 38% revenue growth in 2020 has the Seattle company creeping closer to the top of the Fortune 500. For years a money loser, Amazon earned $21.3 billion in profit on more than $386 billion in annual sales. As the pandemic forced everyone online, the Everything Store won big. The e-tailer’s Prime delivery and entertainment service gained 50 million subscribers year over year, for a total of more than 200 million global customers. CEO Jeff Bezos picked a banner year to step down from leading day-to-day operations; he’ll be handing the title to Andy Jassy, currently boss of the ultra-profitable Amazon Web Services unit, in the second half of 2021.

Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

FGC 2021-Amazon

100 Fastest-Growing Companies

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-009-Amazon

A company this big shouldn’t be able to grow this fast—but Amazon’s 21% revenue growth in 2019, to $281 billion, is the reason the Seattle company has moved up four spots on the Global 500. For years a money loser, Amazon earned $11.6 billion in profit on more than $280 billion in annual sales. Key drivers for the so-called Everything Store’s growth? Its consumer bundle keeps expanding. And its Prime delivery and entertainment subscription service counts more than 150 million global customers. As in prior years, the company’s Amazon Web Services unit outpaced the company as a whole, growing revenue at a 37% clip to $35 billion. More recently, the novel coronavirus pandemic accelerated many of the company's big bets: In the company's fiscal second quarter alone (ended June 30, 2020), sales leapt up 40%, year over year, to $88.9 billion. Profits for the quarter, meanwhile, doubled, to $5.2 billion.

Explore this year's ranking of the 50 companies with the best long-term growth potential.

Future 50-2020-Amazon

E-commerce and cloud-storage giant Amazon has been one of the biggest beneficiaries of changing consumer behavior during the COVID-19 pandemic. Its sales jumped 35% to more than $260 billion in the first nine months of 2020, as people stopped going to stores and spent more online. The company’s market-leading cloud-computing division, Amazon Web Services, has also benefited in 2020 as the hosting platform for everything from Netflix to Zoom.

The Future 50

This year's Fortune 500 marks the 66th running of the list.

F500-2020-002-Amazon

A company this big shouldn’t be able to grow this fast—but Amazon’s 21% revenue growth in 2019, to $281 billion, is the reason the Seattle company has catapulted to No. 2 on the Fortune 500. It's now ranked behind only its greatest rival and the world’s biggest retailer: Walmart. For years a money loser, Amazon earned $11.6 billion in profit on more than $280 billion in annual sales. Key drivers for the so-called Everything Store’s growth is that its consumer bundle keeps expanding. Its Prime delivery and entertainment subscription service counts more than 150 million global customers. As in prior years, the company’s Amazon Web Services unit outpaced the company as a whole, growing revenue at a 37% clip to $35 billion.

Collectively, the ranked companies produced a three-year average shareholder return of 19%, vs. 11% for the S&P 500.

Fastest Growing Companies 2020-10-Amazon

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Fortune's proprietary methodology allows us to zero in on the 50 global firms that are best poised to deliver—and continue delivering—above average gains.

This year's Fortune 500 marks the 65th running of the list.

Everybody loves an up-and-comer: 2019's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Welcome to the inaugural Fortune Future 50, our new ranking of companies best positioned for breakout growth.

This year's Fortune 500 marks the 64th running of the list.

Everybody loves an up-and-comer: 2018's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Everybody loves an up-and-comer: 2017's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fastest-growing Companies

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Amazon.com was incorporated in 1994; in 2026, it became the world's biggest company by revenue. It is the largest e-commerce retailer in the U.S. and a player in the grocery business, owing in part to its ownership of the Whole Foods supermarket chain. The company offers cloud services through its Amazon Web Services segment. Amazon develops and produces media content, much of which it streams through its Amazon Prime membership program; in 2021, it acquired the studio Metro-Goldwyn-Mayer (MGM). Amazon also makes and sells electronic devices including the Kindle e-book reader and Echo “smart speaker.”

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Amazon (AMZN): Company Profile, Stock Price, News, Rankings

legacy

Amazon

amazon

Thank you for standing by. Good day, everyone, and welcome to the Amazon.com First Quarter 20 20 5 Financial Results Teleconference. At this time, all participants are in a listen only mode. After the presentation, we will conduct a question and answer session. Today's call is being recorded.

And for opening remarks, I will be turning the call over to the Vice President of Investor Relations, Mr. Dave Files. Thank you, sir. Please go ahead.

Hello, and welcome to our Q1 twenty twenty five financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO and Brian Olesofsky, our CFO. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2024. Our comments and responses to your questions reflect management's views as of today, 05/01/2025 only and will include forward looking statements.

Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10 ks and subsequent filings. During this call, we may discuss certain non GAAP financial measures in our press release, slides accompanying this webcast and our filings with the SEC, each of which is posted on our IR website. You will find additional disclosures regarding these non GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions.

Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed in our filings with the SEC. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings, or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. And now I'll turn the call over to Andy.

Thanks, Dave. Today, we're reporting $155,700,000,000 in revenue, up 10% year over year excluding the impact from foreign exchange rates. Operating income is $18,400,000,000 up 20% year over year and trailing twelve month free cash flow is $25,900,000,000 We're pleased with our continued business progress, but more importantly, with our pace of innovation and additional improvement in our customer experiences. In our stores business, we once again saw strong consumer resonance in our continued work on selection, value, and shipping speed. Our broad selection offers customers choice across their shopping journeys.

We welcome well known brands such as Oura Rings, Michael Kors, and The Ordinary, as well as a new shopping experience with Saks that offers a refined luxury assortment of fashion and beauty items from brands like Dolce and Gabbana, Balmain, Erdem, Jambatista Vallee, and Jason Wu Collection. As always, we're working to keep prices low. And with this being an uncertain moment for consumers, it's even more important than it typically is. In q one, we held deal events worldwide to help customers save over $500,000,000 across the big spring sale in The US and Canada, Spring Deal Days in Europe, and Ramadan Eid sale events in Egypt, Saudi Arabia, Turkey, and The UAE. Prime members will have more opportunities to save throughout the year, including at our eleventh Prime Day event in July.

Over the past few years, we've made significant progress in making our fulfillment network more efficient and cost effective. We've shared many times that an important turning point was regionalizing our national fulfillment network into regional hubs. By stocking items closer to where customers live, we're able to deliver more orders faster, often in fewer packages and at lower delivery costs. The next challenge was getting as many items as possible into these regional nodes. Our inbound network, which is how we get items to each fulfillment center, hadn't been architected to leverage this new regionalization structure.

So we redesigned it and just rolled out a new inbound architecture that expands the share of products that we can place in each fulfillment center, improving delivery speeds and lowering our cost to serve. In the first quarter, we once again set new delivery speed records with our fastest delivery ever for Prime members around the world, and we delivered more items in the same day or next day in q one than any other quarter in our history. Looking ahead, we'll continue to refine our newly redesigned inbound network, build out our same day delivery sites, and add additional robotics and automation throughout our buildings. You'll also see us expand the number of delivery stations that we have in rural areas of The US so we can get items to people who live in less densely populated areas much more quickly. I thought I'd share a few thoughts on the prospect of heightened tariffs on our stores business.

Obviously, none of us knows exactly where tariffs will settle or when. We haven't seen any attenuation of demand yet. To some extent, we've seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact. We also have not seen the average selling price of retail items appreciably go up yet. Some of this reflects some forward buying we did in our first party selling, and some of that reflects some advanced inbounding our third party sellers have done.

But a fair amount of this is that most sellers just haven't changed pricing yet. Again, this could change depending on where tariffs settle. Amazon is not uniquely susceptible to tariffs. As it relates to China, retailers who aren't buying directly from China are typically buying from companies who themselves are buying from China, marking these items up, rebranding, and selling to US consumers. These retailers are buying the product at a higher price than Chinese sellers selling directly to US consumers in our marketplace, so the total tariff will be higher for these retailers than for China direct sellers.

It's also sometimes easy to forget what Amazon sells. We're not mostly selling high average selling price items, though we certainly sell a bunch. In the first quarter, our everyday essentials grew more than twice as fast as the rest of our business and represented one out of every three units sold in The US on Amazon. Even if you exclude Whole Foods Market and Amazon Fresh, Amazon is one of the largest grocers in The US with over a hundred billion dollars in gross sales last year. People are buying a lot of their everyday essentials at Amazon.

We also have extremely large selection, hundreds of millions of unique SKUs, which means we're often able to weather challenging conditions better than others. When there are periods of discontinuity, substantial unexpected product trends emerge. Think about the pandemic when items like masks and hand sanitizer became big sellers. When you have the broadest selection like we do and 2,000,000 plus global sellers like we do, you're better positioned to help customers find whatever items matter to them at lower price points than elsewhere. Finally, when there are uncertain environments, customers tend to choose the provider they trust most.

Given our really broad selection, low pricing, and speedy delivery, we have emerged from these uncertain areas with more relative market segment share than we started and better set up for the future. I'm optimistic this could happen again. Moving to a few words on Amazon Ads. We're working hard to be the best place for brands of all sizes to grow their business. We are pleased with the strong growth on a very large base generating $13,900,000,000 of revenue in the quarter and growing 19% year over year.

We're seeing strength across our broad portfolio of full funnel advertising offerings that help advertisers reach an average ad supported audience of more than 275,000,000 in The US alone. This includes our top of funnel efforts to drive brand awareness to bottom of funnel offerings where we measure outcomes at the point of conversion. Amazon ad provides brands with tools to reach targeted audiences in our own entertainment properties such as Prime Video, Twitch, IMDb, in live sports such as NFL, NBA, and NASCAR, audio content such as Amazon Music and Wondery, of course, in our store, as well as many other external sites such as Pinterest and BuzzFeed. All of our audience and measurement capabilities work for the ads we deliver across premium third party publishers through Amazon DSP, and our secure clean rooms provide advertisers the ability to analyze data, produce core marketing metrics, and understand how their marketing performs across various channels. We continue to see a lot of opportunity to further expand our full funnel capabilities for brands.

AWS grew 17% year over year in q one and now sits at a $117,000,000,000 annualized revenue run rate. We continue to help organizations of all sizes accelerate their move to the cloud, helping to modernize their infrastructure, lower costs, and speed up innovation. We signed new AWS agreements with companies including Adobe, Uber, Nasdaq, Ericsson, Fujitsu, Cargill, Mitsubishi Electric Corporation, General Dynamics Information Technology, GE Vernova, Booz Allen Hamilton, NextEra Energy, Publicis Sapient, Elastic, Netsmart, and many others. It's useful to remember that more than 85% of the global IT spend is still on premises, so not in the cloud yet. It seems pretty straightforward to me that this equation will flip in the next ten to twenty years.

Before this generation of AI, we thought AWS had the chance to ultimately be a multi hundred billion dollar revenue run rate business. We now think it could be even larger. If you believe your mission is to make customers' lives easier and better every day, and you believe that every customer experience will be reinvented with AI, you're gonna invest very aggressively in AI, and that's what we're doing. You can see that in the thousand plus AI applications we're building across Amazon. You can see that with our next generation of Alexa named Alexa Plus.

You can see that in how we're using AI in our fulfillment network, robotics, shopping, prime video, and advertising experiences. And you can see that in the building blocks AWS is constructing for external and internal builders to build their own AI solutions. We're not dabbling here. We're very intentionally giving builders the broadest possible capabilities at every level of the AI stack cost effectively to use AI expansively across their businesses. At the bottom layer for those building models, our new custom AI chip training two is starting to land capacity in larger quantities with significant appeal and demand.

While we offer customers the ability to do AI in multiple chip providers and will for as long as I can proceed, customers doing AI at any significant scale realize that it can get expensive quickly. So the 30 to 40% better price performance that Tranium two offers versus other GPU based instances is compelling. For AI to be as successful as we believe it can be, the price of inference needs to come down significantly. We consider this part of our mission and responsibility to help make it so. At the middle layer, for those wanting to leverage frontier models to build generative AI apps, Amazon Bedrock is our fully managed service that offers a choice of high performing foundation models with the most compelling set of features that make it easy to build high quality generative AI applications.

We continue to iterate quickly on Bedrock, adding Anthropix Cloud three dot seven SONNET hybrid reasoning model, their most intelligent model to date, and Meta's Glama four family of models. We were also the first cloud service provider to make DeepSeek r one and Mistral AI's pixels large generally available as a fully managed model. And, of course, we offer our own Amazon Nova state of the art foundation models in Bedrock with the latest premier model launching yesterday. They deliver frontier intelligence and industry leading price performance, and we have thousands of customers already using them, including Slack, Siemens, Sumo Logic, Coinbase, FanDuel, Glean, and Blue Origin. A few weeks ago, we released Amazon NovaSonic, a new speech to speech foundation model that enables developers to build voice based AI applications that are highly accurate, expressive, and human like.

NovaSonic has lower word error rates and higher win rates over other comparable models for speech interactions. The technology world is also buzz about the potential of agents. To date, virtually all of the agentic use cases have been of the question answer variety. Our intention is for agents to perform wide ranging, complex, multistep tasks, like organizing a trip or setting the lighting, temperature, or music ambiance in your house for dinner guests, or handling complex IT tasks to increase business productivity. There haven't been action oriented agents like this until Alexa Plus, but the technology to build these agents is still quite primitive, inaccurate, and requires constant human supervision.

We've just released a research preview of Amazon Nova Act, a new AI model trained to perform actions within a web browser. It enables developers to break down complex workflows into reliable atomic commands like search or checkout or answer questions about the screen. It also enables them to add more detailed instructions to these commands where needed, like don't accept the insurance upsell. NovaACT aims to move the current state of the art accuracy on multistep agentic actions from 30 to 60% to 90 plus percent with the right set of building blocks to build these action oriented agents. At the very top of the stack are the applications.

This past quarter, Amazon Q, the most capable generative AI powered assistant for accelerating software development and leveraging your own data, launched a lightning fast new agentic coding experience within the command line interface that could execute complex workflows autonomously. Customers are loving this. We also made generally available GitLab Duo with Amazon queue, enabling AI agents to assist multistep tasks such as new feature development, code base upgrades for Java eight and eleven, while also offering code review and unit testing all within the same familiar GitLab platform. Our AI business has a multibillion dollar annual revenue run rate, continues to grow triple digit year over year percentages, and is still in its very early days. While there is good reason for the high optimism about AI, I conclude my AWS comments with a reminder that there is still so much on premises infrastructure yet to be moved to the cloud.

Infrastructure modernization is much less sexy to talk about than AI, but fundamental to any company's technology and invention capabilities, developer productivity, speed, and cost structure. And for companies to realize the full potential of AI, they're going to need their infrastructure and data in the cloud. I wanna briefly mention a few other items. As I've referenced a couple times, in q one, we introduced Alexa Plus, our next generation Alexa personal assistant who's meaningfully smarter and more capable than her prior self, can both answer virtually any question and take actions, and is free with Prime or available to non Prime customers for $19.99 a month. We're just starting to roll this out in The US, and we'll be expanding to additional countries later this year.

People are really liking Alexa Plus this far. We're excited and honored to be part of the joint venture that will be creating the next generation of the esteemed James Bond film franchise. We recently named acclaimed producer Amy Pascal and David Haymon to produce the next James Bond movie. Additionally, just a couple days ago, Project Kuiper reached a significant milestone by launching our first satellites into orbit with more being launched soon, and we expect to begin offering service to customers later this year. I'm proud of what our teams around the world have delivered.

We're excited about what we're inventing and working on as we speak. With that, I'll turn it over to Brian for a financial update.

Thanks, Andy. I will begin with our top line financial results. Worldwide revenue was $155,700,000,000 a 10% increase year over year excluding the impact of foreign exchange. This equates to a $1,400,000,000 headwind from foreign exchange year over year in the quarter. Worldwide operating income was $18,400,000,000 approximately $400,000,000 above the high end of our guidance range.

These results include one time charges that impacted North America and international operating income that I will discuss in a moment. First, let's start with the net sales results for these segments. In the North America segment, first quarter revenue was $92,900,000,000 an increase of 8% year over year. Our international segment revenue was $33,500,000,000 also an increase of 8% year over year excluding the impact of foreign exchange. Worldwide paid units grew 8% year over year.

Our priority is to provide value to our customers across our businesses. In the first quarter, we held multiple deal events around the world which drove strong customer engagement. We saw broad based strengths across our key business inputs including record delivery speeds for Prime members enabled by improved inventory placement. Our vast selection gives customers choice across various price points, particularly in categories like grocery, which includes everyday essentials. These are the items that people purchase most frequently.

We partner with millions of independent sellers from around the world. These selling partners are important contributors to our broad selection, and worldwide third party selling unit mix was 61% in Q1, consistent with Q1 of last year. Shifting to profitability, North America segment operating income was $5,800,000,000 and international segment operating income was $1,000,000,000 with operating margins of 6.3% in North America and 3% internationally. As I mentioned earlier, during the quarter we recorded one time charges related to some historical customer returns has not yet been resolved and some cost to receive inventory that was pulled forward into Q1 ahead of anticipated tariffs. Without these charges, North America and international operating margins would have been approximately 90 basis points and 70 basis points higher or operating margins of 7.2% for North America and 3.7% for International.

We are pleased with how our teams continue to execute and deliver for customers. In Q1, our newly re architected inbound network drove productivity in our fulfillment and transportation network leading to better inventory placement and higher units per package and as a result lower delivery costs. Beyond Q1 we have a number of initiatives underway to continue improving our cost structure such as fine tuning our inbound network, building out our same day delivery sites, expanding our rural delivery network and adding robotics and automation to our facilities. Better inventory placement remains a top priority. Better placement drives more in stock selection, reduces travel distances, and speeds up delivery.

And having the inventory in the right place at the right time increases the likelihood that multiple items can be combined in a package, which helps reduce packaging and costs. Although progress won't always be linear, we have a good plan to continue to drive improvement over time. Shifting to advertising. Advertising remains an important contributor to profitability in the North America and international segments. Advertising revenue grew 19% year over year.

We're pleased with the accelerating growth on an increasingly large base. We're seeing strong adoption across our full funnel advertising offering as brands appreciate our ability to connect them with customers. We'll also continue to invest in other long term opportunities. These efforts have the potential to be important to customers and Amazon in the future, including Kuiper, where we had our first launch of our production design satellites earlier this week, and we'll be launching more satellites throughout the year. We're closely monitoring the macroeconomic environment including the impact of tariffs.

We're planning for various outcomes and we've taken a number of actions to protect the customer experience. We're doing everything we can to keep our prices low for customers in a way that makes economic sense. Moving next to our AWS segment, revenue was $29,300,000,000 in Q1, an increase of 17% year over year. AWS now has an annualized revenue run rate of more than $117,000,000,000 During the first quarter, we continued to see growth in both generative AI business and non generative AI offerings as companies turn their attention to newer initiatives, bring more workloads to the cloud, restart or accelerate existing migrations from on premises to the cloud, and tap into the power of generative AI. AWS operating income was $11,500,000,000 and reflects our continued growth coupled with our focus on driving efficiencies across the business.

As we've said before, we expect AWS operating margins to fluctuate over time driven in part by the level of investments we're making at any point in time. Plan to bring on an increasing amount of capacity in the back half of the year. Now turning to our cash CapEx which was $24,300,000,000 in Q1. The majority of this spend is to support the growing need for technology infrastructure. This primarily relates to AWS as we invest to support demand for our AI services and increasingly in custom silicon like Traneum as well as tech infrastructure to support our North America and international segments.

We're also investing in our fulfillment and transportation network to support future growth and improve delivery speeds and our cost structure. This investment will support growth for many years to come. While we primarily focus our comments on operating income, I'd like to point out that our first quarter net income of $17,100,000,000 includes a pre tax gain of $3,300,000,000 included in non operating income and it relates to our investment in Anthropic. This activity is not related to Amazon's ongoing operations but rather the result of the conversion of a portion of our convertible notes to non voting preferred stock. Turning to Q2 guidance.

As a reminder, our guidance considers a range of possibilities and takes into account Q1 results, trends in quarter to date results and expectations around the macroeconomic environment. Q2 net sales are expected to be between $159,000,000,000 and $164,000,000,000 We estimate the year over year impact of changes in foreign exchange rates based on current rates, which we expect to be a headwind of approximately 10 basis points in the quarter. As a reminder, global currencies can fluctuate during the quarter. Q2 operating income is expected to be between $13,000,000,000 and $17,500,000,000 This estimate includes the impact of our seasonal step up in stock based compensation expense in Q2, driven by the timing of our annual compensation cycle. The external environment remains complex.

And as we have done throughout our history, we are focused on the inputs that we can control to protect the customer experience. We will work hard to remain to place customers' trust for sharp prices, broad selection, and convenience. We'll remain focused on driving a better customer experience, and we still believe putting customers first is the only reliable way to create lasting value for our shareholders. With that, let's move on to your questions.

Thank you. At this time, we will now open the call up for questions. We ask each caller to please limit yourself to one question. And the first question comes from the line of Ross Sandler with Barclays. Please proceed with your question.

Great. I think I'm going leave the China questions to others and focus on AWS and and kind of AI. So, Andy, it seems like you've been bringing on a lot more p five GPU instances since February from what it looks like to kind of support all these new AI workloads. So how would you characterize in the first quarter and maybe here in the second quarter, the kind of supply demand imbalance that you talked about before around AI workloads? And when do you think that AWS will be in a position to kind of capture enough AI revenue to drive acceleration?

Is that something that could happen this year? Or do you see that more like next year given your capacity constraints? Thank you very much.

Thanks, Ross. You know, I would say that we're we've been bringing on a lot of p fives, which is a form of an NVIDIA chip instances, as well as landing more and more training two instances as fast as we can. And I I would tell you that, you know, our our AI business right now is a multi billion dollar annual run rate business. It's growing triple digit percentages year over year. And we as fast as we actually put the capacity in, it's being consumed.

So, you know, I think we could be driving we could be helping more customers and driving more revenue for the business if we had more capacity. We have a lot more training two instances and the next generation of NVIDIA's instances landing in the coming months. I expect that, you know, there are other parts of the supply chain that that are a little bit jammed up jammed up as well, you know, motherboards and some other componentry. But I do and some of that is just because there is so much demand right now. But I do believe that the supply chain issues and the capacity issues will continue to get better as the year proceeds.

And the next question comes from the line of Eric Sheridan with Goldman Sachs. Please proceed with your question.

Thanks so much for taking the question. Maybe I could ask a two parter. First, in terms of strategy, how do you think about positioning the company for the medium term with given all the levels of uncertainty out there about how the global trade environment might shift in the coming months, what do you see as the key strategic priorities that will allow the company to sort of be able to capitalize one way or another depending on various elements of outcome? And how do you prioritize those investments in the months ahead? And then with respect to the one quarter forward operating income guide, is there anything in there from a cost side that we should be thinking about as purely aligned with those types of investments against the trade landscape that might not repeat either later into this year or next year?

Thanks, Eric. It's hard to tell what's gonna happen with tariffs right now. It's it's hard to tell, where they're gonna settle and and when they're gonna settle. And so a lot of what we're thinking about, short and medium term actually turns out to be what we think about long term too, which is how do we actually have the broadest possible selection for customers at the lowest possible prices? And there's maybe never been a more important time in recent memory than than, you know, trying to keep prices low, which we're heads down, pretty maniacally focused on, and then get things to people quickly and take care of customers.

And that that that is the heart of what we're doing, and you can see different initiatives that we've taken within those priorities. You know, we've done some forward buys of inventory in where we're the first party seller. Our third party sellers have pulled forward a number of items so they have inventory here as well. And and those are all you know, we're encouraging that because we're trying to keep prices as low as possible for customers. I think also when you have as broad selection as we have, and we have much broader selection than than other retailers, it means that when you've got this continuity like we may potentially have, you're better able to help customers find what they want no matter what those trends are.

And I I mentioned in my opening comments about what happened in the pandemic, and you can bet they're gonna be things that we don't anticipate that customers really value and want that are different. It could be as simple, by the way, as just favoring other brands that maybe people didn't know about before, but where they have a more favorable price equation for customers. And I think when you've also got another thing that people forget is that when you've got 2,000,000 plus sellers, they're not all gonna take the same strategy if there ends up being higher tariffs. I mean, there there are gonna be plenty of sellers that that decide to pass on those higher cost to end consumers, but they're gonna you know, we have a lot of sellers in lots of different countries, and not all of them are gonna pursue the same tack. And so, yeah, I I think when you've got larger diversity like we have, we have a better chance of some of those sellers deciding that they're gonna capture share, and and they're not gonna pass on all or any of those tariffs to to customers.

And and so I think customers are gonna have a better chance of finding variety on on selection and on lower prices when they come here. And, you know, and, you know, the the last thing I would say is that we have been in a a number of our businesses, but just I'd say over the last six years or so, we have been diversifying where we produce things over a long period of time. We we had a, I would say, a meaningfully higher concentration of where we produce components for AWS or devices in China than we have now where we've diversified meaningfully over that time, and we just thought that was wise to do so. And so those are some of the ways that we're trying to make sure that we are are protecting our customers over the short, medium, and long term. But it it turns out that most of those are the things that we focus most on, which is really broad selection for ultimate choice, really low prices, and very fast delivery.

Amazon (AMZN) Q1 2025 Earnings Call Transcript

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