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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Current Streak

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Future 50

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Industry

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Industry Rank

Previous Industry Rank

Innovation

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Quality of Management

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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 Second Quarter twenty twenty five 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 Q2 twenty twenty five financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO and Brian Lisowski, our CFO. As you listen to today's conference call, we encourage you to have a 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, 07/31/2025 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 $167,700,000,000 in revenue, up 12% year over year, excluding the impact from foreign exchange rates. Operating income was 19,200,000,000.0 up 31% year over year and trailing twelve month free cash flow was $18,200,000,000 We saw good progress across our various customer experiences and businesses this past quarter. Starting with stores, we feel good about both the inputs and outputs of the business. At Amazon, we think of our business in terms of inputs and outputs.

Outputs are metrics like revenue or operating margin, but, of course, you can't manage at the output level. It's the inputs that drive the outputs. So we spend virtually all of our time internally talking about and going against inputs. The inputs that matter most to customers in our stores business are selection, low prices, and speed of delivery. We've taken another step forward in selection these past few months, headlined by the much requested return of Nike's products to Amazon's retail store.

We've added premium brands like Away, Aveda, Marc Jacobs fragrances, and brands from Saks and Amazon like Dolce and Gabbana, Etro, Stella McCartney, Rosetta Getty, and La Prairie. And we started expanding our very successful perishables pilot, where we offer customers perishables at the point of purchase when they're ordering other items that will be delivered same day from our same day fulfillment nodes. We're seeing strong customer adoption as 75% of customers who've used the service this year are first time shoppers for perishables on Amazon, with 20% of customers who use the service returning multiple times within their first month. Our prices continue to be low and sharp for customers. It's one of the reasons our everyday essentials growth outpaced the rest of the business globally and represented one out of every three units sold.

It's also why well known research firm, Perfidero, has concluded for eight years in a row that Amazon has the lowest prices of any US retailer. But perhaps the clearest outputs are the rate at which our stores business grew this past quarter and the success we saw in our recent Prime Day event. This year's Prime Day was our biggest ever with record sales, number of items sold, and number of Prime sign ups in the three weeks leading up to the Prime Day. Customers saved billions of dollars and independent sellers, most of which are small and medium sized businesses, saw their best sales performance of any Prime Day event yet. There continues to be a lot of noise about the impact that tariffs will have on retail prices and consumption.

Much of it thus far has been wrong and misreported. As we said before, it's impossible to know what will happen. Where will tariffs finally settle, especially China? What happens when we deplete the inventory we forward bought or that our selling partners forward deployed in advance of the tariffs going into effect? If costs end up being higher, who will absorb them?

But what we can share is what we've seen thus far, which is that through the first half of the year, we haven't yet seen diminishing demand nor prices meaningfully appreciating. We also have such diversity of sellers in our marketplace, over 2,000,000 sellers in total, with differing strategies of whether to pass on higher cost to consumers that customers are advantaged shopping at Amazon because they're more likely to find lower prices on the items they care about. Further improving delivery speed remains a key focus, and we continue to make progress. We've previously shared how we rearchitect our US inbound network into a regional structure, allowing us to place inventory and shift from locations closer to customers, improving speed and lowering costs. That work is delivering tangible results.

In q two, we increased the share of orders moving through direct lanes where packages go straight from fulfillment delivery without extra stops by over 40% year over year. We've also reduced the average distance packages traveled by 12% and lowered handling touches per unit by nearly 15%. We've made progress on order consolidation. With more products positioned locally, we're able to pack more items into each box and send fewer packages per order. That has helped drive higher units per box and improved overall cost to serve.

Taken together, these improvements are making the network faster and structurally more efficient. We've also set another global speed record in q two, delivering to Prime members at our fastest speeds ever. In The US, we delivered 30% more items same day or next day than during the same period last year. Items customers used to pick up locally in nearby physical stores are now arriving at their door often within hours, and we're working to further improve delivery speeds no matter where customers live. We've recently announced plans to expand our same day and next day delivery to tens of millions of US customers in more than 4,000 smaller cities, towns, and rural communities by the end of the year.

Today, it's already available in more than a thousand of these communities across The US. The early response from customers in these areas have been very positive. They're shopping more frequently and purchasing household essentials at meaningfully higher rates. Automation and robotics are also important contributors to improving cost efficiencies and driving better customer experiences over time. We deployed our one millionth robot across our global fulfillment network and unveiled innovations at our last mile innovation center, such as automated package sorting and a transformative technology that brings packages directly to employees in an ergonomic height.

We rolled out Deepfleet, our AI whose robot travel efficiency by 10%. At our scale, it's a big deal. Deepfleet acts like a traffic management system to coordinate robots' movements to find optimal paths and reduce bottlenecks. For customers, it means faster delivery times and lower costs. For our team members, our robots handle more of the physically demanding tasks, making our operations network even safer.

This combination of robotics and generative AI is just getting started. And while we've made significant progress, it's still early with respect to what we'll roll out in the next few years. Moving on to Amazon Ads. We're pleased with the strong growth generating $15,700,000,000 of revenue in the quarter, growing 22% year over year. We continue to see strength across our broad portfolio of full funnel advertising offerings that in The US alone help advertisers reach an average ad support audience of more than 300,000,000 across our own properties.

These are properties like our retail marketplace, Prime Video, Twitch, and Fire TV, in live sports such as NFL, NASCAR, and the NBA, as well as third party websites and apps. Another area we're excited about is our demand side platform or Amazon DSP. Our DSP enables advertisers to plan, activate, and measure full funnel investments. Our trillions of proprietary browsing, shopping, and streaming signals paired with extensive supply side relationships and our secure clean rooms provide advertisers the ability to optimize advertising, deliver greater precision, and drive efficient and effective advertising outcomes. And in June, we announced a momentous partnership with Roku, giving advertisers access to 80,000,000 connected TV households, the largest authenticated connected TV footprint in The US exclusively through Amazon DSP.

It's a giant leap forward for advertisers bringing best in class planning, audience precision, and performance to TV advertising. We also announced an integration between Disney's real time ad exchange and Amazon DSP. This collaboration allows advertisers to gain direct access to Disney's premium inventory across platforms like Disney plus, ESPN, and Hulu, while allowing them to leverage insights from both companies. When advertisers work with Amazon, they're not just buying ad space. They're benefiting from exceptional programming, innovative technology, and unrivaled signals, measurement, and audience development that provides strong relevancy for consumers and return on investment for brands.

Moving on to AWS. In q two, AWS grew 17.5% year over year and now has over a 123,000,000,000 annualized revenue run rate. We continue to help organizations of all sizes accelerate their transition to the cloud, signing new agreements with companies including PepsiCo, Airbnb, Peloton, Nasdaq, London Stock Exchange, Nissan Motor, GitLab, SAP, Warner Brothers Discovery, Twelve Labs, FICO, Iberia Airlines, SK Telecom, and NatWest. In the rapidly evolving world of generative AI, AWS continues to build a large, fast growing, triple digit year over year percentage, multibillion dollar business with more demand than we have supplied for at the moment. A few points to make.

First, on the hardware side, our custom AI chip, Trainium two, is landing capacity in larger quantities and has impressively emerged as the backbone for Anthropic's newest generation cloud models and many of our most essential offerings like Amazon Bedrock. We've also launched Amazon EC two instances powered by NVIDIA Grace Blackwell Superchips, AWS' most powerful NVIDIA GPU accelerated instance. Second, in Bedrock, we've recently added Anthropix Cloud four, and it's the fastest growing model ever in Bedrock. We've also continued to see strong adoption of Amazon Nova, our own frontier model, and it's now the second most popular foundation model in Bedrock. New features in Nova allow customers to customize their Nova models in ways they can't on other foundation models, allowing organizations to infuse these models with their unique expertise while optimizing for cost and speed.

As people have become excited about building agents, they're realizing they lack the tools to build them. In May, we released Strands, an open source way to more easily build agents that's taken off with a wide range of customers with already 2,500 stars on GitHub and over 300,000 downloads on Pipedrive. Are also struggling with deploying agents into production in a secure and scalable way. It's holding up enterprises scaling agents. To help solve that problem, Bedrock just released Agent Core.

Agent Core is a set of building blocks that gives customers the industry's first secure serverless runtime to provide both synchronous and asynchronous execution, agent identity and boundaries, a memory service, a gateway that translates services to MCP compatible interfaces, built in code execution and web browser tools, and an observability service. Customers are excited about agent core, and it frees them up to start deploying agents more expansively. Third, you're starting to see AWS release more powerful applications at the top layer of the AI stack. AWS Transform is an AWS agent that dramatically reduces mainframe modernization timelines from years to months, completes VMware to EC two conversions up to 80 times faster, and makes it simple to move from dot net Windows to dot net Linux implementations, reducing licensing costs for dot net applications by up to 40%. We've also just released Curo, our new agentic integrated development environment coding agent.

There's a lot of buzz around Curo with several 100,000 developers using or requesting access in the first couple weeks, a 100,000 used in the first five days of the preview. What struck a chord for developers is that Cura allows them to do vibe coding where developers use natural language to chat with a coding agent to build code. But unlike other coding agents where developers don't really have any structure to build on top of, Cura allows developers to use natural language to build a spec and then automatically updates that spec as they continue to vibe code or interact with Kiro. This makes it much easier to go from prototyping to production. Customers also like Kiro's event driven agent hooks that act like an experienced developer catching things developers might miss.

When developers save a React component, hooks update the test file. When they modify API endpoints, hooks refresh read me files. When they're ready to commit, security hooks scan for leak credentials. It's still very early for Quiro, but it seems clear we're onto something customers love, and Quiro has a chance to transform how developers build software. I say this frequently, but remember that 85 to 90% of worldwide IT spend is still on premises versus in the cloud.

In the next ten to fifteen years, that equation is going to flip, further accelerated by companies' excitement for leveraging AI. So AWS has significantly broader functionality, stronger security and operational performance, and much deeper experience helping enterprises modernize their infrastructure bodes well for the AWS business moving forward. We're also seeing momentum in a number of our other areas across Amazon. I'll mention just a few. We're excited about our progress with Alexa Plus, our next generation assistant powered by generative AI.

We've been rolling out early access to US customers to start. Millions of customers have access now. We're seeing very positive feedback, and we'll continue to iterate on the experience. We've recently completed our third successful launch of Project Kuiper. We haven't launched this service commercially yet, but already have an impressive amount of enterprise and government customers who signed agreements to use Kuiper.

In prime video live sports, our first season of NASCAR drew about 2,000,000 viewers per race and the youngest audience among NASCAR broadcasters in more than a decade. We've recently announced our stellar broadcasting crew for our upcoming first NBA season, including Iron Eagle, Stan Van Gundy, Kevin Harlan, Dwayne Wade, Taylor Rooks, Blake Griffin, Dirk Nowitzki, Steve Nash, and Candice Parker. We also announced Denis Villeneuve, an Academy Award nominee as the director for the next James Bond film. James Bond is in the hands of one of today's greatest filmmakers, and we cannot wait to get started on double o seven's next adventure. Finally, we continue to be very pleased with the growth and resonance of Amazon Pharmacy as it's grown 50% year over year, year to date on an already significant size base.

A lot of good things happening across the company. With that, I'll turn it over to Brian for a financial update.

Thanks, Andy. Let's start with our top line financial results. Worldwide revenue was a $167,700,000,000, a 12% increase year over year excluding the impact of foreign exchange. Foreign exchange had a $1,500,000,000 favorable impact to revenue in the quarter as foreign currencies generally strengthened versus the U. S.

Dollar. As a reminder, our Q2 revenue guidance had anticipated an unfavorable impact of approximately 10 basis points or $100,000,000 Although that operating income was $19,200,000,000 which is $1,700,000,000 above the high end of our guidance range. Across our segments, we continue to prioritize cost effective innovation that delivers value for our customers. In the North America segment, second quarter revenue was $100,100,000,000 an increase of 11% year over year. International segment revenue was $36,800,000,000 an increase of 11% year over year, excluding the impact of foreign exchange.

Worldwide paid units grew 12% year over year. We remain focused on inputs that matter most to our customers. In the second quarter, we saw broad based strength across our key performance metrics. This includes sharp pricing and more in stock availability, as well as record delivery speeds for Prime members. Our millions of global sellers continue to be an important contributor to our vast selection.

This helps customers find the items they need and does so at a competitive price. Our investment in tools, services, and fast delivery speeds help our selling partners reach more customers and further scale their businesses. In q two, worldwide third party seller unit mix was 62%, the highest ever, up on 100 basis points from q two of last year. We're also closely monitoring the macroeconomic environment, including the impact of tariffs. As Andy mentioned, our Q2 plan factored in a range of assumptions, not all of which materialized.

We will continue to consider a range of assumptions going forward. Shifting to profitability, North America segment operating income was $7,500,000,000 an increase of $2,500,000,000 year on year. North America operating margin was 7.5%, up 190 basis points year over year. International segment operating income was $1,500,000,000 up $1,200,000,000 year over year. International operating margin was 4.1%, up three twenty basis points year over year.

We're pleased with the strong execution of our operations teams and the positive experience they delivered for customers. In q two, we saw productivity gains in our transportation network driven by improved inventory placement, strong leverage on high unit volumes, and higher levels of in demand inventory from both first party and third party selling partners. These factors contributed to faster delivery speeds and lower costs. Outbound shipping costs were up 6% year over year and continue to grow at a meaningfully slower pace than unit growth, which as I mentioned earlier was up 12% year over year. We're committed to initiatives that further improve our cost structure.

Strategic inventory placement drives multiple benefits, including better in stock availability, shorter delivery routes, and faster customer delivery times. When we optimize inventory location, we can consolidate more items per package, reducing packaging materials and costs. To achieve this, we will continue to improve upon our inbound network, expand our US same day delivery facilities, including in rural communities, and implement robotics and automation across our facilities. While year over year improvements in operating margin may fluctuate, we have a purposeful strategy to achieve sustained progress over time. Shifting to advertising.

Advertising revenue grew 22% year over year, driven by sponsored products as we saw strong traffic in our stores. Advertising remains an important contributor to profitability in the North American international segments. Our full funnel advertising approach of connecting brands with customers is resonating. Moving next to our AWS segment. Revenue was $30,900,000,000 an increase of 17.5% year over year.

AWS now has an annualized revenue run rate of more than a 123,000,000,000. During the second quarter, we continue to see growth in both our generative AI and non generative AI businesses. As companies turn their attention to newer initiatives, bring more workloads to the cloud, restart or accelerate existing migrations from on premise to the cloud, and tap into the power of generative AI. AWS operating income was $10,200,000,000. We did see AWS segment margins decline from a record high of 39.5% in q one to 32.9% in q two.

The largest quarter over quarter driver of the decrease for about half is due to the seasonal step up in stock based compensation expense driven by the timing of our annual compensation cycle. AWS margins also saw headwinds from higher depreciation expense as well as unfavorable impacts from year over year fluctuations in foreign exchange rates. The depreciation expense is a result of our growing investments in capital expenditures in AWS. As we've said in the past, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we are making at any point in time. We will continue to invest more capital in chips, data centers, and power to pursue this unusually large opportunity that we have in generative AI.

Now turning to our cash CapEx, which was $31,400,000,000 in q two. We expect q two CapEx to be reasonably representative of our quarterly capital investment rate for the back half of this year. AWS continues to be the primary driver as we invest to support demand for our AI services and increasingly in custom silicon like Tranium, as well as tech infrastructure to support our North America and international segments. Additionally, we continue to invest in our fulfillment and transportation network to support growth of the business, improve delivery speeds, and lower our cost to serve by investing in same day delivery facilities as well as robotics and automation. Collectively, these investments will support growth for many years to come.

Moving on to our third quarter financial guidance. As a reminder, our guidance considers a range of possibilities which take into consideration Q2 results, trends we see quarter to date, and expectations around the macroeconomic environment including tariffs. Q3 net sales are expected to be between $174,000,000,000 and $179,500,000,000 We estimate the year over year impact of changes in foreign exchange rates based on current rates, which we expect to be a favorable impact of approximately 130 basis points. As a reminder, global currencies can fluctuate during the quarter. Q3 operating income is expected to be between $15,500,000,000 and $20,500,000,000 In this dynamic environment, we'll focus on what matters most, delivering exceptional customer value through broad selection, competitive prices, and unmatched convenience.

We remain focused on driving a better customer experience and 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. Thank you. Our first question comes from Doug Anmuth with JPMorgan. Please proceed with your question.

Thanks so much for taking the questions. I have two. First, can you just help us understand with some more granularity how tariffs are being absorbed across suppliers, Amazon and consumers and whether you anticipate any change going forward? And then second on AWS, we're seeing significantly faster cloud growth among the number two and three players in the space. I totally appreciate that AWS is coming off of a bigger base. But beyond that, do you think the output gap is due more to customer demand or infrastructure supply or both? Thanks.

Yes, I'll take both of those. I'll start with the tariffs. I think what we said a number of times and we still believe it is we just don't know what's going to happen moving forward. It's hard to know where the tariffs are going to settle particularly in China. It's hard to know what will happen when we deplete some of the pre buys that we did on our own first party retail and then some of the forward deploying that we saw of our third party selling partners.

And when, you know, if costs go up over time, it's, you know, we're unsure at this point who's gonna end up absorbing those higher costs. What we can tell you is what we've seen so far in the first half of the year. In the first half, we just haven't seen diminished demand and we haven't seen any kind of broad scale ASP increases. And, you know, so that that could change in the second half. There are a lot of things that we don't know, but that's what we've seen so far.

On the question on AWS, you know, the first thing I'd say is, you know, it's as you said, Doug, in your question, know, year over year percentages and growth rates are always a function of the base in which you operate. And we have a, you know, a meaningfully larger business in the AWS segment than others. I think the second player is about 65% of the size of of a AWS. And we when we look at the results over the last number of quarters, there's sometimes where as far as we can tell, we're growing faster than others and sometimes others are growing faster than us. But it's still like if you if you look at second place player you're talking about, it's a pretty it's still a pretty significant segment, you know, market segment leadership position that we have.

And regardless, these are all really just moments in time. The last week is a moment in time too where the reality of what really matters is what customers' experiences are in operating on these platforms. And if if you look at what matters to customers, what they care they care a lot about what the operational performance is, you know, what the availability is, what the durability is, what the latency and throughput is of of the various services. And I think we have a pretty significant advantage in that area. They care a lot about security.

If you have data that matters and for most companies, they're putting data that they really care about in the cloud. The security and the privacy of that data matters a lot, and there are very different results in security in AWS than you'll see in other players. And, yeah, you could just you just look at what's happened the last couple months. You can just see kind of adventures at some of these players almost every month. And so very big difference, I think, in security.

And then I I think a a really significant difference in functionality where not just in the core infrastructure do we have a lot more functionality in our services. But I think if you look at our end to end offering in AWS in in AI, it's you know, from the bottom of stack all the way to the top, it it's pretty different. So, you know, I feel good about the the the inputs and the services that we're offering to customers across AI as well as non AI. And, you know, we could we we have more demand than we have capacity right now. So we could be doing more revenue and helping customers more, and we're working very hard on on changing that outcome and how much capacity we have, but it's still like, you know, you go get the business, it's a $123,000,000,000 annual revenue run rate business, and it's still early.

Amazon (AMZN) Q2 2025 Earnings Call Transcript

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