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 Fourth Quarter 20 20 4 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, Dave Fildes. Thank you, sir. Please go ahead.

Hello, and welcome to our Q4 twenty twenty four financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO and Brian Olsafsky, 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 2023. Our comments and responses to your questions reflect management's views as of today, 02/06/2025 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 K 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 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 $187,800,000,000 in revenue, up 10% year over year. Given the way the dollar strengthened throughout the quarter, we saw $700,000,000 more of foreign exchange headwind than we anticipated a guidance. Without that headwind, revenue would have been 11% year over year and exceeded the top end of our guidance. Operating income was $21,200,000,000 up 61% year over year and trailing twelve month free cash flow adjusted for equipment finance leases was $36,200,000,000 up $700,000,000 year over year.

We're pleased with the invention, customer experience improvements and results delivered in 2024 and have a lot more planned in 2025. I'll start by talking about our stores business. We saw 10% year over year revenue growth in our North America segment and 9% year over year in our international segment, excluding the impact from foreign exchange rates. Our continued focus on expanding selection, lowering prices and improving convenience drove strong unit growth that even outpaced our revenue growth. We continue to add to our broad range of selection, giving customers choice across a variety of price points.

We welcome notable brands to our store throughout 2024, including Clinique, Estee Lauder or Arrhings and Armani Beauty. We continue to add to the hundreds of millions of products offered from our selling partners, who made up 61% of items that we sold in 2024, our highest annual mix of third party seller units ever. We also launched Amazon Hall for U. S. Customers in Q4, which offers customers an engaging shopping experience that brings ultra low price products into one convenient destination.

It's off to a very strong start. Customers continue to want Amazon to be the place they rely on for sharp pricing. In the fourth quarter, consumers save more than $15,000,000,000 with our low everyday prices and record setting events during the prime big deal days in October and Black Friday and Cyber Monday around Thanksgiving. Additionally Profitero's annual pricing study found that entering the holiday season, Amazon had the lowest online prices for the eighth year in a row, averaging 14% lower prices on average and other leading retailers in The U. S.

Our speed of delivery continues to accelerate and 2024 was another record setting year for Prime members. We expanded the number of same day delivery sites by more than 60% in 2024, which now serve more than 140 metro areas. And overall, we delivered over 9,000,000,000 units the same or next day around the world. Our relentless pursuit of better selection, price and delivery speed is driving accelerated growth in Prime membership. For just $14.99 a month, Prime members get unlimited free shipping on 300,000,000 items off in the same day or one day delivery, exclusive shopping events like Prime Day, access to a vast collection of premium programming and live sports and Prime Video, ad free listening of a hundred million songs and podcasts with Amazon Music, access to unlimited generic prescriptions for only $5 a month, unlimited grocery delivery and orders over $35 from Whole Foods Market and Amazon Fresh for $9.99 a month, a free Grubhub Plus membership with free unlimited delivery, and our latest benefit of a $0.1 per gallon fuel discount at BP, Amaco and AMPM stations.

When you think about this as a whole and also compared to many other membership services that are comparably and more expensively priced that offer just one benefit like video, Prime is a screaming deal and we have more coming for our Prime members in 2025. We also remain squarely focused on cost to serve in our fulfillment network, which has been a meaningful driver of our increased operating income. We talked about the regionalization of our U. S. Network.

We've also recently rolled out our redesigned U. S. Inbound network. While still in its early stages, our inbound efforts have improved our placement of inventory so that even more items are closer to end customers. Ahead of Black Friday in November, we'd improved the percentage of ordered units available in the Ideal Building by over 40% year over year.

We've also spent considerable time optimizing the number of items we send customers in the same package, which reduces packaging, is more convenient for customers and less expensive for us to fulfill. And our per unit transportation costs continue to decline as we build out and optimize our last mile network. Overall, we've reduced our global cost to serve on a per unit basis for the second year in a row, while at the same time increasing speed, improving safety and adding selection. As we look to 2025 and beyond, we see opportunity to reduce costs again as we further refine inventory placement, grow our same day delivery network, accelerate robotics and automation throughout the network. In advertising, we remain pleased with the strong growth on a very large base generating $17,300,000,000 of revenue in the quarter and growing 18% year over year.

That's a $69,000,000,000 annual revenue run rate more than double what it was just four years ago at $29,000,000,000 Sponsored products, the largest portion of ad revenue are doing well and we see runway for even more growth. We also have a number of newer streaming offerings that are starting to become significant new revenue sources. On the streaming video side, we wrapped up our first year of Prime Video ads and we're quite pleased with the early progress and head into this year with momentum. We made it easier to do full funnel advertising with us. Full funnel is from the top of the funnel with broad reach advertising that drives brand awareness to mid funnel where sponsored brands let companies specify certain keywords and audiences to attract people to their detail pages or brand store on Amazon to bottom of the funnel where sponsored products help advertisers serve as relevant product ads to customers at the point of purchase.

We make this easy for brands to sign up for and to play across our growing advertising. We also have differentiated audience features that leverage billions of customer signals across our stores and media destinations. From Amazon Marketing Cloud secure clean rooms providing advertisers the ability to analyze data, produce core marketing metrics and understand how their marketing performs across various channels to our new multi touch attribution model that helps advertisers understand how their marketing is working. If an advertiser uses streaming TV, display, sponsored products and other ad types in their campaign, multi touch attribution will show the relative contribution of each to their sales. Moving on to AWS, in Q4, AWS grew 19% year over year and now has a $115,000,000,000 annualized revenue run rate.

AWS is a reasonably large business by most folks' standards And though we expect growth will be lumpy over the next few years as enterprise adoption cycles, capacity considerations and technology advancements impact timing, it's hard to overstate how optimistic we are about what lies ahead for AWS' customers and business. I spent a fair bit of time thinking several years out. And while it may be hard for some to fathom a world where virtually every app has generative AI infused in it, with inference being a core building block just like compute, storage and database, and most companies having their own agents that accomplish various tasks and interacts with one another, this is the world we're thinking about all the time. And we continue to believe that this world will mostly be built on top of the cloud with the largest portion of it on AWS. To best help customers realize this future, you need powerful capabilities of all three layers of the stack.

At the bottom layer for those building models, you need compelling chips. Chips are the key ingredient in the compute that drives training and inference. Most AI compute has been driven by NVIDIA chips and we obviously have a deep partnership with NVIDIA and will for as long as we can see into the future. However, there aren't that many generative AI applications of large scale yet. And when you get there, as we have with apps like Alexa and Rufus, cost can get steep quickly.

Customers want better price performance and it's why we built our own custom AI silicon. Trainium two just launched at our AWS re:Invent conference in December and EC2 instances with these chips are typically 30% to 40% more price performance than other current GPU powered instances available. That's very compelling at scale. Several technically capable companies like Adobe, Databricks, Poolside and Qualcomm have seen impressive results in early testing of Trainium two. It's also why you're seeing Anthropic build their future frontier models on Trainium two.

We're collaborating with Anthropic to build Project Rainier, a cluster of Trainium two ultra servers containing hundreds of thousands of Trainium two chips. This cluster is going to be five times the number of exoFLOPS as the cluster that Anthropic used to train their current leading set of cloud models. We're already hard at work on Trainium three, which we expect to preview late in 2025 and defining Trainium four thereafter. Building outstanding performing chips that deliver leading price performance has become a core strength of AWS's, starting with our Nitro and Graviton chips in our core business and now extending to Trainium and AI. It's something unique to AWS relative to other competing cloud providers.

The other key component for model builders is services that make it easier to construct their models. I won't spend a lot of time in these comments on Amazon SageMaker AI, which has become the go to service for AI model builders to manage their AI data, build models, experiment and deploy these models, except to say the SageMaker's HyperPOD capability, which automatically splits training workloads across many AI accelerators, prevents interruptions by periodically saving checkpoints and automatically repairing faulty instances from their last saved checkpoint and saving training time by up to 40%. It continues to be a differentiator, receive several new compelling capabilities at re:Invent, including the ability to manage costs at a cluster level and prioritize which workloads should receive capacity when budgets are reached and is increasingly being adopted by model builders. At the middle layer for those wanting to leverage Frontier models to build Jet AI apps, Amazon Bedrock is our fully managed service that offers the broadest choice of high performing foundation models with the most compelling set of features that make it easy to build a high quality generative AI application. We continue to iterate quickly on Bedrock announcing Luma AI, Poolside and over 100 other popular emerging models to Bedrock and re:Invent.

In short order, we also just added DeepSeq's R1 models to Bedrock and SageMaker. Additionally, we delivered several compelling new Bedrock features of re:Invent, including prompt caching, intelligent prompt routing and model distillation, all of which help customers achieve lower cost and latency in their inference. Like SageMaker AI, Bedrock is growing quickly and resonating strongly with customers. Related, we also just launched Amazon's own family of frontier models in Bedrock called Nova. These models compare favorably in intelligence against the leading models in the world, but offer a lower latency, lower price about 75% lower than other models in Bedrock and are integrated with key Bedrock features like fine tuning, model distillation, knowledge bases or RAG and AgenTek capabilities.

Thousands of AWS customers are already taking advantage of the capabilities and price performance of Amazon Nova models, including Palantir, Deloitte, SAP, Dentsu, Fortinet, Trellix and Robinhood, and we've just gotten started. At the top layer of the stack, Amazon Q is the most capable generative AI powered assistant for software development and to leverage your own data. You may remember that on the last call, I shared the very practical use case where Q Transform helped save Amazon's teams $260,000,000 and four thousand five hundred developer years in migrating over 30,000 applications to new versions of the Java JDK. This is real value and companies asked for more, which we obliged with our recent deliveries of Q transformation that enable moves from windows.net applications to Linux, VMware to EC2 and accelerates mainframe migrations. Early customer testing indicates that QConcern was going to be a multi year effort to do a mainframe migration into a multi quarter effort, cutting by more than 50% time to migrate mainframes.

This is a big deal and these transformations are good examples of practical AI. While AI continues to be a compelling new driver in the business, we haven't lost our focus on core modernization of companies' technology infrastructure from on premises to the cloud. We signed new AWS agreements with companies including Intuit, PayPal, Norwegian Cruise Line Holdings, Northrop Grumman, The Guardian Life Insurance Company of America, Reddit, Japan Airlines, Baker Hughes, the Hertz Corporation, Redfin, Chime Financial, Asana and many others. Consistent customer feedback from our recent AWS re:Invent gathering was appreciation that we're still inventing rapidly in non AI key infrastructure areas like storage, compute, database analytics. Our functionality leadership continues to expand and there were several key launches customers were abuzz about including Amazon Aurora D SQL, our new serverless distributed SQL database that enables applications with the highest availability, strong consistency, Postgres compatibility, and four times faster reads and writes compared to other popular distributed SQL databases.

Amazon S3 tables, which make S3 the first cloud object store with fully managed support for Apache Iceberg for faster analytics Amazon S3 metadata, which automatically generates queryable metadata, simplifying data discovery, business analytics and real time inference to help customers unlock the value of their data in S3. And the next generation of Amazon SageMaker, which brings together all the data analytics services and AI services into one interface to do analytics and AI more easily at scale. As 2024 comes to an end, I want to thank our teammates and partners for their meaningful impact throughout the year. It was a very successful year across almost any dimension you pick. We're far from done and look forward to delivering for customers in 2025.

With that, I'll turn it over to Brian for a financial update.

Thanks, Sandy. Starting with our top line financial results. Worldwide revenue was $187,800,000,000 an 11% increase year over year, excluding the impact of foreign exchange. This equates to an approximate $900,000,000 headwind from FX in the quarter, which is about $700,000,000 higher than what we'd anticipated in our Q4 guidance range. Excluding that additional FX headwind, we would have exceeded the top end of our revenue guidance range.

Worldwide operating income was $21,200,000,000 our largest operating income quarter ever and was $1,200,000,000 above the high end of our guidance range. Across all segments, we continue to innovate for customers while operating more efficiently at the same time. In the North America segment, fourth quarter revenue was $115,600,000,000 an increase of 10% year over year. International segment revenue was $43,400,000,000 an increase of 9% year over year excluding the impact of foreign exchange. Worldwide paid units grew 11% year over year as our focus on low prices, broad selection and fast shipping continues to resonate with customers.

Shifting to profitability, North America segment operating income was $9,300,000,000 an increase of $2,800,000,000 year over year. Operating margin was 8%, up 190 basis points year over year. In the International segment, operating income was $1,300,000,000 an improvement of $1,700,000,000 year over year. Operating margin was 3%, up 400 basis points year over year. This marks the eighth consecutive quarter where we've seen year over year margin improvement in both the North America and International segments.

2024 also marks the second year in a row where we've lowered our global cost to serve on a per unit basis. In the fourth quarter, we saw strong productivity in our transportation network from improved inventory placement, higher units per package and reduced travel distances. We also saw improved productivity in our fulfillment centers. Overall, our teams executed extremely well throughout the quarter and particularly during our peak seasons. I want to thank them for all they do to deliver for our customers.

Looking ahead, we have several opportunities to keep lowering our costs through even better inventory placement, which also allows us to deliver items to customers faster. In The U. S, we're tuning our inbound network and continuing to expand our same day delivery network. Globally, we're adding automation and robotics throughout our network. While these efforts will take time to implement and progress may not be linear, we have a good plan to continue to drive improvements in our cost structure.

Advertising remains an important contributor to profitability in The North America and international segments. This quarter, we saw strong advertising revenue growth on an increasingly large base. We will also continue to invest in experiences that have potential to be important to customers in Amazon long term in areas like Alexa, healthcare and grocery, as well as Kuiper, including the planned launches of our production satellites in the coming months. As a reminder, we currently expense the majority of the costs associated with the development of our satellite network. We will capitalize certain costs once the service achieves commercial viability, including sales to customers.

Moving next to our AWS segment. Revenue was $28,800,000,000 an increase of 19% year over year. AWS now has an annualized revenue run rate of $115,000,000,000 During the fourth quarter, we continue to see growth in both generative AI 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 premise to the cloud, and tap into the power of generative AI. Customers recognize to get the full benefit of generative AI, they have to move to the cloud. AWS reported operating income of $10,600,000,000 an increase of $3,500,000,000 year over year.

This is a result of strong growth, innovation in our software and infrastructure to drive efficiencies and continued focus on cost control across the business. 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're making. Additionally, we increased the estimated useful life of our servers starting in 2024, which contributed approximately 200 basis points to the AWS margin increase year over year in Q4. Now turning to our capital investments. As a reminder, we define these as a combination of cash CapEx plus equipment finance leases.

Capital investments were $26,300,000,000 in the fourth quarter, and we think that run rate will be reasonably representative of our 2025 capital investment rate. Similar to 2024, the majority of the spend will be to support the growing need for technology infrastructure. This primarily relates to AWS, including to support demand for our AI services as well as tech infrastructure to support our North America and international segments. Additionally, we're continuing to invest in capacity for our fulfillment and transportation network to support future growth. We're also investing in same day delivery facilities and our inbound network as well as robotics and automation to improve delivery speeds and to lower our cost to serve.

These capital investments will support growth for many years to come. Turning to our revenue guidance for Q1. Net sales are expected to be between $151,000,000,000 and $155,500,000,000 I'd like to highlight two items impacting our Q1 revenue guidance. First, 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 $2,100,000,000 in Q1 year over year or 150 basis points. As a reminder, global currencies can fluctuate during the quarter and just as we saw in Q4 with the strengthening of the dollar versus most other currencies.

Second, a reminder that we are comping the impact of last year's leap year. The extra day contributed approximately $1,500,000,000 of additional net sales across our businesses in Q1 twenty twenty four or about 120 basis points to the year over year growth rate, which impacted all segments. Q1 operating income is expected to be between $14,000,000,000 and $18,000,000,000 This guidance includes the estimated impact of certain updates to the useful life of our fixed assets. I'll provide a bit more detail in a moment, but on an aggregate basis, we estimate this will decrease full year 2025 operating income by approximately $400,000,000 for the assets on our balance sheet as of 12/31/2024. First in Q4, we completed a useful life study for our servers and networking equipment and observed an increased pace of technology development, particularly in the area of artificial intelligence and machine learning.

As a result, we're decreasing the useful life for a subset of our servers and networking equipment from six years to five years, beginning in January 2025. We anticipate this will decrease full year 2025 operating income by approximately $700,000,000 In addition, we also early retired a subset of our servers and network equipment. We recorded a Q4 twenty twenty four expense of approximately $920,000,000 from accelerated depreciation and related charges and expect this will also decrease full year 2025 operating income by approximately $600,000,000 Both of these server and network equipment useful life changes primarily impact our AWS segment. Lastly, we also completed a useful life study for certain types of heavy equipment used in our fulfillment centers and are increasing useful life from ten years to thirteen years beginning in January 2025. We anticipate this will increase full year 2025 operating income by approximately $900,000,000 As we turn the page to 2025, we're energized by the great work our teams have delivered.

We'll remain focused on driving an even better customer experience, and we 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.

Our first question comes from the line of Mark Mahaney with Evercore ISI. Please proceed with your question.

Thanks. Two quick questions. So Brian, that's $100,000,000,000 CapEx we should think about in twenty twenty five billion dollars And then Andy, were there any would you describe that AWS growth is being currently moderated down by supply constraints? Do you see those across the industry or do you see those materially impacting AWS today? Thank you very much.

So I'll take both those, Sandy. On the CapEx side, as Brian mentioned earlier, we spent $26,300,000,000 in CapEx in Q4. And I think that is reasonably representative of what you can expect in annualized CapEx rate in 2025. The vast majority of that CapEx spend is on AI for AWS. It's the way the AWS business works and the way the cash cycle works is that the faster we grow, the more CapEx we end up spending because we have to procure data center and hardware and chips and networking gear ahead of when we're able to monetize it.

We don't procure it unless we see significant signals of demand. And so when AWS is expanding its CapEx, particularly in what we think is one of these once in a lifetime type of business opportunities like AI represents. I think it's actually quite a good sign medium to long term for the AWS business. And I actually think that, spending this capital to pursue this opportunity, which from our perspective, we think virtually every application that we know of today is going to be reinvented with AI inside of it and with inference being a core building block just like compute and storage and database. If you believe that plus that altogether new experiences that we've only dreamed about are going to actually be available to us with AI.

AI represents for sure the biggest opportunity since cloud and probably the biggest technology shift and opportunity in business since the Internet. And so I think that both our business, our customers and shareholders will be happy medium to long term that we're pursuing the capital opportunity and the business opportunity in AI. We also have CapEx that we're spending this year in our stores business really with an aim towards trying to continue to improve the delivery speed and our cost to serve. And so you'll see us expanding the number of same day facilities from where we are right now. You'll also see us expand the number of delivery stations that we have in rural areas, so we can get items to people who live in rural areas much more quickly.

And then a pretty significant investment as well on robotics and automation, so we can take our costs to serve down and continue to improve our productivity. So that's the CapEx piece. I think the second question you asked, Mark, is really around AWS growth and whether this is being moderated down at all by supply chain constraints. It is hard to complain when you have a multi billion dollar annualized revenue run rate business in AI like we do, and it's growing triple digit percentage year over year. It's hard to complain.

However, it is true that we could be growing faster if not for some of the constraints on capacity. And they come in the form of, I would say, chips from our third party partners come in a little bit slower than before with a lot of midstream changes that take a little bit of time to get the hardware actually yielding the percentage healthy and high quality servers we expect. It comes with our own big new launch of our own hardware and our own chips in Trainium two, which we just went to general availability at re:Invent, but the majority of the volume is coming in really over the next couple of quarters, the next few months. It comes in the form of power constraints where I think the world is still constrained on power from where I think we all believe we could serve customers if we were unconstrained. There are some components in the supply chain like motherboards too that are a little bit short in supply for various types of servers.

So, you know, I think the team has done a really good job scrapping and providing capacity for our customers so they can grow. We're still growing at a pretty reasonable clip as I mentioned earlier, but I do think we could be growing faster if we were on constraint. I predict those constraints really start to relax in the second half of twenty twenty five. And as I said, I think we could be growing faster even though we're growing a pretty good clip today.

And our next question is from Eric Sheridan with Goldman Sachs. Please proceed.

Thanks so much for taking the question. I'll just ask one that's building on Mark's questions there. Andy, when you think about the news that came out of China over the last couple of weeks and think longer term about bending the cost curve lower with AI. I understood the commentary around CapEx for 2025. But when you look at where you sit in the industry, the move towards open source elements of custom silicon, how do you think about bending the cost curve in either speeding up or ample time deployment to market or possibly higher returns on capital for AI?

Well, I'd say a few things because there are a few questions built into that. First of all, I think like many others, we were impressed with what DeepSeq has done. I think in part impressed with some of the training techniques, primarily in flipping the sequencing of reinforcement training, reinforcement learning being earlier without the human in the loop. We thought that was interesting ahead of the supervised fine tuning. We also thought some of the inference optimizations they did were also quite interesting.

Amazon (AMZN) Q4 2024 Earnings Call Transcript

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