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 2025 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 Fildes. Thank you, sir. Please go ahead.

Hello, and welcome to our Q4 2025 financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO, and Brian Olsavsky, our CFO. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results, as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2024. Our comments and responses to your questions reflect management's views as of today, February fifth, 2026 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 and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, 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. Now I'll turn the call over to Andy.

Thanks, Dave. We're reporting $213.4 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates. Operating income was $25 billion, and trailing twelve-month free cash flow was $11.2 billion. We're seeing strong growth, and with the incremental opportunities available to us in areas like AI, chips, low Earth orbit satellites, quick commerce, and serving more consumers' everyday essentials needs, we have a chance to build an even more meaningful business at Amazon in the coming years, with strong return on invested capital, and we're investing to do so. We're already seeing strong demand in these areas, even in these early innings. I'll start with AWS.

AWS growth continued to accelerate to 24%, the fastest we've seen in 13 quarters, up $2.6 billion quarter-over-quarter and nearly $7 billion year-over-year. AWS is now a $142 billion annualized run rate business, and our chips business, inclusive of Graviton and Trainium, is now over $10 billion in annual revenue run rate, growing triple-digit percentages year-over-year. As a reminder, it's very different having 24% year-over-year growth on a $142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors. We continue to add more incremental revenue and capacity than others and extend our leadership position.

We're continuing to see strong growth in core non-AI workloads as enterprises return to focusing on moving infrastructure from on-premises to the cloud, along with AWS having the broadest functionality, strongest security and operational performance, and most vibrant partner ecosystem. AWS continues to earn most of the big enterprise and government transitions to cloud. Since our last call, we announced new agreements with OpenAI, Visa, NBA, BlackRock, Perplexity, Lyft, United Airlines, DoorDash, Salesforce, U.S. Air Force, Adobe, Thomson Reuters, AT&T, S&P Global, National Bank of Canada, the London Stock Exchange, Choice Hotels, Accenture, Indeed, HSBC, CrowdStrike, and many more. More of the top 500 U.S. startups use AWS as their primary cloud provider than the next two providers combined. We're adding significant EC2 core computing capacity each day, and the majority of that new compute is using our custom CPU silicon, Graviton.

Graviton is up to 40% more price-performant than leading x86 processors and is used expansively by over 90% of AWS's top 1,000 customers. Graviton itself is a multi-billion-dollar annualized run rate business, growing more than 50% year-over-year. We consistently see customers wanting to run their AI workloads where the rest of their applications and data are. We're also seeing that as customers run large AI workloads on AWS, they're adding to their core AWS footprint as well. But the biggest reason that AWS continues to gain AI share is our uniquely broad top-to-bottom AI stack functionality. In AI, we're doing what we've always done in AWS, solving customer challenges. Let me give you some examples. The first challenge is having a strong foundation model to generate inferences or predictions.

Customers are realizing, as they get further into AI, that they need choice, as different models are better on different dimensions. In fact, most sophisticated AI applications leverage multiple models... Whether customers want frontier models like Anthropic's Claude or open models like Mistral or Llama, frontier intelligence with lower cost and latency like Amazon Nova, or video and audio models like Twelve Labs or Nova Sonic. Amazon Bedrock makes it easy to use these models to run inference securely, scalably, and performantly. Bedrock is now a $ multi-billion-dollar annualized run rate business, and customer spend grew 60% quarter-over-quarter. The second challenge is how to hone the model for your application. Customers sometimes think if they have a good model, they will have a good AI application. That's not really true. It takes a lot of work to post-train and fine-tune a model for your application.

Our SageMaker AI service, along with fine-tuning tools in Bedrock, make this much easier for customers. A third challenge is how to have a custom version of a foundation model that best leverages a company's secret sauce, their own data. To date, companies have tried to shape models with their own data late in the process, usually with fine-tuning or post-training. There's debate in the industry about this, but we believe that enterprises will want models trained on their own data at an early stage, at pre-training, if possible, so their models have the best possible foundation for what matters most to each enterprise on which to learn and evolve. It's a little like teaching a child a foreign language early in their life. That becomes part of their learning foundation moving forward, and it makes it easier to pick up other languages later in their life.

To solve for this need, we just launched Nova Forge, which gives customers early checkpoints on our Amazon Nova models, allows them to securely mix their own proprietary data with the model's data in the pre-training stage, and enables their own uniquely customized versions of Nova, what we call Novellas, trained with their data early in the process. This will be very useful for companies as they build their own agents on top of a model. There is nothing else out there like this today and a potential game changer for companies. Another challenge is cost. I've said this many times, but if we want AI to be used as expansively as companies want, we have to make the cost of inference lower. A significant impediment today is the cost of AI chips.

Customers are starving for better price performance, and typically, and understandably, the dominant early leaders aren't in a hurry to make that happen. They have other priorities. It's why we've built our own custom silicon and Trainium, and it's really taken off. We've landed over 1.4 million Trainium2 chips, our fastest ramping chip launch ever. Trainium2 is 30%-40% more price performant than comparable GPUs and is a multi-billion dollar annualized revenue run rate business with 100,000+ companies using it, as Trainium is the majority underpinning of Bedrock usage today. We recently launched Trainium3, which is up to 40% more price performant than Trainium2. We're seeing very strong demand for Trainium3 and expect nearly all of our Trainium3 supply of chips to be committed by mid 2026. And though we're still building Trainium4, we're seeing very strong interest already.

Looking ahead, the primary way companies will get value from AI is with agents, some their own, some from others, and there are several customer challenges that we're well-positioned to solve. It's harder to build agents than it should be. For that, we've built Strands, a service enabling agents to be created from any model. Once agents are built, enterprises are apprehensive about deploying to production because these agents need to securely and scalably connect to compute, data, tools, memory, identity, policy governance, performance monitoring, and other elements. This is a new and hard problem where a solution has not existed until we launched Bedrock Agent Core. Customers are quite excited about Agent Core, and it's unlocking deployments.

Customers also want to leverage others' useful agents, and we've built several, including Kiro for coding, Amazon Q for knowledge workers to leverage their own data and analytics, AWS Transform for software migration, and Amazon Connect for call center operations. We continue adding new capabilities, and usage continues to grow quickly. For example, the number of developers using Kiro grew more than 150% quarter-over-quarter. In addition to agents that customers direct, customers are also becoming excited about agents that require less human interaction. They can be fully autonomous, run persistently for hours or days, scale out quickly, and remember context. At this past AWS re:Invent, we launched Frontier Agents to do that.

Kiro Autonomous Agents for coding tasks, AWS DevOps Agents for detecting and resolving operational issues, and AWS Security Agents for proactively securing applications throughout the development lifecycle, and they're already making a big difference for customers. We expect to invest about $200 billion in capital expenditures across Amazon, but predominantly in AWS, because we have very high demand. Customers really want AWS for core and AI workloads, and we're monetizing capacity as fast as we can install it. We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We're confident this will be the case here as well. I'll now turn to Stores.

We continue to expand selection, including more than 400 new beauty brands in the U.S. in 2025, like Bobbi Brown Cosmetics, Charlotte Tilbury, and Laura Mercier, and new fashion brands like Away, Converse, Diesel, Michael Kors, Nike, and The North Face. Our ultra-low-priced offering, Amazon Haul, grew selection to over 1 million items under $10 and expanded to serve customers in more than 25 countries and regions. We continue to see strong customer response to everyday essentials and Grocery. In 2025, everyday essentials grew nearly twice as fast as all other categories in the U.S., representing one out of every three units sold in our store. We've become a go-to grocery destination for over 150 million Americans, mostly through online shopping and Whole Foods.

With over $150 billion in gross sales, Amazon is clearly a large grocer at this point. Customers in thousands of U.S. cities and towns can now get perishables delivered same-day alongside millions of other items, and customers who use that service shop more than twice as often as customers who don't. We plan to expand to many more communities in 2026, and we also plan to open more than 100 new Whole Foods Market Stores over the next few years as we work to make grocery shopping easier, faster, and more affordable for customers. We remain committed to staying sharp on price and continue to meet or beat other retailers' prices. A recent study from Profitero showed that Amazon is America's lowest-priced retailer for the 9th straight year, 14% lower on average than other major online retailers.

We again achieved our fastest-ever delivery speeds for Prime members around the world in 2025. In the U.S., we delivered nearly 70% more items same-day than the year before. We also continue increasing speed for rural customers, with nearly 2 times more average monthly customers in rural areas receiving same-day delivery year-over-year. Same-day is our fastest-growing delivery offering, and nearly 100 million customers used it last year in the U.S. The team is continuing to innovate. We've launched Amazon Now in India, Mexico, and the UAE. Ultra-fast delivery on thousands of items in about 30 minutes or less, and we're testing it in several communities in the U.S. and U.K. It's early, but customers are loving it. For example, in India, customer response exceeded our most optimistic expectations, and we're seeing Prime members triple their shopping frequency once they start using it.

Expanding our same-day delivery coverage also leads to meaningfully later cutoff times for orders, which is a big deal for customers. For example, on Christmas Eve, customers in about 4,000 U.S. cities could order items up until midday and get them that same day. Another example is our recently launched feature, Add to Delivery, which enables Prime members in the U.S. to add items to their upcoming Amazon deliveries with just one tap without going through checkout again or paying additional shipping fees. Just six months after launch, Add to Delivery already makes up about 10% of all Prime volume fulfilled through the Amazon network each week.

While this seems simple on the surface, this feature is supported by a lot of invention, where we need to figure out in real time and with incredibly low latency, what items among Amazon's hundreds of millions of products are available to add to a customer's upcoming deliveries, surface them, find a way to include in their packages, and deliver within the same customer promise. The Stores team is also continuing to innovate and deliver for customers with AI. Our agentic AI shopping assistant, Rufus, is rapidly expanding. Rufus can research products, track prices, and auto-buy, purchasing a product in our store when it reaches your set price. It can also now shop tens of millions of items in other online Stores and make purchases for customers using our agentic Buy for Me feature. Last year, more than 300 million customers used Rufus.

In addition, customers used Lens, our AI-powered visual search tool, to find products with a phone's camera, a screenshot, or a barcode, and they did it 45% more year-over-year. Moving on to Amazon Ads, we're pleased with the continued strong growth across our full funnel offerings, generating $21.3 billion of revenue in the quarter and growing 22% year-over-year. Sponsored Products advertising in our store continues to be our largest ads offering, and a combination of trillions of shopping, browsing, and streaming signals with advanced AI and machine learning let us deliver highly relevant and useful ads for customers. We saw continued growth in Prime Video ads, which is now available in 16 countries and is contributing meaningfully to our revenue growth.

Prime Video has an average ad-supported audience of 315 million viewers globally, up from 200 million in early 2024. Our ads team is also innovating with AI. We recently announced our ads agent, which lets brands use AI to create and optimize campaigns at scale, implement effective campaign targeting, and quickly create actionable insights. Our creative agent lets advertisers research, brainstorm, and generate full-funnel ad campaigns from concept to completion using conversational guidance and Amazon's retail data, transforming what was a weeks-long process into just hours. We're also continuing to invent and see momentum in several other areas, and I'll mention just a few. Starting with live sports on Prime, the fourth season of Thursday Night Football broke more records.

It was our most-watched season ever, averaging more than 15 million viewers, a 16% year-over-year increase, and a third consecutive year of double-digit growth. The Packers versus Bears wild card game was the most-streamed NFL game in history, with 31.6 million viewers, clearing the prior mark by more than 4 million. We just made Alexa+ available to all customers in the U.S., free for Prime members and $19.99 a month for non-Prime members. Alexa+ continues to get even better and more capable, and we've added new ways to interact with Alexa, including a new chat experience at alexa.com, a redesigned mobile app, and new integrations with third-party devices like Samsung TVs and BMW cars. We've also added new features like the ability to answer a Ring doorbell on a customer's behalf and more ways to shop or manage a home.

Finally, the team is making rapid progress on Amazon Leo, which will bring connectivity to consumers, enterprises, and governments in places where they don't have broadband connectivity. Our enterprise-grade customer terminal, Leo Ultra, is the fastest satellite internet antenna ever built, delivering simultaneous download speeds of up to 1 Gbps and upload speeds of up to 400 Mbps. Leo will offer enterprise-grade performance and advanced encryption with secure private networking that bypasses public internet, connecting directly to AWS. We've launched 180 satellites, have more than 20 launches planned in 2026, more than 30 in 2027, and expect to launch commercially in 2026. We have dozens of commercial agreements already signed, including with AT&T, DIRECTV Latin America, JetBlue, and Australia's National Broadband Network, and have many more on the way.

It's been an action-packed year of innovation and progress, and we've hit the ground running in 2026. With that, I'll turn it over to Brian for a financial update.

Thanks, Andy. Starting with our top-line financial results. Worldwide revenue was $213.4 billion, a 12% increase year-over-year, excluding the 150 basis points favorable impact of foreign exchange. In Q4, we reported worldwide operating income of $25 billion. This operating income includes three special charges, which reduced operating income by $2.4 billion. The first charge of $1.1 billion is for the resolution of tax disputes associated with our Stores business in Italy and the settlement of a lawsuit. This charge primarily impacts our international segment and is largely recorded in the Fulfillment and other operating expense line items. Second charge of $730 million is for the estimated severance costs.

This charge impacts all three of our segments and is recorded primarily in the Fulfillment, Sales and Marketing, and Technology and Infrastructure expense line items. The third charge of $610 million is for asset impairments, primarily related to physical Stores. This charge primarily impacts the North America segment and is recorded in the other operating expense line. Moving on to our segment results. In the North America segment, fourth quarter revenue was $127.1 billion, an increase of 10% year-over-year. The international segment revenue was $50.7 billion, an increase of 11% year-over-year, excluding the impact of foreign exchange. Worldwide paid units grew 12% year-over-year, which is our highest quarterly growth rate in 2025.

The fourth quarter marked a strong finish to the year as we delivered for customers during the peak holiday season. Our sharp pricing, vast selection, and record-fast delivery speeds resonated with customers. They appreciated the convenience of receiving their items quickly, from gifts for family and friends to everyday essentials and perishable groceries. Our millions of global third-party sellers continue to be an important contributor to our broad selection. In Q4, worldwide third-party seller unit mix was 61%. We continue to invest in tools and services, including a comprehensive suite of AI tools, that help our selling partners manage and grow their businesses. Shifting to profitability, North America segment operating income was $11.5 billion, with an operating margin of 9%, up from an 8% margin in Q4 of 2024.

International segment operating income was $1 billion, with an operating margin of 2.1%. Excluding the impact of special charges mentioned earlier, the international segment operating margins also expanded year-over-year. We're pleased with the fulfillment network performance throughout the peak season. We made strong progress improving the cost structure of our network over the past few years. In the U.S., our regionalized network is operating at scale, and we've continued to make refinements. This regionalization has improved local inventory placement, leading to faster delivery and lower costs. Last year, U.S. Prime members received over 8 billion items the same or next day, up more than 30% year-over-year, with groceries and everyday essentials making up half of the total items.

For the third year in a row, globally, in 2025, we achieved both our fastest-ever delivery speeds for Prime members while also reducing our cost to serve. By leveraging our existing U.S. network, we can now deliver perishable groceries to customers in more than 2,300 cities and towns, all with same-day delivery. We saw significant adoption of this service throughout the year. When customers engage with our perishable offering, they demonstrate notably higher monthly spend compared to those who do not shop the category. We also see that customers shopping perishable groceries add three times more items to their same-day delivery orders. Looking ahead, we see further opportunity to enhance productivity in our global fulfillment network while delivering at faster speeds for customers.

We will continue optimizing inventory placement to drive down distance traveled, reduce touches per package, and improve package consolidation, as well as launch robotics and automation to increase efficiency and elevate the customer experience. Shifting to advertising. Advertising revenue grew 22% in the fourth quarter, and we added over $12 billion of incremental revenue in 2025 alone, as our full-funnel advertising approach of connecting brands with customers is resonating. Simplifying the advertiser experience to enable brands to better reach customers wherever they are. Moving next to our AWS segment. Revenue was $35.6 billion, and growth accelerated to 24% year-over-year. We added $2.6 billion in quarter-over-quarter revenue, and AWS now has an annualized revenue run rate of $142 billion.

This acceleration was driven by both core and AI services, as customers continue to modernize their infrastructure and migrate workloads to the cloud. Our AI offerings continue to resonate with customers, including our agentic capabilities.... This growth was helped in part by the more than 1 GW of capacity we added in Q4. In 2025, AWS added more data center capacity than any other company in the world. AWS operating income was $12.5 billion. We're seeing strong top-line growth while remaining focused on driving efficiencies across the business. This includes investing in software and process improvements to optimize server capacity, developing a more efficient network using our lower cost custom networking gear, and advancing custom silicon. At the same time, we've continued to rapidly develop products and services on behalf of customers.

As we've long said, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we're making at any point in time. Turning to cash flows. Our full year operating cash flow increased to under $39.5 billion in 2025, up 20% year-over-year, due primarily to improved operating income and changes in working capital. Now turning to our Q1 financial guidance. Q1 net sales are expected to be between $173.5 billion and $178.5 billion. This guidance anticipates a favorable impact of approximately 180 basis points from foreign exchange rates. As a reminder, global currencies can fluctuate during the quarter. Q1 operating income is expected to be between $16.5 billion and $21.5 billion.

A few things to mention on the operating income guidance. Within the North America segment, we do expect a year-over-year cost increase of approximately $1 billion related to Amazon Leo. We have more than 20 launches planned in 2026 and more than 30 in 2027, which means we're spending more on launching satellites each year. Select enterprise customers are testing Amazon Leo services now, and we expect a wider commercial rollout later this year. As a reminder, today, we do expense most of these Leo costs as incurred. We expect that later in the year, many of these costs, such as satellite manufacturing and launch services, will be capitalized. Within the international segment, we're continuing to invest more in our Stores business to enhance the customer experience and to encourage retail demand to move online more quickly.

This includes bringing faster delivery options, including Amazon Now, our service, which delivers to customers in 30 minutes or less. We're also working hard to stay sharp on pricing and seller fees, and there are countries where we've had to be more aggressive to meet or beat competitors' prices. We like these investments because they will delight customers, grow our business, and we believe they will generate long-term positive return on invested capital. As we enter 2026, I'm energized by our team's strong execution. I want to thank everyone across the company for their hard work on behalf of our customers. We remain focused on driving an even better customer experience, which is the only reliable way to create lasting value for our shareholders. With that, let's move on to your questions.

At this time, we will now open the call up for questions. We ask each caller to please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad. We ask that when you pose your question, you pick up your handset to provide optimum sound quality. Once again, to initiate a question, please press star, then one on your touchtone telephone at this time. Please hold while we poll for questions. Thank you. Our first question comes from the line of Mark Mahaney with Evercore ISI. Please proceed with your question.

Okay, thanks. I think, Brian, let me throw this to you or maybe to Andy. On the strong long-term return on invested capital, I think that's the debate in the market, today. So could you give us a little bit more insight into, you know, how you think investors will be able to see that? Either, talk about the duration of the CapEx cycle that you're going through now or, what we should see in terms of profitability levels. And maybe also talk about like, are there de minimis or minimum free cash flow generation levels that you don't want to go below as you go through this CapEx cycle? Just help us, you know, get to that, get to your level of confidence in having a strong long-term return on that invested capital. Thank you.

Yeah, sure, Mark, thank you. I'll start from a financial side. So on the investments we're making, as Andy said earlier, you know, we are putting into service with customers all capacity that we're getting, and it's immediately useful. And we're also seeing a long arc of additional revenue that we see from other customers and backlog and commitments that people are anxious to make with us, especially for AI services. So you can see that's working its way into our P&L, both through CapEx and also through our operating margin in AWS. AWS is 35% operating margin through Q4, up 40 basis points year-over-year. As we talked about before, that is gonna fluctuate over time.

It certainly has a headwind from the investments in AI and the depreciation on that CapEx, but we also work very hard to offset that with efficiencies and cost reductions. So, we will see how that develops over time. So, but, yeah, we see long, strong return on invested capital. We see strong demand for these services, and we continue to like the investments in this area.

I would add to that, you know, if you look at the capital we're spending and intend to spend this year, it's predominantly in AWS, and some of it is for our core workloads, which are non-AI workloads, 'cause they're growing at a faster rate than we anticipated. But most of it is in AI, and we just have a lot of growth and a lot of demand. When you're growing 24% year-over-year with an annualized revenue run rate of $142 billion, you're growing a lot. And what we're continuing to see is as fast as we install this capacity, this AI capacity, we are monetizing it. So it's just a very unusual opportunity.

You know, as I've shared a lot of times, I passionately believe that every customer experience that we know of today is going to be reinvented. With AI, there are gonna be a whole bunch of customer experiences that none of us ever imagined, that are gonna become the norms of how we all operate every day and what we use. And I think the other thing is that if you really wanna use AI in an expansive way, you need your data in the cloud, and you need your applications in the cloud. Those are all big tailwinds pushing people towards the cloud. So we're gonna invest aggressively here, and we're gonna invest to be the leader in this space, as we have been for the last number of years.

We have, I think, a fair bit of experience over the years in AWS of forecasting demand signals and doing it in such a way that we don't have a lot of wasted capacity and that we also have enough capacity to serve the demand that's there. And I think we've also proven with AWS over the years in how we build data centers and how we run them, and how we invent in there, if you think about our chips and our hardware, our networking gear, and how we've invented in power, that this isn't some sort of quixotic top-line grab. You know, we have confidence that we—that these investments will yield strong returns on invested capital. We've done that with our core AWS business, and I think that will very much be true here as well.

I think some of the things that you will see over time, in the AI space, you're gonna keep seeing all of the inference services, which is gonna be the majority of the long-term AI workloads, is gonna be inference. You're gonna see the inference keep getting optimized, you're gonna see higher utilization on those services. You'll see prices normalize over a period of time. And then I think the companies that have not just the excellence in infrastructure, but also the components that give them... that give customers better price performance and give those companies themselves better economics, are gonna have advantaged financials.

I think if you look, we're already off to a really good start having Trainium underneath the majority of our Bedrock service, and that's not just giving customers better prices, but it also gives us better economics. So we see that following the same sorts of patterns we saw in the early days of our core AWS investment. I'm very confident we're gonna have strong return on invested capital here.

The next question comes from the line of Doug Anmuth with JPMorgan. Please proceed with your question.

Thanks so much for taking the questions. Can you just talk about how Project Rainier is running with Anthropic after its first full quarter? And I think in the release, it talks about 500,000 chips, but a few months ago, you talked about getting to 1 million as well. So if you could clarify that. And then maybe just to follow up on Mark's question, are there any financial guardrails or governors in place that we should think about around the spend, just in terms of operating income growth or positive free cash flow? Thanks.

Yeah. I'll start with the Trainium piece. We are very excited about the growth that we see in Trainium and the future that we have there. You know, I think if you look at what's happened in the early innings of AI over the first few years, you see a lot of usage, but customers are really thirsty for better price performance. And Trainium has 30%-40% better price performance than comparable GPUs, so it's very compelling to customers. You mentioned Project Rainier. Anthropic is building their next... They're training their next cloud model on top of Trainium2, and that's what Project Rainier is. We talked about 500,000 chips there. You'll see that continuing to increase.

They're also using a fair bit of Trainium2 for other workloads and their own APIs beyond just Project Rainier. But Trainium is a multi-billion-dollar annualized run rate business at this point, and it's fully subscribed. And what you're also seeing is Trainium3, which is the next version of Trainium, which we just started shipping, that's 40% more price performant than Trainium2. And there is very substantial amount of interest there. We expect that nearly all of that supply will be committed by somewhere around the middle of this year, and we're just in the process of building Trainium4. There's very substantial interest in Trainium4, which is coming in 2027, and we're already having conversations about Trainium5.

So there is a lot of interest in Trainium at this point, and I think when you— You know, I, I think people know about our chips capability and our chips business, but I'm not sure folks realize how strong a chips company we've become over the last 10 years. You know, if you look at what we've done with Trainium, if you look at what we've done with Graviton, which is our CPU chip, which is about 40% better price performance than comparable X86 processors, 90% of the top 1,000 AWS customers are using Graviton very expansively. If you combine Trainium and Graviton, it's well over a $10 billion annualized run rate business. And it's still very early there. So I'm very optimistic about what we're seeing. We have, you know, the, the Project Rainier has gone very well.

Amazon (AMZN) Q4 2025 Earnings Call Transcript

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