
Amazon Delivers Strong Second Quarter Results
Highlights
- Revenue: $167.7 billion (+12% YoY)
- Operating income: $19.2 billion (+31% YoY)
- Free cash flow: $18.2 billion (trailing 12 months)
- Amazon Web Services (AWS) revenue: $30.9 billion (+17.5% YoY)
- Advertising revenue: $15.7 billion (+22% YoY)
- Third-party seller unit mix: 62% (highest ever)
Amazon has unveiled an impressive second quarter financial performance for 2025, demonstrating robust growth across its diverse business segments. The tech giant reported a 12% year-over-year increase in revenue, reaching $167.7 billion, boosted by continued strong demand for its wide range of services and products.
Operating and Financial Strengths
Operating income climbed a notable 31% from the same period last year to $19.2 billion. Extending its focus on efficient cash management, Amazon achieved a trailing 12-month free cash flow of $18.2 billion, reflecting effective strategies in fulfilling its operational and capital expenditures.
The substantial growth in operating margin, particularly in North America and International segments, stands out, supported by more cost-effective logistics and transportation networks.
AWS and Advertising Shine
Amazon Web Services (AWS) continued to bolster Amazon's financial foundation, generating $30.9 billion in revenue—a 17.5% increase from last year. With an impressive $123 billion annualized revenue run rate, AWS remains a formidable player in cloud services, despite facing capacity constraints amid strong demand. The company emphasizes its strategic advances in AI, with custom AI chips like Trainium2 underpinning AWS's robust infrastructure offerings.
Advertising revenue also saw a remarkable 22% rise, reaching $15.7 billion, underlining Amazon's success in leveraging its extensive audience base through varied advertising solutions across multiple platforms.
Marketplace and International Growth
Amazon's commitment to its third-party marketplace continues to pay dividends, with third-party sellers accounting for 62% of unit sales—the highest in company history. This growth highlights the expanding role of Amazon's partner network in driving product selection and competitiveness.
On the international front, revenue grew by 11% year-over-year, illustrating the successful execution of globally adaptable business strategies and operational efficiencies. Amazon's robust international performance is buoyed by improved transportation efficiencies and growing local market penetration.
In conclusion, Amazon's latest quarterly performance underscores its strong operational footing and capacity for delivering growth across its multifaceted business ecosystem, sustaining its trajectory of value creation for shareholders.