Amazon has reported strong earnings in its first quarter of 2025, but calmed expectations after predicting lower-than-expected guidance compared to Wall Street’s estimates.
The e-commerce retail giant saw its net income rise to $17.1 billion compared to $10.4 billion in the year prior.
Additionally, net sales went up by 9% to $155.67 billion, with sales in the North American segment rising by 8% to $92.9 billion.
In particular, Amazon’s advertising segment was successful, with revenue soaring by 19% to $13.9 billion.
Andy Jassy, Amazon’s President and CEO, said: “We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences.”
The retailer ended the quarter with $1.59 per diluted share, up from $0.98 per diluted share in the year prior.
Amazon’s success was driven by multiple initiatives that were launched in 2025, aimed at enhancing customer experience.
Recently, Amazon launched a generative AI Interests tool to help customers search for products and partnered with global athleisure brand Adidas to launch its products on the Amazon Buy With Prime program.
Also, the e-commerce giant was recently named the US’ most persuasive retailer, according to data from a YouGov survey.
Moving forward, the company expects to achieve net sales of between $159 billion and $164 billion, which is an increase of 7% and 11% year-over-year.
The forecast is below analysts’ expectations, and Amazon mentioned that its outlook is subject to uncertainty due to changing trade policies and recessionary fears.
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