Analyst(s): Futurum Research
Publication Date: November 4, 2025
Amazon’s Q3 FY 2025 results highlight AWS reacceleration to 20% YoY growth as AI demand scales, alongside resilient North America and International segments. Management emphasized accelerating infrastructure capacity, agentic AI progress, and retail/ads flywheel effects heading into the holiday quarter.
What is Covered in this Article:
- Amazon’s Q3 FY 2025 financial results
- AWS reacceleration, capacity, and backlog trends
- Retail and ads AI flywheel across Stores and DSP
- Agents, Bedrock, and custom silicon strategy
- Guidance and Final Thoughts
The News: Amazon.com, Inc. (NASDAQ: AMZN) reported Q3 FY 2025 revenue of $180.2 billion, up 13% year-on-year (YoY), versus Wall Street consensus of $177.8 billion (+1.3% vs. consensus). Segment revenue: North America $106.3 billion (+11% YoY), International $40.9 billion (+14% YoY), and Amazon Web Services (AWS) $33.0 billion (+20% YoY). Operating income was stable YoY at $17.4 billion (operating margin 9.7% vs. 11.0% YoY), including $4.3 billion of special charges; excluding these, operating income would have been $21.7 billion. Net income was $21.2 billion (+38% YoY) and diluted EPS was $1.95 (+36% YoY).
“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Andy Jassy, President and CEO, Amazon. “AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY. We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity – adding more than 3.8 gigawatts in the past 12 months.”
Amazon Q3 FY 2025 Earnings: AWS Reaccelerates, Retail and Ads Grow
Analyst Take: Q3 FY 2025 marked a clear reacceleration in AWS growth to 20% YoY, supported by AI workload demand and accelerated capacity additions, while retail and advertising delivered steady, broad-based expansion. Management’s emphasis on custom silicon (Trainium), agentic AI infrastructure (AgentCore), and Bedrock inference economics suggests a multi-quarter runway for AI-driven growth. In Stores, faster delivery, grocery same-day expansion, and AI-assisted shopping (Rufus) are reinforcing engagement and conversion, while Ads benefited from scaled audiences and expanded media inventory. Elevated cash CapEx and special charges weighed on margins, but the investment posture aligns with visible demand signals and a robust AWS backlog.
AWS Reacceleration, Capacity, and Backlog
AWS revenue growth accelerated to 20% YoY, with quarterly revenue up $2.1 billion sequentially and an annualized run rate of approximately $132 billion. Management cited rising AI and core services demand alongside more capacity coming online as key drivers. AWS added more than 3.8 gigawatts of power capacity over the last 12 months and plans at least another 1 gigawatt in Q4, with total capacity expected to double again by FY 2027. Backlog reached $200 billion at quarter-end, and October saw additional unannounced deals exceeding total Q3 deal volume, indicating strengthening pipeline visibility. Large-scale AI training capacity was highlighted by Project Rainier, a cluster with nearly 500,000 Trainium2 chips (scaling to 1 million), already in use by Anthropic. Together, these signals point to sustained AWS demand supported by accelerating capacity and a deepening AI workload mix.
Retail and Ads: AI Flywheel Accelerates Stores and Monetization
In Stores, execution focused on selection expansion, same-day delivery of perishables, and network regionalization to drive speed and cost efficiency. Grocery same-day is now available in over 1,000 U.S. cities and towns with a plan to reach more than 2,300 locations by year-end, and rural Same-Day/Next-Day access increased 60% over four months. Rufus, Amazon’s AI shopping assistant, served 250 million customers this year; shoppers using Rufus are 60% more likely to complete a purchase, and management expects over $10 billion in incremental annualized sales. Ads revenue reached $17.7 billion in Q3 (+22% YoY), supported by a full-funnel DSP strategy and expanded inventory access via partnerships with Netflix, Spotify, and SiriusXM. Third-party seller unit mix reached 62%, supported by 1.3 million sellers using generative AI tools to create listings, contributing to selection breadth and conversion. The combined impact of AI-driven discovery, faster fulfillment, and scaled media monetization supports durable retail engagement and elevated advertising yield.
Agents, Bedrock, and Custom Silicon Strategy
Amazon’s AI strategy spans first-party silicon, model access, and agentic infrastructure, creating an integrated path from training to inference and application deployment. Trainium2 is fully subscribed and a multi-billion-dollar business, with Trainium3 preview slated for late FY 2025 and broader volumes in early FY 2026; management targets further price-performance gains as workloads scale. Bedrock is positioned as a unified inference layer, with management noting the majority of Bedrock token usage already running on Trainium, supporting cost efficiency at scale. In addition, developer tooling and migration agents are gaining traction—Kiro (agentic coding IDE) surpassed 100,000 developers in its initial days and more than doubled since; Transform saved 700,000 hours of manual migration effort year to date. This stack coherence is designed to translate AI interest into durable consumption and services growth over the next several quarters.
Guidance and Final Thoughts
Q4 FY 2025 revenue guidance of $206.0 billion to $213.0 billion signals confidence in the peak season, while operating income guidance of $21.0 billion to $26.0 billion reflects the investment intensity and the potential for operating leverage as capacity is monetized. Management reiterated the elevated capital expenditures (CapEx)—$34.2 billion in Q3 and $89.9 billion year-to-date—with a full-year outlook of approximately $125 billion in FY 2025 and higher in FY 2026, prioritizing AI infrastructure and core services. While the Q3 operating margin of 9.7% reflected $4.3 billion in special charges and rising depreciation from assets placed into service, the underlying demand backdrop and backlog trends point to margin variability with potential upside as utilization scales. Continued AWS growth, AI monetization, and a solid contribution from retail and advertising are seen as key positive factors supporting the overall growth flywheel into FY 2026.
See the full press release on Amazon’s Q3 FY 2025 financial results on the company website.
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