Amazon beats expectations but warns of uncertainty and lowers estimates for 2025

Amazon, the company founded by Jeff Bezos, has announced its results for the second quarter of its current fiscal year. The tech giant posted revenues of $167.7 billion compared to $148 billion for the same period last year, a 12% increase and higher than analysts' estimates. Furthermore, the Silicon Valley giant recorded operating profits of $18.2 billion, higher than the $13.5 billion it achieved in the same period in 2024. Net income was $1.68 per share, compared to the market estimate of $1.33.

Likewise, revenue from Amazon Web Services, the company's cloud service, amounted to $30.873 billion, up from $26.281 billion in the same period last year. In half-year terms, this division of the firm has generated $60.14 billion, a figure higher than the first six months of 2024, when it earned $51.318 billion.

Meanwhile, advertising revenue rose to $15.695 billion, a figure lower than the $17.288 billion earned in the same period in 2024, but higher than the $14.900 billion estimated by the market.

However, the firm has revised its expectations for this year downward. According to the firm, these estimates are subject to substantial uncertainty. "Our results are inherently unpredictable and may be materially impacted by numerous factors," Amazon states, including tariffs, geopolitical conditions, and interest rates. Thus, the company forecast an operating profit of between $15.5 billion and $20.5 billion, a lower base range than the $17.4 billion reported in the third quarter of 2024. As a result, the company's after-hours profit fell by almost 3%.