Amazon’s October 2025 Shockers: AI Ambitions, $2.5B Settlement and a Surging Stock
Financial Performance & Earnings Highlights Amazon entered Q4 on solid financial footing. In the last reported quarter (Q2 2025), the company beat expectations with $167.7 billion in revenue (+13% YoY) and $18.2 billion in net profit ts2.tech. Operating income more than doubled year-on-year, reflecting cost cuts and efficiency gains. Two high-margin engines stood out: Amazon Web Services (AWS) posted ~$30.8B in sales (up ~17% YoY) ts2.tech, and Amazon’s advertising unit (“Other” revenue) grew ~22% as it closes in on a $40B annual ad business ts2.tech. These segments carry ~30–35% operating margins, far higher than the core retail division ts2.tech, and