Amazon (NASDAQ: AMZN) reported stronger-than-expected earnings for the first quarter of 2025, but the e-commerce and cloud giant’s light guidance for Q2 disappointed investors, causing shares to fall in after-hours trading.
Amazon Q1 2025 Earnings Highlights
Amazon posted impressive results for Q1 2025, beating Wall Street expectations on both earnings and revenue:
- Earnings per share (EPS): $0.98 vs. $0.84 expected
- Revenue: $143.3 billion vs. $142.5 billion expected
- AWS (Amazon Web Services) Revenue: $25.1 billion, showing solid growth year-over-year
CEO Andy Jassy noted strong performance across key business segments, including AWS, advertising, and international sales. He highlighted ongoing investments in AI infrastructure and customer experience as key growth drivers.
Light Q2 Guidance Sparks Concern
Despite the upbeat Q1 results, Amazon’s guidance for the second quarter raised concerns:
- Projected revenue: $148 billion to $153 billion
- Analyst expectation: $154.2 billion
The conservative outlook reflects caution around consumer spending, economic uncertainty, and ongoing investment in infrastructure and logistics.
Investor Reaction: Amazon Stock Dips
Following the earnings release, Amazon stock dropped over 4% in after-hours trading, as investors weighed the strong Q1 performance against the softer-than-expected Q2 forecast.
What This Means for Investors
While Amazon’s Q1 results underscore the company’s operational strength, the muted Q2 guidance suggests near-term headwinds. Investors may be cautious as Amazon continues to balance growth investments with profitability.
Key Takeaways
- Strong Q1 earnings beat estimates
- AWS and ad revenue remain key growth engines
- Q2 guidance below expectations triggers stock decline
- Long-term outlook remains positive with strategic focus on AI and efficiency
Conclusion
Amazon’s Q1 2025 earnings show the company is executing well in a challenging macro environment. However, the weaker Q2 outlook may signal a bumpy road ahead. Investors will be closely watching how Amazon navigates upcoming quarters, especially in cloud, AI, and consumer spending trends.