Regionally, North American segment sales rose 11 percent year-on-year to $106.3 billion. International segment sales rose 14 percent year-on-year to $40.9 billion, or increased 10 percent excluding changes in exchange rates.
Amazon Inc reported a 13 percent year-on-year increase in third-quarter 2025 net sales to $180.2 billion, with operating income of $17.4 billion, or $21.7 billion excluding legal and severance charges. Net income grew to $21.2 billion. Operating cash flow rose 16 percent to $130.7 billion, while free cash flow fell to $14.8 billion. Fourth-quarter sales are projected between $206 billion and $213 billion.
Operating income was $17.4 billion in the third quarter. Third-quarter 2025 operating income includes two special charges: $2.5 billion related to a legal settlement with the Federal Trade Commission and $1.8 billion in estimated severance costs primarily related to planned feature eliminations. Without these charges, operating income would have been $21.7 billion.
The company reported North American segment operating income of $4.8 billion, which would have been $7.3 billion excluding a $2.5 billion legal settlement charge with the Federal Trade Commission. Both the North American and international results included estimated severance costs tied to planned role eliminations. The international segment posted operating income of $1.2 billion, while net income rose to $21.2 billion, or $1.95 per diluted share, Amazon said in a news release.
Operating cash flow increased 16 percent to $130.7 billion over the trailing twelve months, and free cash flow decreased to $14.8 billion over the trailing twelve months.
“We continue to see strong momentum and growth at Amazon as AI drives significant improvements in every corner of our business,” he said. Andy Jassy, Chairman and CEO of Amazon.
“We continue to see strong demand in AI and core infrastructure, and have been focused on accelerating capacity, adding more than 3.8 gigawatts in the last 12 months,” Jassy added. “In stores, we continue to see the benefits of innovating our fulfillment network, and we are on track to deliver to Prime members at the fastest speeds again this year, expand same-day delivery of perishable foods to more than 2,300 communities by the end of the year, and double the number of rural communities with access to same-day and next-day Amazon delivery.”
Amazon expanded same-day and next-day delivery by 60 percent in rural areas and expanded delivery of perishables to more than 1,000 U.S. locations (goal: more than 2,300 by 2025). Rufus, its AI-powered shopping assistant, was used by 250 million customers and increased purchase rates by 60 percent. ‘Help Me Decide’ and genAI tools for 1.3 million sellers improved listings and discovery. Multi-channel fulfillment has been extended to Walmart, Shopify and Shein, the statement added.
For the fourth quarter (Q4) of 2025, Amazon expects net sales to be between $206 billion and $213 billion, or to grow between 10 and 13 percent year-over-year. This guidance anticipates a favorable impact of approximately 190 basis points (bps) from exchange rates. Operating income is expected to be between $21 billion and $26 billion.
Fiber2Fashion News Desk (SG)
