Q4 2025 Amazon.com Inc Earnings Call Transcript
Key Points
- Amazon.com Inc (AMZN) reported a 12% year-over-year increase in revenue, reaching $213.4 billion, excluding foreign exchange impacts.
- AWS growth accelerated to 24%, marking the fastest growth in 13 quarters, with AWS now a $142 billion annualized run rate business.
- Amazon's AI and custom silicon businesses, including Graviton and Trainium, are experiencing strong demand and significant growth, with Trainium being a multi-billion dollar annualized run rate business.
- The company continues to expand its selection, adding over 400 new beauty brands and new fashion brands, and is seeing strong growth in Everyday Essentials and grocery categories.
- Amazon Ads generated $21.3 billion in revenue for the quarter, growing 22% year over year, with strong growth in Prime Video ads and innovative AI-driven ad solutions.
- Amazon.com Inc (AMZN) faced three special charges totaling $2.4 billion, impacting operating income, including tax disputes, severance costs, and asset impairments.
- The company is experiencing significant capital expenditure demands, particularly in AWS, which could impact short-term profitability.
- There are concerns about the cost of AI chips and the need for better price performance, which Amazon is addressing with its custom silicon but remains a challenge.
- The retail business faces competitive pressures, requiring aggressive pricing strategies and investments to enhance customer experience and drive online retail demand.
- Amazon's rapid expansion and investment in areas like Amazon Leo and quick commerce could strain resources and require careful management to ensure long-term returns.
Thank you for standing by. Good day, everyone, and welcome to the Amazon.com fourth-quarter 2025 financial results teleconference. (Operator Instructions) Today's call is being recorded.
And for opening remarks, I will be turning the call over to the Vice President of Investor Relations, Mr. Dave Fildes. Thank you, sir. Please go ahead.
Hello, and welcome to our Q4 2025 financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO; and Brian Olsavsky, our CFO.
As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2024.
Our comments and responses to your questions reflect management's views as of today, February 5, 2026, only, and will include forward-looking statements.
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