Future Investing
Amazon (AMZN, AAPL, RDDT) Earnings Call | Q3 2025 Breakdown
10/30/2025, 7:11:38 PM
Economic Summary
- Amazon reported Q3 revenue of $180.2 billion, up 12% year-over-year ex-FX; operating income was $17.4 billion but would have exceeded $21 billion excluding a $2.5 billion FTC settlement and $1.8 billion severance, and trailing 12‑month free cash flow was $14.8 billion.
- AWS growth reaccelerated to 20.2% year-over-year (largest rate in 11 quarters) on a large ~$132 billion annualized run rate, signaling meaningful incremental revenue at scale and strong demand for cloud and AI workloads (AMZN).
- AWS backlog grew to $200 billion at quarter end and excludes October unannounced deals that together exceed Q3 deal volume, indicating near-term revenue visibility and momentum driven by AWS's broad functionality, security, and operational performance.
Bullish
- AWS reaccelerated to 20.2% year-over-year growth.
- $200B AWS backlog plus October deals implies strong future revenue visibility.
- AWS has broadest services and Gartner leadership, driving AI and core workload migration.
Bearish
- FTC settlement ($2.5B) and $1.8B severance reduced reported operating income.
- Very large revenue base makes sustaining high percentage growth difficult.
- Intense competition in cloud could pressure share gains and margins.
Bullish tickers
AMZN
Bearish tickers
AMZN
AMZN
Bullish
AWS reaccelerated to 20.2% YoY growth with a $200B backlog, broadest cloud services, and sustained leadership driving AI and core workload migration.
Bearish
Regulatory and restructuring charges (FTC settlement $2.5B, $1.8B severance) dented operating income; a very large revenue base and fierce cloud competition make sustaining high percentage growth challenging.
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