Amazon.com Inc (NASDAQ:AMZN) delivered solid FY25 Q1 results, exceeding revenue and EPS expectations. However, guidance for Q2 came in softer than expected, and certain business lines showed signs of stagnation. AWS grew 17% year-over-year, a slower pace compared to previous quarters, likely reflecting the uneven nature of enterprise cloud spending. Still, AWS posted an operating margin near 40%, highlighted by Amazon’s ongoing success in driving operational efficiency through innovation.
Management offered limited commentary on the broader macroeconomic environment but noted that average selling prices on retail products have remained relatively stable. This may reflect front-loaded purchasing strategies ahead of expected tariff impacts, a trend that bears watching as existing inventories run down. Another area of concern was the continued slowdown in third-party seller growth which accounts for 25% of their revenue.
For more details, key highlights, and commentary, check out the high-level earnings summary.
