Amazon.com Inc (NASDAQ:AMZN) Reports Strong Q3 Earnings

Amazon.com Inc reported third-quarter earnings that surpassed analyst estimates, leading to a 5.7% increase in stock price during after-hours trading.

Earnings Overview

The e-commerce and cloud computing giant posted adjusted earnings per share (EPS) of $1.43, exceeding the analyst consensus of $1.14 by $0.29. The company's revenue for the quarter reached $158.9 billion, above the estimates of $157.25 billion, reflecting an 11% year-over-year growth.

Segment Performance

Amazon's cloud division, AWS, demonstrated robust growth, with sales increasing 19% year-over-year to $27.5 billion. In the North America segment, sales rose 9% to $95.5 billion, while the International segment saw a 12% increase in sales, totaling $35.9 billion.

Q4 Guidance

Despite these positive results, Amazon's fourth-quarter revenue guidance of $181.5 – 188.5 billion fell short of the $186.36 billion analyst consensus at the midpoint. The company anticipates operating income between $16.0 billion and $20.0 billion for Q4.

CEO Insights

"As we get into the holiday season, we're excited about what we have in store for customers," said Andy Jassy, Amazon President & CEO. "We kicked off the holiday season with our biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations."

Investment in AI

The company also emphasized its ongoing investment in AI capabilities, including the expansion of its generative AI shopping assistant, Rufus, to several new countries, along with the launch of new AI-powered features for sellers and advertisers.