AMAZON INC. Overview
1.1 Positioning statement
Amazon is no longer usefully described as a retailer. On FY2025 revenue of USD 716.9 billion it is the largest company in the world by sales, but the economics of the enterprise are governed by three businesses that did not exist at the IPO: Amazon Web Services, which produced 18.0% of FY2025 revenue and 57.0% of FY2025 consolidated segment operating income; advertising services, which grew 22% in FY2025 to USD 68.6 billion at a margin the company declines to disclose but which is structurally superior to first-party retail; and a third-party marketplace that now carries 61% of paid units and monetizes through commissions, fulfilment fees, and ads rather than inventory arbitrage. Retail is the customer-acquisition engine and the logistics moat; AWS and advertising are the profit pools. As of mid-2026 the company is executing the largest single-year capital programme in corporate history — approximately USD 220 billion of 2026 capital expenditure, raised from USD 200 billion in February — financed by more than USD 89 billion of 2026 bond issuance, and has driven trailing free cash flow to an outflow of USD 7.6 billion. The strategic wager is that AI compute demand is durable enough to convert that capital base into a second AWS-scale margin engine.
2.1 The company's own characterization
Amazon states in its earnings releases that it is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. The company describes its aspiration as being Earth's Most Customer-Centric Company, Earth's Best Employer, and Earth's Safest Place to Work, and identifies as its own inventions customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge (Q2 2026 press release, "About Amazon").
In the FY2025 Form 10-K, management frames its financial model around a distinction between variable and fixed costs. Variable costs — product and content costs, payment processing, picking, packing, transportation, customer service, the costs required to run AWS, and a portion of marketing — change directly with volume. Fixed costs — technology infrastructure, store and web-services development, and fulfilment network build-out — are driven by the timing of capacity needs, geographic expansion, and category expansion. The stated objective is to reduce variable cost per unit while leveraging fixed costs across a growing revenue base.
2.2 Independent characterization
Amazon operates four economically distinct businesses inside a three-segment reporting structure.
First-party retail. Amazon buys inventory and sells it at gross revenue recognition. FY2025 online stores revenue was USD 269.3 billion and physical stores USD 22.6 billion. This is a low-margin, working-capital-negative business: at FY2025 year-end, days payable outstanding of approximately 125 days against days inventory outstanding of approximately 39 days produced a cash conversion cycle of roughly negative 51 days, meaning suppliers finance the inventory. Amazon was named the lowest-priced US retailer by Profitero for a ninth consecutive year, with online prices averaging 14% below other major US retailers (FY2025 Q4 press release; reiterated in Q2 2026).
Third-party marketplace and fulfilment services. Amazon rents its demand aggregation, fulfilment, and delivery network to independent sellers, recognizing only commissions and fees as revenue. FY2025 third-party seller services revenue was USD 172.2 billion, and third-party sellers accounted for 61% of worldwide paid units in Q4 2025 and Q2 2026. The revenue is a fraction of the gross merchandise value transacted, but it is materially higher-margin than first-party retail because Amazon carries no inventory risk.
Advertising. FY2025 advertising services revenue was USD 68.6 billion, up 22%; Q2 2026 revenue was USD 19.8 billion, up 26%. This is sponsored product placement, display, and video inventory sold to sellers, vendors, publishers and authors. It is a demand-side monopoly rent on the marketplace: sellers who need visibility on Amazon have no substitute channel of comparable intent quality. Amazon does not disclose advertising segment margins, but the business is embedded in North America and International segment income and is the principal reason North America operating margin expanded from 2.6% in FY2021 to 7.0% in FY2025.
Amazon Web Services. FY2025 revenue USD 128.7 billion at a 35.4% operating margin; Q2 2026 revenue USD 42.2 billion at a 39.4% operating margin and a USD 169 billion annualized run rate. AWS sells compute, storage, database, networking, analytics, machine learning, and — increasingly — foundation-model access and custom silicon. It is a consumption-priced utility with multi-year committed contracts, and it is the single most important variable in the equity story.
2.3 Revenue model mix
Source: FY2021–FY2025 Forms 10-K, Consolidated Statements of Operations. The mix shift from products to services is the single clearest structural signal in Amazon's accounts: 41.3% of FY2025 revenue was gross-recognized product sales versus 51.5% four years earlier. Every incremental point of services mix carries higher gross margin.
2.4 Customer types and end-markets
Amazon defines four customer constituencies in its filings: consumers, sellers, developers/enterprises, and content creators. Consumer end-markets span effectively all general merchandise categories plus grocery, pharmacy, and digital media. Seller customers are small and medium businesses and brands worldwide. Enterprise customers of AWS span every vertical: FY2025 and H1 2026 disclosed AWS agreements include OpenAI, Visa, BlackRock, United Airlines, DoorDash, Salesforce, Adobe, Thomson Reuters, AT&T, S&P Global, HSBC, London Stock Exchange Group, Accenture, CrowdStrike, the U.S. Air Force, Warner Bros. Discovery, Vodafone, Siemens Energy, Ryanair, Pinterest, Snowflake, Moody's, Danske Bank, Fiserv, WPP Enterprise Solutions, the NBA, the NFL, the WNBA, the New York State Office of Information Technology Services, the State of Iowa, the University of South Florida, and The University of Utah.
2.5 Value chain position
Amazon is unusually vertically integrated for a platform business. It owns the demand aggregation layer (amazon.com and country storefronts), the merchandising and pricing layer, the fulfilment network (fulfilment centres, sortation centres, delivery stations), the middle-mile and last-mile transportation network (Amazon Air, line-haul trucking, Delivery Service Partners, Amazon Flex), the payment layer, the advertising exchange, the cloud infrastructure layer including custom silicon (Graviton, Trainium, Inferentia, Nitro), the device layer (Echo, Fire, Kindle, Ring, eero, Blink), the content layer (Prime Video, MGM, Amazon Music, Audible, Twitch), and — pending completion of the Globalstar acquisition — a satellite connectivity layer. In FY2026 it began selling the fulfilment layer itself as a standalone product through Amazon Supply Chain Services, with Procter & Gamble, 3M, Lands' End, and American Eagle Outfitters as launch customers.
Financial Narrative
All figures from Forms 10-K for FY2021 through FY2025 and the Q4 2025 earnings release of 5 February 2026.
6.1 Income statement
6.2 Margin analysis
6.3 Balance sheet
Amazon does not present a separate current-portion-of-long-term-debt line on the face of its balance sheet; short-term borrowings are included within "Accrued expenses and other." The short-term/long-term debt split at each year end is therefore not separately disclosed on the balance sheet face and must be read from the debt footnote. Goodwill and acquired intangibles are not disaggregated on the face of the balance sheet beyond the goodwill line; intangibles are included in "Other assets."
6.4 Cash flow
6.5 Ratio analysis
Return on invested capital is calculated as operating income multiplied by one minus the effective tax rate, divided by average of opening and closing long-term debt plus stockholders' equity. Working capital day ratios use period-end balances rather than averages. These are analyst-derived measures, not company-reported figures.
6.6 Commentary on trends, inflections and drivers
Gross margin. The 826-basis-point expansion from 42.0% in FY2021 to 50.3% in FY2025 is the most important line in the accounts and is entirely mix-driven. Advertising grew from USD 31.2 billion to USD 68.6 billion and AWS from USD 62.2 billion to USD 128.7 billion over the period, while gross-recognized product sales fell from 51.5% to 41.3% of revenue. FY2025 alone delivered 140 basis points of expansion.
The FY2022 inflection. FY2022 was the trough: a USD 2.7 billion net loss, a 2.4% operating margin, and negative free cash flow of USD 11.6 billion. The loss was not operational — it was principally driven by USD 16.8 billion of negative "other income (expense), net," dominated by mark-downs on the Rivian equity stake. The operational problem was over-built fulfilment capacity following the pandemic demand pull-forward, which management addressed through the 2022–2023 cost programme and regionalization of the US fulfilment network.
The FY2023–FY2024 margin recovery. Operating income rose from USD 12.2 billion to USD 68.6 billion in two years, a 5.6-fold increase on 24% cumulative revenue growth. The drivers were the regionalized network reducing cost to serve, headcount discipline, advertising scale, and AWS margin recovery from 27.1% in FY2023 to 37.0% in FY2024 following the useful-life extension on servers and the exhaustion of the enterprise cost-optimization cycle.
The FY2025 free cash flow inflection. This is the critical development for anyone underwriting the equity. Operating cash flow grew 20% to USD 139.5 billion — an excellent outcome. But capital expenditure net of proceeds rose 65% to USD 128.3 billion, compressing free cash flow from USD 38.2 billion to USD 11.2 billion. By the twelve months ended 30 June 2026, trailing capital expenditure had reached USD 169.0 billion, up 64% year over year, and trailing free cash flow had turned to an outflow of USD 7.6 billion against an inflow of USD 18.2 billion a year earlier. Amazon has voluntarily converted itself from a free-cash-flow compounder into a capital-intensive infrastructure builder.
FY2025 net income quality. Reported net income of USD 77.7 billion grew 31% while operating income grew only 17%. The gap is USD 15.2 billion of non-operating "other income (expense), net," driven principally by upward revaluation of private equity stakes, chiefly Anthropic. Investors should treat FY2025 operating income of USD 80.0 billion, not net income, as the measure of the underlying business. Q4 2025 operating income of USD 25.0 billion also absorbed three special charges totalling approximately USD 2.4 billion: USD 1.1 billion for resolution of Italian tax disputes in the stores business and a lawsuit settlement, USD 730 million of estimated severance, and USD 610 million of asset impairments primarily related to physical stores. Adjusted for these, Q4 operating income would have been USD 27.4 billion.
Balance sheet transformation. Total assets grew from USD 624.9 billion to USD 818.0 billion in FY2025 and to USD 1,095.7 billion by 30 June 2026 — a 75% increase in eighteen months. Property and equipment net rose from USD 252.7 billion to USD 446.0 billion over the same window. Long-term debt roughly doubled from USD 65.6 billion at FY2025 year end to USD 128.9 billion at 30 June 2026, and "Other assets" ballooned from USD 122.6 billion to USD 284.1 billion, largely reflecting the marked-up Anthropic position.
Interim 2026 performance. Q1 2026 delivered net sales of USD 181.5 billion (+17%), operating income of USD 23.9 billion at a then-record 13.1% margin, and net income of USD 30.3 billion. Q2 2026 delivered net sales of USD 200.6 billion (+20%, the first quarter above USD 200 billion), operating income of USD 27.5 billion (+43%) at a 13.7% margin, and net income of USD 62.6 billion (USD 5.75 diluted). Q2 net income includes USD 53.4 billion of non-operating pre-tax other income, primarily from the Anthropic investments — approximately 85% of reported net income. Trailing twelve-month operating income reached USD 93.7 billion at a 12.1% margin; trailing net sales reached USD 775.7 billion.
7. SEGMENTAL AND GEOGRAPHIC REVENUE MAPPING
7.1 Revenue by disaggregated product and service category
7.2 Category growth rates
7.3 Geographic revenue
Amazon attributes net sales to countries primarily based on country-focused online and physical stores or, for AWS, the selling entity. It discloses country-level revenue only for countries representing a significant portion of consolidated net sales — the United States, Germany, the United Kingdom and Japan.
FY2023 and FY2024 country figures are as reported in the FY2024 Form 10-K. FY2025 country figures are derived from the geographic percentages disclosed in the FY2025 Form 10-K (United States 68.3%, Germany 6.4%, United Kingdom 6.0%, Japan 4.3%, others 15.0%) applied to consolidated FY2025 net sales; third-party data providers report Germany at approximately USD 45.9 billion and the United Kingdom at approximately USD 43.2 billion for FY2025, consistent with this derivation. Exact FY2025 country-level dollar figures beyond these disclosed percentages are not separately disclosed in the earnings release.
7.4 Geographic property and equipment
Source: FY2025 Form 10-K segment note. Except for the United States, no single country accounted for 10% or more of consolidated property and equipment, net and operating leases. The 33% single-year increase in US asset base reflects the AI data centre buildout.
7.5 Fastest-growing and declining regions
The fastest-growing disclosed market on a percentage basis in FY2025 was the "rest of world" aggregate at approximately 14.7% growth, driven by India, Mexico, Brazil, the Middle East and Turkey — markets where Amazon Now, Amazon Haul and price investment have been concentrated. The United Kingdom grew fastest among named countries at approximately 13.6%, followed by Germany at approximately 12.2% and Japan at approximately 12.5%; note that Japanese and European figures benefit from a favourable currency translation of USD 4.4 billion at the consolidated level in FY2025. The United States grew approximately 11.8%. No disclosed region declined in FY2025. International segment operating income declined 21% in Q4 2025 to USD 1.0 billion, driven by price investment in international stores and quick-commerce spending; management explicitly guided in February 2026 that Q1 2026 would absorb further "investment in quick commerce and even sharper prices in our international stores business," a deliberate margin sacrifice for share.
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Segment Overview
| Segment | Contents |
|---|---|
North America | Retail sales of consumer products (including from sellers) and subscriptions through North America-focused online and physical stores; export sales from those stores; advertising and other service revenue attributable to those stores; Whole Foods Market; Amazon Fresh; Amazon Go; Amazon Pharmacy; One Medical; Amazon Now in the US |
International | The same activities conducted through internationally focused online stores, including export sales from those stores to customers in the US, Mexico and Canada; excludes export sales from North America-focused stores |
AWS | Global sales of compute, storage, database, analytics, machine learning, foundation models, custom silicon capacity and other services to start-ups, enterprises, government agencies and academic institutions |
Revenue by Segment
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
North America net sales (USD Mn) | 279,833 | 315,880 | 352,828 | 387,497 | 426,305 |
International net sales (USD Mn) | 127,787 | 118,007 | 131,200 | 142,906 | 161,894 |
AWS net sales (USD Mn) | 62,202 | 80,096 | 90,757 | 107,556 | 128,725 |
Consolidated net sales (USD Mn) | 469,822 | 513,983 | 574,785 | 637,959 | 716,924 |
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View Subscription PlansResults by Segment
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
North America operating income (USD Mn) | 7,271 | -2,847 | 14,877 | 24,967 | 29,619 |
International operating income (USD Mn) | -924 | -7,746 | -2,656 | 3,792 | 4,750 |
AWS operating income (USD Mn) | 18,532 | 22,841 | 24,631 | 39,834 | 45,606 |
Consolidated operating income (USD Mn) | 24,879 | 12,248 | 36,852 | 68,593 | 79,975 |
Segment Margins & Growth (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
North America operating margin (%) | 2.60 | -0.90 | 4.22 | 6.44 | 6.95 |
International operating margin (%) | -0.72 | -6.56 | -2.02 | 2.65 | 2.93 |
AWS operating margin (%) | 29.79 | 28.52 | 27.14 | 37.04 | 35.43 |
Consolidated operating margin (%) | 5.30 | 2.38 | 6.41 | 10.75 | 11.16 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
North America net sales growth (%) | 18.3 | 12.9 | 11.7 | 9.8 | 10.0 |
International net sales growth (%) | 21.5 | -7.6 | 11.2 | 8.9 | 13.3 |
AWS net sales growth (%) | 37.1 | 28.8 | 13.3 | 18.5 | 19.7 |
North America share of consolidated revenue (%) | 59.6 | 61.5 | 61.4 | 60.7 | 59.5 |
International share of consolidated revenue (%) | 27.2 | 23.0 | 22.8 | 22.4 | 22.6 |
AWS share of consolidated revenue (%) | 13.2 | 15.6 | 15.8 | 16.9 | 18.0 |
AWS share of consolidated operating income (%) | 74.5 | 186.5 | 66.8 | 58.1 | 57.0 |
Revenue by Segment and Segment Margins & Growth (%)
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
North America net sales (USD Mn) | 92,887 | 100,068 | 106,267 | 127,083 | 104,143 | 116,177 |
International net sales (USD Mn) | 33,513 | 36,761 | 40,896 | 50,724 | 39,789 | 42,197 |
AWS net sales (USD Mn) | 29,267 | 30,873 | 33,006 | 35,579 | 37,587 | 42,232 |
North America operating income (USD Mn) | 5,841 | 7,517 | 4,789 | 11,472 | 8,267 | 9,123 |
International operating income (USD Mn) | 1,017 | 1,494 | 1,199 | 1,040 | 1,424 | 1,717 |
AWS operating income (USD Mn) | 11,547 | 10,160 | 11,434 | 12,465 | 14,161 | 16,621 |
AWS operating margin (%) | 39.5 | 32.9 | 34.6 | 35.0 | 37.7 | 39.4 |
AWS net sales growth ex-FX (%) | 17 | 17 | 20 | 24 | 28 | 37 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales (USD Mn) | 469,822 | 513,983 | 574,785 | 637,959 | 716,924 |
Cost of sales (USD Mn) | 272,344 | 288,831 | 304,739 | 326,288 | 356,414 |
Gross profit (USD Mn) | 197,478 | 225,152 | 270,046 | 311,671 | 360,510 |
Fulfillment expense (USD Mn) | 75,111 | 84,299 | 90,619 | 98,505 | 109,074 |
Technology and infrastructure expense (USD Mn) | 56,052 | 73,213 | 85,622 | 88,544 | 108,521 |
Sales and marketing expense (USD Mn) | 32,551 | 42,238 | 44,370 | 43,907 | 47,129 |
General and administrative expense (USD Mn) | 8,823 | 11,891 | 11,816 | 11,359 | 11,172 |
Other operating expense net (USD Mn) | 38 | 1,263 | 767 | 763 | 4,639 |
Operating income (USD Mn) | 24,879 | 12,248 | 36,852 | 68,593 | 79,975 |
Depreciation and amortization (USD Mn) | 34,433 | 41,921 | 48,663 | 52,795 | 65,756 |
EBITDA (USD Mn) | 59,312 | 54,169 | 85,515 | 121,388 | 145,731 |
Interest income (USD Mn) | 448 | 989 | 2,949 | 4,677 | 4,381 |
Interest expense (USD Mn) | -1,809 | -2,367 | -3,182 | -2,406 | -2,274 |
Other income expense net (USD Mn) | 14,633 | -16,806 | 938 | -2,250 | 15,229 |
Income before income taxes (USD Mn) | 38,151 | -5,936 | 37,557 | 68,614 | 97,311 |
Provision for income taxes (USD Mn) | -4,791 | 3,217 | -7,120 | -9,265 | -19,087 |
Net income (USD Mn) | 33,364 | -2,722 | 30,425 | 59,248 | 77,670 |
Basic EPS (USD) | 3.30 | -0.27 | 2.95 | 5.66 | 7.29 |
Diluted EPS (USD) | 3.24 | -0.27 | 2.90 | 5.53 | 7.17 |
Dividends per share (USD) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Weighted average diluted shares (M) | 10,296 | 10,189 | 10,492 | 10,721 | 10,827 |
Stock-based compensation (USD Mn) | 12,757 | 19,621 | 24,023 | 22,011 | 19,467 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 42.03 | 43.81 | 46.98 | 48.85 | 50.29 |
Operating margin (%) | 5.30 | 2.38 | 6.41 | 10.75 | 11.16 |
EBITDA margin (%) | 12.62 | 10.54 | 14.88 | 19.03 | 20.33 |
Net margin (%) | 7.10 | -0.53 | 5.29 | 9.29 | 10.83 |
Effective tax rate (%) | 12.6 | -54.2 | 19.0 | 13.5 | 19.6 |
Net sales growth (%) | 21.7 | 9.4 | 11.8 | 11.0 | 12.4 |
Revenue CAGR FY2021 to FY2025 (%) | 11.1 | 11.1 | 11.1 | 11.1 | 11.1 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash and cash equivalents (USD Mn) | 36,220 | 53,888 | 73,387 | 78,779 | 86,810 |
Marketable securities (USD Mn) | 59,829 | 16,138 | 13,393 | 22,423 | 36,219 |
Cash and marketable securities (USD Mn) | 96,049 | 70,026 | 86,780 | 101,202 | 123,029 |
Inventories (USD Mn) | 32,640 | 34,405 | 33,318 | 34,214 | 38,325 |
Accounts receivable net and other (USD Mn) | 32,891 | 42,360 | 52,253 | 55,451 | 67,729 |
Total current assets (USD Mn) | 161,580 | 146,791 | 172,351 | 190,867 | 229,083 |
Property and equipment net (USD Mn) | 160,281 | 186,715 | 204,177 | 252,665 | 357,025 |
Operating lease right-of-use assets (USD Mn) | 56,082 | 66,123 | 72,513 | 76,141 | 86,054 |
Goodwill (USD Mn) | 15,371 | 20,288 | 22,789 | 23,074 | 23,273 |
Other assets (USD Mn) | 27,235 | 42,758 | 56,024 | 82,147 | 122,607 |
Total assets (USD Mn) | 420,549 | 462,675 | 527,854 | 624,894 | 818,042 |
Accounts payable (USD Mn) | 78,664 | 79,600 | 84,981 | 94,363 | 121,909 |
Accrued expenses and other (USD Mn) | 51,775 | 62,566 | 64,709 | 66,965 | 75,520 |
Unearned revenue (USD Mn) | 11,827 | 13,227 | 15,227 | 18,103 | 20,576 |
Total current liabilities (USD Mn) | 142,266 | 155,393 | 164,917 | 179,431 | 218,005 |
Long-term lease liabilities (USD Mn) | 67,651 | 72,968 | 77,297 | 78,277 | 87,339 |
Long-term debt (USD Mn) | 48,744 | 67,150 | 58,314 | 52,623 | 65,648 |
Other long-term liabilities (USD Mn) | 23,643 | 21,121 | 25,451 | 28,593 | 35,985 |
Net debt as long-term debt less cash and securities (USD Mn) | -47,305 | -2,876 | -28,466 | -48,579 | -57,381 |
Total stockholders equity (USD Mn) | 138,245 | 146,043 | 201,875 | 285,970 | 411,065 |
Working capital (USD Mn) | 19,314 | -8,602 | 7,434 | 11,436 | 11,078 |
Cash Flow and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net cash from operating activities (USD Mn) | 46,327 | 46,752 | 84,946 | 115,877 | 139,514 |
Purchases of property and equipment (USD Mn) | 61,053 | 63,645 | 52,729 | 82,999 | 131,819 |
Proceeds from property and equipment sales and incentives (USD Mn) | 5,657 | 5,324 | 4,596 | 5,341 | 3,499 |
Capital expenditure net of proceeds (USD Mn) | 55,396 | 58,321 | 48,133 | 77,658 | 128,320 |
Free cash flow (USD Mn) | -9,069 | -11,569 | 36,813 | 38,219 | 11,194 |
Dividends paid (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Common stock repurchased (USD Mn) | 0 | 6,000 | 0 | 0 | 0 |
Proceeds from long-term debt (USD Mn) | 19,003 | 21,166 | 0 | 0 | 15,673 |
Repayments of long-term debt (USD Mn) | -1,590 | -1,258 | -3,676 | -9,182 | -5,021 |
Capital expenditure as percent of net sales (%) | 13.0 | 12.4 | 9.2 | 13.0 | 18.4 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Return on equity on average equity (%) | 28.8 | -1.9 | 17.5 | 24.3 | 22.3 |
Return on assets on average assets (%) | 9.0 | -0.6 | 6.1 | 10.3 | 10.8 |
Return on invested capital estimated (%) | 13.9 | 4.8 | 12.6 | 19.8 | 15.8 |
Current ratio (x) | 1.14 | 0.94 | 1.05 | 1.06 | 1.05 |
Long-term debt to equity (x) | 0.35 | 0.46 | 0.29 | 0.18 | 0.16 |
Net debt to EBITDA (x) | -0.80 | -0.05 | -0.33 | -0.40 | -0.39 |
Interest coverage on operating income (x) | 13.8 | 5.2 | 11.6 | 28.5 | 35.2 |
Asset turnover on average assets (x) | 1.27 | 1.16 | 1.16 | 1.11 | 0.99 |
Days inventory outstanding (days) | 43.7 | 43.5 | 39.9 | 38.3 | 39.3 |
Days sales outstanding (days) | 25.6 | 30.1 | 33.2 | 31.7 | 34.5 |
Days payable outstanding (days) | 105.4 | 100.6 | 101.8 | 105.6 | 124.9 |
Cash conversion cycle (days) | -36.1 | -27.0 | -28.7 | -35.6 | -51.1 |
Key Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Online stores (USD Mn) | 222,075 | 220,004 | 231,872 | 247,026 | 269,287 |
Physical stores (USD Mn) | 17,075 | 18,963 | 20,030 | 21,455 | 22,561 |
Third-party seller services (USD Mn) | 103,366 | 117,716 | 140,053 | 156,148 | 172,162 |
Advertising services (USD Mn) | 31,160 | 37,739 | 46,906 | 56,214 | 68,635 |
Subscription services (USD Mn) | 31,768 | 35,218 | 40,209 | 44,370 | 49,619 |
AWS (USD Mn) | 62,202 | 80,096 | 90,757 | 107,556 | 128,725 |
Other (USD Mn) | 2,176 | 4,247 | 4,958 | 5,190 | 5,935 |
Total net sales (USD Mn) | 469,822 | 513,983 | 574,785 | 637,959 | 716,924 |
Margin Analysis (%) (FY2022–FY2025)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Online stores growth (%) | -0.9 | 5.4 | 6.5 | 9.0 |
Physical stores growth (%) | 11.1 | 5.6 | 7.1 | 5.2 |
Third-party seller services growth (%) | 13.9 | 19.0 | 11.5 | 10.3 |
Advertising services growth (%) | 21.1 | 24.3 | 19.8 | 22.1 |
Subscription services growth (%) | 10.9 | 14.2 | 10.3 | 11.8 |
AWS growth (%) | 28.8 | 13.3 | 18.5 | 19.7 |
Other growth (%) | 95.2 | 16.7 | 4.7 | 14.4 |
Key Financials and Margin Analysis (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
United States net sales (USD Mn) | 395,637 | 438,049 | 489,659 |
Germany net sales (USD Mn) | 37,588 | 40,904 | 45,883 |
United Kingdom net sales (USD Mn) | 33,591 | 37,860 | 43,015 |
Japan net sales (USD Mn) | 26,002 | 27,391 | 30,828 |
Rest of world net sales (USD Mn) | 81,967 | 93,755 | 107,539 |
Total net sales (USD Mn) | 574,785 | 637,959 | 716,924 |
United States share of total (%) | 68.8 | 68.7 | 68.3 |
Germany share of total (%) | 6.5 | 6.4 | 6.4 |
United Kingdom share of total (%) | 5.8 | 5.9 | 6.0 |
Japan share of total (%) | 4.5 | 4.3 | 4.3 |
Rest of world share of total (%) | 14.3 | 14.7 | 15.0 |
Key Financials (FY2023–FY2025)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
United States property equipment net and operating leases (USD Mn) | 196,000 | 241,600 | 321,900 |
Non-United States property equipment net and operating leases (USD Mn) | 80,700 | 87,200 | 121,200 |
Valuation Snapshot
| Metric | Value | As of |
|---|---|---|
Share price (USD) | 274.60 | 10 August 2026 |
Market capitalization (USD Bn) | 2960 to 2997 | 7 to 10 August 2026 |
Peak market capitalization | Above 3000 | 3 August 2026 |
52-week range (USD) | 196.00 to 287.20 | 10 August 2026 |
All-time high intraday prior to August (USD) | 278.56 | 5 May 2026 |
Post-Q2 after-hours move (%) | 9.15 | 30 July 2026 |
One-year market capitalization change (%) | 24.87 | 7 August 2026 |
Average daily volume (shares M) | 62.56 | 10 August 2026 |
Price to earnings, trailing twelve months (x) | 22.1 to 22.8 | USD 274.60 against TTM diluted EPS of USD 12.44 through Q2 2026 |
Price to earnings adjusted for non-operating gains (x) | Materially higher | TTM EPS is inflated by roughly USD 53.4 billion of Q2 and USD 16.8 billion of Q1 pre-tax Anthropic gains; on operating income of USD 93.7 billion TTM the earnings multiple on core operations is several times the headline figure |
Enterprise value (USD Bn) | Approximately 2966 | Market cap plus USD 128.9 billion long-term debt less USD 123.0 billion cash and marketable securities at 30 June 2026 |
Enterprise value to sales, trailing twelve months (x) | 3.8 | Against TTM net sales of USD 775.7 billion |
Enterprise value to EBITDA, trailing twelve months (x) | 17.6 | Against TTM EBITDA of approximately USD 168.9 billion (operating income USD 93.7 billion plus D&A USD 75.2 billion) |
Price to book (x) | 5.4 | Against stockholders' equity of USD 551.6 billion at 30 June 2026 |
Consensus rating | Strong Buy | S&P Global, 63 covering analysts, as of mid-2026 |
Average 12-month price target (USD) | 313 | S&P Global, 63 analysts |
Buy ratings | 63 of 63 rated Buy or better, with no Sell ratings and a handful of Holds | S&P Global |
Price target range (USD) | 207 to 370 | Aggregated broker targets, July 2026 |
Consensus 2026 EPS growth expectation (%) | Approximately 82 | Aggregated estimates, August 2026 |
Market Valuation and Share Price
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Approximate year-end market capitalization (USD Bn) | 1,691 | 856 | 1,570 | 2,306 | 2,510 |
Approximate year-end share price (USD) | 166.72 | 84.00 | 151.94 | 219.39 | 233.86 |
Credit Ratings
| Agency | Rating | Basis |
|---|---|---|
Moody's | A1 | July 2026 bond offering |
S&P Global | AA | July 2026 bond offering |
Fitch | AA- | July 2026 bond offering |
2026 Issuance Event Details
| 2026 issuance event | Date | Size | Detail |
|---|---|---|---|
US bond offering | March 2026 | Approximately USD 37 billion | New-issue concession of approximately 10 to 12 basis points, above the year's approximately 4 basis point average |
Canadian bonds and bank loans | March 2026 | Approximately USD 31.5 billion combined | — |
Canadian bond offering | June 2026 | Approximately USD 10 billion (approximately C USD 14 billion) | — |
US bond offering, eight tranches | 7 July 2026 | At least USD 25 billion | Maturities 3 to 40 years; spreads 65 to 145 basis points over Treasuries; peak orders USD 62 billion, final book approximately USD 41 billion (1.6x covered); managed by Barclays, Goldman Sachs and others. Amazon informed underwriters it will issue no further debt in 2026 |
Cumulative 2026 issuance | Through July 2026 | Exceeds USD 89 billion | Against approximately USD 54 billion raised in US and European bonds earlier in 2026 plus the Canadian and July offerings |
Capital Markets
| Item | Timing | What to watch |
|---|---|---|
Q3 2026 results | Late October 2026 | Whether AWS growth holds above 35%; whether operating margin sustains above 13%; capex guidance for 2027 |
Q4 2026 and FY2026 results | Early February 2027 | 2027 capital expenditure guidance — the single most important number Amazon will disclose |
Amazon Leo commercial launch | Second half 2026 | Initial service go-live; subscriber and enterprise contract disclosure; FCC extension ruling on the July 2026 milestone |
Globalstar closing | 2,027 | FCC approval; whether the USD 110 million adjustment is triggered |
Anthropic IPO | Timing unconfirmed | The S-1 will disclose Amazon's exact ownership percentage for the first time; a strong debut validates the carrying value, a weak one reverses through the income statement |
Free cash flow trajectory | Quarterly | Whether the TTM outflow deepens beyond USD 7.6 billion or begins to narrow |
De Coster opt-out close | 31 August 2026 | Final class size |
FTC pretrial rulings | Through Q1 2027 | Summary judgment scope; any narrowing of claims |
Memory chip pricing | Ongoing | The stated cause of the capex increase from USD 200 billion to USD 220 billion |
AWS leadership continuity | Ongoing | Whether the Treadwell transition disrupts EC2, Bedrock or SageMaker roadmaps |
Google Cloud growth | Quarterly | Whether the 82% versus 36.7% growth gap narrows or widens |
International segment margin | Quarterly | Whether quick-commerce and price investment continue to suppress a 2.9% margin |
Zoox paid service | Second half 2026 | First revenue; geographic scope |
2027 proxy season | Spring 2027 | Whether the data centre climate proposal, at 18.4% support in 2026, gains further ground |
Executive Leadership
Board of Directors
| Director | Role | Votes for | Votes against | Notes |
|---|---|---|---|---|
Jeffrey P. Bezos | Executive Chair; Founder | 7,470,968,677 | 393,242,148 | Founded the company 1994; CEO to July 2021; largest individual shareholder |
Andrew R. Jassy | President and Chief Executive Officer | 7,803,190,739 | 65,688,660 | Joined Amazon 1997; founded and led AWS; CEO since 5 July 2021 |
Edith W. Cooper | Independent director | 7,644,518,512 | 221,722,802 | Former EVP and Global Head of Human Capital Management, Goldman Sachs |
Jamie S. Gorelick | Independent director | 7,298,413,009 | 566,479,319 | Partner, WilmerHale; former US Deputy Attorney General |
Daniel P. Huttenlocher | Independent director | 7,781,614,899 | 83,580,848 | Dean, MIT Schwarzman College of Computing |
Andrew Y. Ng | Independent director | 7,426,600,997 | 438,607,163 | Founder of DeepLearning.AI and Landing AI; former Chief Scientist, Baidu |
Indra K. Nooyi | Independent director | 7,724,900,429 | 137,471,449 | Former Chairman and CEO, PepsiCo |
Jonathan J. Rubinstein | Independent director | 7,078,042,809 | 785,068,955 | Former CEO, Palm; former SVP iPod Division, Apple |
Brad D. Smith | Independent director | 7,812,423,713 | 52,993,544 | President, Marshall University; former Chairman and CEO, Intuit |
Patricia Q. Stonesifer | Independent director | 7,347,480,399 | 516,023,466 | Former President and CEO, Martha's Table; founding CEO, Gates Foundation |
Wendell P. Weeks | Independent director; Lead Independent Director | 7,751,614,351 | 114,022,271 | Chairman and CEO, Corning Incorporated |
Executive Leadership Team
| Executive | Title |
|---|---|
Andy Jassy | President and Chief Executive Officer |
Brian Olsavsky | Senior Vice President and Chief Financial Officer |
Doug Herrington | CEO, Worldwide Amazon Stores |
Matt Garman | CEO, Amazon Web Services |
Aicha Evans | CEO, Zoox |
David Zapolsky | Chief Global Affairs and Legal Officer |
Beth Galetti | SVP, People eXperience and Technology |
Peter DeSantis | SVP, Foundational AI Models, Custom Silicon, Quantum Computing |
Dave Treadwell | SVP, AWS Compute and ML Services (effective 1 August 2026) |
Prasad Kalyanaraman | VP, AWS Infrastructure Services (added to S-team April 2026) |
Colleen Aubrey | SVP, AWS Applied AI Solutions |
John Felton | SVP, AWS CFO |
Swami Sivasubramanian | VP, Agentic AI |
Russell Grandinetti | SVP, International Stores |
Christine Beauchamp | SVP, North America Stores |
Amit Agarwal | SVP, Emerging Markets and Selling Partner Services |
Udit Madan | SVP, Worldwide Operations |
Panos Panay | SVP, Devices and Services |
Paul Kotas | SVP, Advertising, IMDb, and Grand Challenge |
Mike Hopkins | SVP, Amazon Video and Studios |
Neil Lindsay | SVP, Amazon Health Services |
Drew Herdener | SVP, Communications and Corporate Responsibility |
Peter Krawiec | SVP, Worldwide Corporate and Business Development |
James Hamilton | SVP and Distinguished Engineer |
Steve Boom | VP, Audio, Twitch, and Games |
Steve Schmidt | Chief Security Officer |
Candi Castleberry | VP, Amazon eXperience and Upskilling |
Board & Management Changes
| Date | Change |
|---|---|
22 April 2026 | Prasad Kalyanaraman, VP of AWS Infrastructure Services, added to the S-team; Dave Brown promoted to Senior Vice President |
| 2026 | David Luan, VP of Agents and head of the San Francisco AI lab, resigned |
1 August 2026 | Dave Brown departed after nearly 19 years; succeeded as SVP, AWS Compute and ML Services by Dave Treadwell, previously SVP of eCommerce Foundation |
June 2026 | Puneet Gupta appointed Director, Head of Amazon Devices India |
Directors' Remuneration
| Item | Detail |
|---|---|
CEO total compensation, FY2025 Summary Compensation Table | USD 2.1 million |
Last equity award to the CEO | 2,021 |
CEO FY2025 realized compensation | Increased versus FY2024 on stock price performance, partially offset by a 5% decrease in the number of RSUs vesting during the year |
Named executive officers' FY2025 realized compensation | Attributable primarily to vesting of RSU awards granted in prior years |
Director cash compensation | None. Directors receive no cash compensation for service as directors or committee members; reasonable expenses are reimbursed. Bezos and Jassy receive no additional compensation for board service |
Say-on-pay vote, 20 May 2026 | 7,391,737,243 for; 470,466,853 against; 26,155,268 abstain — approximately 93.7% support of votes cast |
Major Shareholders
| Holder | Shares (millions) | Approximate stake (%) | Basis |
|---|---|---|---|
Jeffrey P. Bezos | 950.43 | 8.80 | 2026 Proxy Statement, as of 24 February 2026 |
BlackRock, Inc. | 735.56 | 6.84 | Aggregated market data, mid-May 2026 |
Vanguard Capital Management | 631.18 | 5.87 | Aggregated market data, mid-May 2026 |
State Street Corporation | 390.45 | 3.63 | Aggregated market data, mid-May 2026 |
FMR LLC (Fidelity) | 358.70 | 3.33 | Aggregated market data, mid-May 2026 |
Geode Capital Management | 233.23 | 2.17 | Aggregated market data, mid-May 2026 |
Morgan Stanley | 173.93 | 1.62 | Aggregated market data, mid-May 2026 |
JPMorgan Chase | 168.94 | 1.57 | Aggregated market data, mid-May 2026 |
Vanguard Portfolio Management | 127.01 | 1.18 | Aggregated market data, mid-May 2026 |
T. Rowe Price Associates | 123.00 | 1.14 | Aggregated market data, mid-May 2026 |
Governance Detail
| Category | Initiative | Date | Detail |
|---|---|---|---|
Capital programme | 2026 capital expenditure plan | Feb 2026, raised Jul 2026 | Approximately USD 200 billion guided February, raised to approximately USD 220 billion on the Q2 call, from USD 131.8 billion in FY2025; the majority to support AI and AWS |
AI partnership | Anthropic investment | Sep 2023 to Apr 2026 | Cumulative USD 13 billion invested with a commitment to invest up to USD 20 billion more on commercial milestones; Anthropic has committed to spend more than USD 100 billion on Amazon chips and cloud over the next decade |
Custom silicon | Trainium and Graviton roadmap | Ongoing | Trainium2 fully subscribed at 1.4 million chips; Trainium3 in production with nearly all supply committed by mid-2026; Trainium4 targeted for 2027; Graviton5 generally available Q2 2026 |
AI infrastructure | Project Rainier | 2025–2026 | More than 500,000 Trainium2 chips; described by Amazon as the world's largest operational AI compute cluster |
AI services | Bedrock, AgentCore, Nova, frontier agents | 2025–2026 | Model marketplace, agent infrastructure, first-party model family, and autonomous agents for coding, security and DevOps |
Services investment | AWS Forward Deployed Engineering | Q2 2026 | USD 1 billion to embed AI engineers with customers for days-not-months agentic deployment |
Public sector | AWS Secret Cloud for Industry; IC cloud credits | Q2 2026 | Generally available for defence contractors with Northrop Grumman first; up to USD 1 billion in credits committed to US Intelligence Community migration |
Connectivity | Amazon Leo | 2025–2026 | At least USD 10 billion committed; approximately 390 satellites in orbit; FCC authorization for approximately 7,700; initial commercial service targeted for 2026 |
Connectivity M&A | Globalstar acquisition | Apr 2026 | Approximately USD 11.6 billion to acquire satellite operations, infrastructure and global spectrum licences; concurrent Apple agreement |
Autonomy | Zoox commercialization | Q2 2026 | NHTSA Part 555 exemption to charge for rides; first purpose-built robotaxi to receive it |
Geographic | India | Dec 2025 and Jun 2026 | USD 35 billion committed December 2025, raised by USD 13 billion in June 2026 to USD 48 billion across 2026–2030; AWS capacity expansion in Mumbai and Hyderabad |
Logistics monetization | Amazon Supply Chain Services | Q2 2026 | External sale of Amazon's supply chain; P&G, 3M, Lands' End, American Eagle Outfitters as launch customers |
Quick commerce | Amazon Now expansion | 2025–2026 | Nine countries, 250-plus cities and towns; explicit management commentary that Q1 2026 operating income guidance included quick-commerce investment |
Cost programme | Corporate delayering | Oct 2025 and Jan 2026 | Approximately 14,000 roles October 2025 (USD 1.8 billion severance), approximately 16,000 January 2026, roughly 30,000 cumulative — the largest reduction in company history |
US manufacturing | Corning fibre-optics agreement | 2026 | Approximately 1,000 advanced manufacturing jobs in North Carolina |
Workforce | Future Ready 2030 fund | 2026 | USD 1 billion committed to the Career Choice employee education programme |
Sustainability | Water positive and nuclear procurement | 2025–2026 | 75% progress toward the 2030 water-positive data centre goal; water-positive status achieved in India ahead of the 2027 target; global data centres over 7x more water-efficient than industry average; small modular reactor investment with X-energy targeting 5 GW by 2039; 1,900 MW carbon-free nuclear agreement with Talen Energy through 2042 |
Governance Overview
| Metric | Q3 2026 guidance |
|---|---|
Net sales (USD Bn) | 197.0 to 202.0 |
Net sales growth versus Q3 2025 (%) | 9 to 12 |
Net sales growth excluding Prime Day timing (%) | Approximately 400 basis points higher than reported guidance |
Foreign exchange impact (basis points) | Approximately negative 80 |
Operating income (USD Bn) | 22.5 to 26.5 |
Q3 2025 comparative operating income (USD Bn) | 17.4 |
Competitive Landscape
Competitors by Segment
| Segment | Named competitors |
|---|---|
North America and International retail | Walmart, Costco, Target, The Home Depot, Kroger, Best Buy, Alibaba Group, PDD Holdings (Temu), Shein, MercadoLibre, Coupang, Flipkart (Walmart), JD.com, eBay, Etsy, Wayfair, Chewy, Shopify (as merchant infrastructure), Instacart, DoorDash, Zepto and Blinkit in Indian quick commerce |
Cloud infrastructure | Microsoft Azure, Google Cloud Platform, Alibaba Cloud, Oracle Cloud Infrastructure, IBM Cloud, Tencent Cloud, CoreWeave and the emerging "neocloud" GPU-rental operators (Synergy notes that nine neocloud operators now rank among the top 40 cloud providers) |
AI models and agentic platforms | Microsoft with OpenAI, Google DeepMind, Meta, NVIDIA (both supplier and platform competitor via DGX Cloud), Anthropic itself as a direct-sales channel, Databricks, Snowflake |
AI silicon | NVIDIA, AMD, Google TPU, Microsoft Maia, Broadcom (as merchant ASIC partner to rivals), Intel |
Digital advertising | Google, Meta, TikTok, Walmart Connect, Instacart Ads, Microsoft Advertising, Criteo, The Trade Desk |
Streaming and content | Netflix, Disney, Warner Bros. Discovery, Comcast/NBCUniversal, Paramount, Apple TV, YouTube |
Devices and smart home | Apple, Google, Samsung, Roku, ADT, SimpliSafe |
Satellite connectivity | SpaceX Starlink (more than 10,000 satellites and over 9–10 million subscribers), EchoStar, Viasat, Eutelsat OneWeb, AST SpaceMobile |
Autonomous vehicles | Waymo, Tesla, Cruise (wound down), Motional, Baidu Apollo Go, WeRide, Pony.ai |
Healthcare | CVS Health, Walgreens, UnitedHealth Optum, Cigna Evernorth, Hims and Hers, Costco pharmacy |
Logistics as a service | UPS, FedEx, DHL, XPO, Maersk, Flexport, ShipBob |
Peer Comparison FY2025
| Metric | Q4 2025 | Q1 2026 |
|---|---|---|
AWS share of cloud infrastructure services (%) | 28 | 28 |
Microsoft Azure share (%) | 21 | 21 |
Google Cloud share (%) | 14 | 14 |
Big Three combined share (%) | 63 | 63 |
Total quarterly cloud infrastructure spend (USD Bn) | Not stated | 129 |
Total market year-over-year growth (%) | Not stated | 35 |
Peer Comparison FY2025 (AWS Q1 2026–AWS Q2 2026)
| Metric | AWS Q1 2026 | AWS Q2 2026 | Azure most recent reported | Google Cloud most recent reported |
|---|---|---|---|---|
Revenue growth year over year (%) | 28 | 37 | 40 to 43 | 63 to 82 |
Peer Comparison FY2025 (Annual)
| Metric | Amazon FY2025 | Alphabet FY2025 | Microsoft FY2025 ended June 2025 | Apple FY2025 ended September 2025 |
|---|---|---|---|---|
Revenue (USD Bn) | 716.9 | 402.8 | 281.7 | 416.2 |
Operating income (USD Bn) | 80.0 | Not stated here | 128.5 | Not stated here |
Operating margin (%) | 11.2 | Not stated here | 45.6 | Not stated here |
Net income (USD Bn) | 77.7 | Not stated here | 101.8 | Not stated here |
Recent Developments
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