The Seattle-based firm additionally reported robust gross sales development for its distinguished cloud computing arm Amazon Internet Providers, it mentioned after the market closed on Thursday.
Nonetheless, uncertainty about President Donald Trump’s tariffs and shopper spending clouded Amazon’s outlook.
Trump’s commerce insurance policies — together with 145% tariffs on China — have challenged companies and threaten to boost costs. Nonetheless, massive firms like Amazon are anticipated to navigate the local weather higher than small retailers.
Amazon, together with many giant retailers and suppliers, have tried to beat the clock by bringing in overseas items earlier than Trump’s tariffs took impact. And Amazon’s president and CEO Andy Jassy informed analysts throughout its earnings name that a lot of its third celebration sellers did the identical. And due to that transfer, a good quantity of third-party sellers haven’t modified their pricing but, he mentioned.
Amazon vows to try to hold costs low
Jassy vowed that Amazon would do the whole lot it may to maintain costs low, and whereas he acknowledged challenges forward, he touted Amazon’s mannequin of huge choice that might assist it navigate this new local weather.
“When there are unsure environments, clients have a tendency to decide on the supplier they belief most,” Jassy informed analysts. “Given our actually broad choice, low pricing, and speedy supply, we now have emerged from these unsure eras with extra relative market phase share than we began, and higher arrange for the long run.”
On Friday, Trump can be ending a commerce exemption that allowed low-value shipments from China to bypass duties, an exemption that had given a bonus to China-founded e-commerce corporations, corresponding to Shein and Temu.
The brand new tariffs may benefit Amazon by growing prices for its rivals. However it might additionally have an effect on Chinese language sellers who join with American customers on the corporate’s procuring platform. Moreover, it may enhance costs on a recently-launched on-line storefront that Amazon set as much as ship low-cost merchandise straight from China. The storefront, known as Amazon Haul, was Amazon’s reply to Shein and Temu.
Amazon earnings breakdown
Amazon mentioned that it earned $17.13 billion, or $1.59 per share, for the quarter ended March 31. That is up from $10.43 billion, or 98 cents a share, within the year-ago interval.
Income rose 9% to $155.7 billion, up from $143.3 billion from the year-ago interval.
Gross sales for Amazon Internet companies rose 17% to $29.3 billion through the fiscal first quarter.
Amazon is without doubt one of the greatest gamers within the race round generative synthetic intelligence. Like different tech firms, it has elevated investments within the expertise and is spending billions to broaden information facilities that bolster AI and cloud computing. The corporate can be investing in its personal pc chips and people developed by Nvidia. It has additionally expanded its personal AI fashions and built-in generative AI into different elements of its enterprise.
Within the first quarter, Amazon reported spending $25.02 billion on property and tools, greater than the $14.92 billion spent in identical interval in 2024.
Amazon this week introduced a $4 billion funding via 2026 to broaden its rural supply community to convey sooner supply to clients in much less densely populated areas throughout the US.
The corporate mentioned it expects gross sales within the second quarter to be anyplace from $159 billion to $164 billion. Analysts projected $161.2 billion, in accordance with FactSet.
It additionally initiatives working earnings to be within the vary of $13 billion to $17.5 billion for the fiscal second quarter. Analysts anticipate $17.6 billion, in accordance with FactSet.
Amazon shares fell greater than 2% in after-hours buying and selling on Thursday.