Strong Revenue Growth: Amazon reported $167.7 billion in revenue for Q2 2025, representing a 12% year-over-year increase, excluding foreign exchange impacts. Operating income was $19.2 billion, a 31% YoY increase, demonstrating strong operational performance and cost management.

AWS Growth and Demand: Amazon Web Services (AWS) had a revenue of $30.9 billion, growing 17.5% YoY with an annualized revenue run rate exceeding $123 billion. However, AWS margins decreased to 32.9%, due partly to higher stock-based compensation and increased depreciation expenses. The company has more demand than current supply, particularly in generative AI services, indicating a robust growth outlook but also revealing infrastructure supply constraints.

International Segment Improvement: The international segment grew revenue by 11% YoY, with operating margins increasing to 4.1%. This growth stems from productivity gains in transportation networks and a rising mix of third-party sellers, which helps sustain selection and pricing competitiveness in international markets.