Amazon Shares Surge 10% as Q3 Earnings Beat Expectations

Amazon's third-quarter earnings far exceeded Wall Street expectations, with revenue of $180.2 billion beating estimates of $177.5 billion. The company's Amazon Web Services (AWS) division saw a 20% increase in sales, while the North America and International segments reported sales growth of 11% and 14%, respectively. The strong earnings propelled Amazon's shares to a nearly 10% increase in after-hours trading.

Key Takeaways:

Amazon's Q3 revenue reached $180.2 billion, a 12% year-over-year increase and surpassing estimates of $177.5 billion.
The AWS division experienced a significant 20% growth in sales, exceeding estimates of $32.4 billion with $33 billion in revenue.
North America segment sales grew 11% from the previous year, reaching $106.3 billion, while International segment sales increased by 14% to $40.9 billion.
Net income was $21.2 billion, or $1.95 per share, surpassing estimates of $1.57 per share.
Amazon CEO Andy Jassy highlighted the strong demand in AI and core infrastructure, with the company accelerating capacity by adding 3.8 gigawatts in the past 12 months.
Amazon guided Q4 net sales in the range of $206 billion to $213 billion, representing a 10% to 13% year-over-year growth.
Operating income is expected to range from $21 billion to $26 billion in Q4, slightly conservative compared to the $21.4 billion reported in Q4 2024.

Statistics:

Revenue: $180.2 billion (Q3 2024)
Estimated revenue: $177.5 billion
Growth rate: 12%
AWS revenue: $33 billion
Estimated AWS revenue: $32.4 billion
Growth rate (AWS): 20%
North America segment sales: $106.3 billion
Growth rate (North America): 11%
International segment sales: $40.9 billion
Growth rate (International): 14%
Net income: $21.2 billion
Net income per share: $1.95
Estimated net income per share: $1.57
Q4 guided net sales: $206 billion - $213 billion
Q4 growth rate: 10% - 13%
Operating income (Q4 2024): $21.4 billion
Q4 operating income guidance: $21 billion - $26 billion