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Having broken the $100bn revenue barrier for the FY in 2024 AWS, Amazon's cloud computing division, posted impressive 17% YoY growth with revenue of $29.3bn. The segment generated operating income of $11.5bn, up from $9.4bn in Q1 last year, demonstrating its value as Amazon's profit powerhouse. AWS secured numerous high-profile agreements with blue-chip clients including Adobe, Uber, Nasdaq and Ericsson during the quarter.
Amazon itself saw Q1 2025 revenue reach $155.7bn, representing a 9% YoY increase (10% in constant currency). North America remains Amazon's largest segment with sales of $92.9bn (up 8%), while International grew 5% to $33.5 bn. What impact tariffs have on this we shall see further down the line.
Amazon has significantly expanded its AI capabilities, particularly within AWS, introducing several new offerings including additional foundation models in Amazon Bedrock (such as Anthropic's Claude 3.7 Sonnet and Meta's Llama 4). The launch of Amazon Nova Sonic, a speech-to-speech foundation model, further demonstrates AWS's commitment to advancing AI technologies.
For Q2 2025, Amazon forecasts revenue between $159bn and $164bn (7-11% growth) and operating income between $13.0bn and $17.5bn. The guidance reflects confidence in continued momentum, particularly in cloud services, despite ongoing macroeconomic uncertainties and tariff headwinds.
Posted by: Marc Hardwick at 09:06
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