Amazon projects Q3 income below estimates despite strong sales
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The news: Amazon reported a 35% rise in second-quarter profit and forecast third-quarter revenue above market estimates, but projected operating income that fell short of analysts’ expectations.
The numbers: The company said operating profit will be USD15.5 billion to USD20.5 billion in the current quarter, compared with an average Bloomberg estimate of USD19.4 billion.
It expects net sales of USD174 billion to USD179.5 billion, above the USD173.08 billion LSGE consensus.
Amazon Web Services revenue rose 17.5% to USD30.9 billion, just ahead of forecasts. Second-quarter revenue rose 13% to USD168 billion.
Shares fell around 2.5% in after-hours trading.
The context: CEO Andy Jassy is balancing high AI infrastructure costs, workforce restructuring, e-commerce competition and even tariffs.
AWS remains Amazon’s main profit driver, and demand for AI had boosted cloud revenues at Microsoft and Alphabet, raising expectations for Amazon’s cloud division.
