Amazon Q2 profit forecast disappoints as tariffs bite
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The news: Amazon reported first-quarter sales of USD155.7 billion ($243.8 billion), slightly above average estimates, but its second-quarter operating income forecast came in below analyst expectations.
The numbers: Earnings per share in Q1 were USD1.59, also above the USD1.36 consensus estimate. Operating income was $18.4 billion, ahead of the consensus USD17.5 billion.
But the company forecast second-quarter operating profit of USD13 billion to USD17.5 billion, below the USD17.8 billion analyst consensus.
Net sales for the period ending June are guided at between USD159 billion and USD164 billion, compared with the average estimate of USD160.91 billion.
Amazon Web Services revenue rose 17% to USD29.3 billion—its slowest growth in a year—and lagged Microsoft and Google Cloud, according to Bloomberg.
Shares fell more than 4% in after-hours trading.
The context: Under pressure from Trump’s tariffs, Amazon is facing potential supply disruption from Chinese sellers and price sensitivity among US consumers.
The results follow Amazon’s retreat from a proposal to display import charges on its Haul storefront, after a report on the idea drew a sharp rebuke from the White House and a personal complaint from President Trump.
