Live Earnings: Will Amazon (AMZN) Blow Out Earnings Tonight?

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Here We Go

4:00 pm

The market is closed, we expect Amazon earnings very shortly and will be providing updates.

It’s All About AWS Tonight

3:44 pm
by Eric Bleeker

Amazon shares are up 2% in late trading after Microsoft’s outstanding earnings last night.

Clearly, Microsoft is taking market share from Amazon, but the big question is just how much. 

Azure grew at a 39% growth rate last quarter. The Street is modeling 17.1% growth for AWS versus 16.9% last quarter.

Our take is that Amazon needs to beat this number soundly if shares are going to rise tomorrow. Amazon may need to deliver growth more in the 19% to 20% range after Microsoft raised expectations yesterday.

What Wall Street Expects When Amazon Reports its Second Quarter Earnings

2:45 pm
by Eric Bleeker

Here’s what Wall Street expects when Amazon reports second quarter earnings tonight:

• Revenue: $162.1 billion
• Adjusted EPS: $1.32
• Operating Cash Flow: $31.1 billion
• Free Cash Flow: $9.16 billion
• Gross Margin: 50.6%

And looking forward, here’s what Wall Street expects Amazon to guide to for its Fiscal Q3 earnings:

• Revenue: $173.2 billion
• Adjusted EPS: $1.52

 

Amazon (Nasdaq: AMZN) reports after markets close today. Expectations for tonight’s earnings rose after Microsoft (Nasdaq: MSFT) reported blowout earnings last night. Microsoft disclosed Azure’s growth rate had risen to 39% last quarter, which is a major jump from the 31% growth rate Azure reported just two quarters ago. 

Does that mean Amazon could be poised to deliver blowout AWS figures when it reports tonight? We’ll be hosting a live blog that will post news and analysis right after Amazon’s earnings are released. All you have to do is leave this page open and new updates will automatically post. 

With that, let’s look at what Apple reported last quarter. 

What Amazon Reported Last Quarter 

Here’s a look back at what Amazon reported on May 1st. Since the report shares are up 21%, which slightly outpaces the Nasdaq Composite over the same timeframe. 

AMZN | Amazon.com Q1’25 Earnings Highlights:

• Adj. EPS: $1.59 ; UP +62% YoY
• Revenue: $155.7B []; UP +9% YoY
• Net Income: $17.1B []; UP +64% YoY
• Operating Income: $18.4B []; UP +20% YoY
• Free Cash Flow: $25.9B for the trailing twelve months; DOWN -48% YoY
• Operating Cash Flow: $113.9B for the trailing twelve months; UP +15% YoY

Outlook:

• Revenue: $159.0B to $164.0B []
  • This guidance anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates.
  • Expected growth between 7% and 11% compared to Q2 2024.
• Operating Income: $13.0B to $17.5B []; compared to $14.7B in Q2 2024.

Q1 Segment Performance:

• North America Revenue: $92.9B []; UP +8% YoY
• International Revenue: $33.5B []; UP +5% YoY
• AWS Revenue: $29.3B []; UP +17% YoY

Other Key Q1 Metrics:

• Adj. Operating Expenses: $137.3B []; UP +7% YoY
• Effective Tax Rate: 21.0% (vs. 19.0% YoY)
• Cash and Cash Equivalents: $66.2B
• Inventories: $35.9B
• Accounts Payable: $89.2B
• Long-term Debt: $53.4B

CEO Commentary:

• Andy Jassy: “We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences. From Alexa+ (our next generation of Alexa that’s meaningfully smarter, more capable, and takes actions for customers), to another delivery speed record for our Prime members, to our new Trainium2 chips and Bedrock model expansion that make it easier for AWS customers to train models and run inference more flexibly and cost-effectively, to our first Project Kuiper satellites successfully launching into low earth orbit in our quest to provide broadband access to hundreds of millions of households in rural areas without it today—we’re continuing to find meaningful ways to make customers’ lives easier and better every day.”

Strategic Updates:

• Introduced Alexa+, our next-generation Alexa personal assistant who’s meaningfully smarter and more capable than her prior self, can both answer virtually any question and take actions, and is free with Prime.
• Held deal events worldwide to help customers save over $500 million across Big Spring Sale in the U.S. and Canada, Spring Deal Days in Europe, and Ramadan/Eid Sale events in Egypt, Saudi Arabia, Türkiye, and UAE.
• Announced Amazon’s 11th Prime Day will be in July, when customers can expect millions of deals globally on vast selection.
• Announced $4 billion investment through 2026 to expand Amazon’s rural delivery network to bring even faster delivery to customers in less densely populated areas across the U.S.
• Launched Amazon.ie in Ireland, offering over 200 million products with low prices, fast delivery, and local Prime membership.
• Expanded selection with Michael Kors, GAME 7, The Ordinary, Laura Mercier, and tarte.
• Introduced Saks on Amazon, where customers can shop a refined luxury assortment of fashion and beauty items from brands like Dolce&Gabbana, Balmain, Giambattista Valli, Erdem, and Fear of God.
• Launched ‘Interests’ to find products for customers’ passions and hobbies using generative AI.
• Introduced new ways to shop in the Amazon Shopping app to help customers discover and buy products from other brands’ websites even when Amazon doesn’t carry the items directly.
• Began full-scale deployment of Project Kuiper’s satellite internet network with launch and activation of first satellites.
• Began testing Zoox in Los Angeles, the sixth location for Amazon’s self-driving technology.
• Announced a joint venture to create the next generation of the esteemed James Bond film franchise.
• Drew 54.6 million viewers for Reacher’s Season 3 debut in first 19 days, Amazon’s biggest returning season ever.
• Premiered Season 2 of LeBron James’s Mind the Game podcast, co-hosted by NBA Hall-of-Famer Steve Nash and distributed by Wondery.
• Continued to grow Amazon Nova rapidly with customers such as Slack, Siemens, Coinbase, and others.

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