By Anita Coker
Amazon outperformed Wall Street expectations in the first quarter of 2025, reporting $155.7 billion in revenue and $17.1 billion in net income. Despite the strong showing, shares fell over 2% in after-hours trading due to a weaker-than-expected Q2 forecast.
Earnings per share came in at $1.59, ahead of analyst projections of $1.37, according to FactSet. However, the company projected second-quarter revenue between $159 billion and $164 billion, with operating income ranging from $13 billion to $17.5 billion—both slightly below analyst expectations.
The company also flagged “tariff and trade policy” as complicating its future outlook. About half of Amazon’s third-party sellers are based in China, making it vulnerable to new U.S. tariffs announced under President Trump. The concern marked a notable shift, as such language was not part of the previous quarter’s guidance.
Amazon Web Services (AWS), its cloud computing division, reported $29.3 billion in revenue, reflecting 17% year-over-year growth and aligning closely with forecasts.
Earlier in the week, Amazon drew attention from the White House over a reported plan to display tariff-related price increases. President Trump personally contacted Amazon chairman Jeff Bezos to voice concerns. The company later said the plan was never approved and has been dropped.
Amazon shares had closed Thursday 3% higher before retreating in post-market trading. The company is down 14% year-to-date, underperforming the broader market.
CEO Andy Jassy is expected to provide more context during the company’s investor call.