Amazon Reports Higher Sales and Earnings for Q3

Amazon posted higher fiscal third-quarter profit and sales compared with a year ago, driven by accelerating growth in its cloud computing division and strong consumer spending amid resurgent inflation, Anne D’Innocenzio reported for the Associated Press (AP).

Amazon faces growing pressure to reassure investors that AWS remains competitive with Microsoft Azure and Google Cloud. (Photo: Amazon)

The results beat Wall Street expectations. The company’s cloud computing arm, Amazon Web Services (AWS), also exceeded forecasts, posting 20% growth.

However, Amazon issued a cautious sales outlook for the fiscal fourth quarter. Shares still surged nearly 13% in after-hours trading.

Analysts are parsing Amazon’s results—and those of other major retailers—for clues about consumer behavior heading into the holiday season and how the company is managing cost pressures linked to President Donald Trump’s tariffs.

Amazon, based in Seattle, also faces growing pressure to reassure investors that AWS remains competitive with Microsoft Azure and Google Cloud. Amazon reported 20% growth for AWS, up from 17.5% in the fiscal second quarter.

CEO Andy Jassy said in a statement that AWS is growing “at a pace it hasn’t seen since 2022.”