Takeaways by Saasverse AI
- Revenue $180.2B (+13%) | Net Income $21.2B (+38%) | AWS Revenue $33B (+20%).
- AI Growth: Trainium2 Orders Up 150% QoQ | Project Rainier Operational | AI Investments Drive Cloud Momentum.
- Key Segments: North America $106.3B (+11%), International $40.9B (+14%), Ads $17.7B (+24%) | Stock +12% After-Hours.
Amazon delivered an exceptional Q3 2025 performance, with total revenue reaching $180.2 billion, a 13% year-over-year increase, and net income surging by 38% to $21.2 billion. The standout performer was AWS, Amazon's cloud computing division, which reported $33 billion in revenue, growing 20% year-over-year—its fastest pace since 2022. This robust cloud growth, fueled by the explosion of AI-driven demand, sent Amazon’s stock soaring over 12% in after-hours trading.
AWS continues to dominate the enterprise cloud market with its expanding AI services portfolio, including AI training and inference solutions. Amazon’s investments in AI infrastructure are paying off, with over 3.8 gigawatts of new data center capacity added in the last year. As a result, Amazon raised its FY2025 capital expenditure guidance from $118 billion to $125 billion, primarily to scale AI infrastructure. CEO Andy Jassy highlighted the strong market demand for AI capabilities, aligning Amazon's strategy with peers like Microsoft and Google, who are also doubling down on AI data center investments.
A key driver of AWS’s growth is its custom AI chip, Trainium2, which has become a multi-billion-dollar business, with orders surging 150% sequentially. Amazon recently launched its $11 billion Project Rainier AI data center, equipped with 500,000 Trainium2 chips, dedicated to supporting Anthropic's Claude AI model. On the product innovation front, Amazon expanded its AI-based offerings with Amazon Q, an enterprise-focused chatbot, and Bedrock, its generative AI platform. In the consumer space, the Rufus shopping assistant has gained traction with over 250 million users, significantly boosting conversion rates.
Geographically, Amazon is scaling its AI investments globally. The company announced plans to invest $5 billion in AI data centers in South Korea by 2031 and €1.4 billion ($1.63 billion) in the Netherlands over the next three years to enhance AI-driven services for merchants. This global expansion underscores Amazon’s ambition to solidify its leadership in the AI and cloud markets.
Other business segments also showed strong growth. North America revenue rose 11% to $106.3 billion, international revenue climbed 14% to $40.9 billion, and advertising revenue surged 24% to $17.7 billion, reflecting the strength of Amazon’s diversified business model.
Saasverse Insights
Amazon’s Q3 results highlight its strategic focus on AI as a growth catalyst, positioning AWS as a leader in meeting enterprise AI demands. The rapid adoption of Trainium2 and the operational launch of Project Rainier signal Amazon’s ability to execute on its AI ambitions. However, the race for AI dominance among cloud giants remains highly competitive, with significant capital expenditures posing near-term risks. Amazon’s strategic global investments and innovative AI-driven products will be critical in maintaining its momentum and market leadership in cloud and AI services.