Amazon.com Inc reported its financial results for the fourth quarter on Thursday after market hours, highlighting a revenue performance that exceeded Wall Street expectations but accompanied by mixed earnings signals. The ecommerce and cloud computing giant posted net sales amounting to $213.39 billion, marking a 14% year-over-year increase. This top-line figure surpassed the consensus forecast of $211.3 billion compiled by analysts.
The company’s revenue growth was driven by multiple segments across its business. Sales in North America reached $127.1 billion, an increase of 10% compared to the same period last year. The international segment experienced a stronger rise, with revenue hitting $50.7 billion, up 17% year-over-year. Amazon’s Web Services (AWS) unit, renowned for delivering cloud infrastructure, demonstrated the most rapid expansion, posting $35.6 billion in revenue which is 24% higher than the previous year’s fourth quarter.
Despite the robust revenue growth, Amazon’s earnings per share (EPS) came in at $1.95, marginally below the expected $1.97 set by the analyst community. Operating income for the overall company totaled $25 billion, which when segmented reveals differentiated profitability. The North America division generated operating income of $11.5 billion, an improvement from $9.3 billion in last year's corresponding quarter. Conversely, the international unit saw a decline in operating income to $1 billion from $1.3 billion. AWS delivered $12.5 billion in operating income, up from $10.6 billion the previous year, reinforcing its role as a major profit center.
Amazon’s CEO, Andy Jassy, highlighted the fast pace of innovation and focus on customer solutions as drivers behind the company’s performance. He underscored AWS’s 24% growth as the fastest rate in 13 quarters, along with a 22% increase in advertising revenue and strong sales growth in stores across both North American and international markets. Additionally, Amazon’s chip business is expanding at triple-digit rates compared to the previous year, a significant development given the strategic importance of proprietary hardware.
For the full fiscal year, Amazon recorded total revenue of $716.9 billion, which is a 12% gain from the prior year. The segments contributed as follows: $426.3 billion from North America (up 10%), $161.9 billion internationally (up 13%), and $128.7 billion from AWS (up 20%). Notably, AWS custom chips attained an annual revenue run rate exceeding $10 billion, reflecting substantial triple-digit percentage growth year-over-year.
Amazon also showcased its entertainment and streaming capabilities, citing record viewership for its "Thursday Night Football" broadcasts on Prime Video. The NFL games averaged over 15 million viewers, a 16% rise compared to the prior year and marking the third consecutive season with double-digit audience growth. Further, Amazon streamed the most-watched NFL game ever during the playoffs between the Chicago Bears and Green Bay Packers, attracting more than 31 million viewers and breaking the previous record by over four million.
Looking ahead, Amazon provided guidance for the first quarter of the upcoming fiscal year, forecasting net sales between $173.5 billion and $178.5 billion, representing year-over-year growth of 11% to 15%. The midpoint of this range is closely aligned with analyst expectations of $175.52 billion.
On the capital expenditure front, Jassy outlined a substantial investment plan of approximately $200 billion in 2026, anchored by opportunities in artificial intelligence, semiconductor chips, robotics, and low earth orbit satellite technologies. This aggressive CapEx projection signals a commitment to sustaining strong long-term returns on invested capital and continuing innovation momentum.
Following the earnings announcement, Amazon’s stock declined by 7.9% in after-hours trading, closing at $205.25 per share. This moves the share price within a 52-week trading range of $161.43 to $258.60, reflecting investor caution despite solid revenue growth and strategic investments.