Ecommerce giant Amazon.com Inc (NASDAQ:AMZN) reported fourth-quarter financial results Thursday after market close.
Here are the key highlights.
Amazon Q4 Earnings
Amazon reported fourth-quarter net sales of $213.39 billion, up 14% year-over-year. The revenue total beat a Street consensus estimate of $211.30 billion, according to Benzinga Pro.
Sales were broken down as follows:
- North America: $127.1 billion, +10% year-over-year
- International: $50.7 billion, +17% year-over-year
- AWS: $35.6 billion, +24% year-over-year
The company reported fourth-quarter earnings per share of $1.95, missing a Street consensus estimate of $1.97.
Operating income for the company was $25.0 billion, which was broken down by segment, with last year’s fourth quarter total in parentheses:
- North America: $11.5 billion ($9.3 billion)
- International: $1.0 billion ($1.3 billion)
- AWS: $12.5 billion ($10.6 billion)
“AWS growing 24% (our fastest growth in 13 quarters), Advertising growing 22%, Stores growing briskly across North America and International, our chips business growing triple digit percentages year-over-year – this growth is happening because we’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” Amazon CEO Andy Jassy said.
Full-year revenue was $716.9 billion for Amazon, up 12% year-over-year. Here were the full-year segment totals:
- North America: $426.3 billion, +10% year-over-year
- International: $161.9 billion, +13% year-over-year
- AWS: $128.7 billion, +20% year-over-year
The company highlighted its AWS custom chips hitting an annual revenue run rate of over $10 billion, with triple digit percentage year-over-year growth.
The company also highlighted strong streaming demand for its “Thursday Night Football” games on Prime Video, with the season setting a record as the most-watched ever. An average of more than 15 million people watched “Thursday Night Football” games, up 16% year over year. This marked a third straight year of double-digit viewership growth.
Amazon also hosted the most-streamed NFL game in history, the NFL Playoffs matchup between the Chicago Bears and Green Bay Packers. The game was watched by over 31 million viewers, breaking the prior record by more than four million.
What’s Next for Amazon.com
Amazon is guiding for first-quarter net sales in a range of $173.5 billion to $178.5 billion, up 11% to 15% year-over-year. The analyst estimate is $175.52 billion according to data from Benzinga Pro.
“With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital,” Jassy said.
Amazon Stock Price Action
Amazon stock is down 7.9% to $205.25 in after-hours trading Thursday versus a 52-week trading range of $161.43 to $258.60.
Image by bluestork via Shutterstock
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