Amazon Reports $33B AWS Revenue in Q3, E-commerce Profit Margin at 4.1%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- E-commerce Market Share: Amazon holds over 37% of the U.S. e-commerce market, with independent sellers responsible for more than $2.5 trillion in sales, maintaining its competitive edge in a fiercely contested landscape.
- Cloud Service Performance: AWS generated $33 billion in revenue and $11.43 billion in operating income in Q3 2025, achieving a profit margin of 34.6%, underscoring its role as a key profit driver for the company.
- Cost Challenges: Despite net sales of $147.16 billion in the e-commerce segment during Q3, operating expenses reached $141.17 billion, resulting in a mere 4.1% profit margin, which pressures the company's overall profitability.
- AI Chip Innovation: Amazon's introduction of the Trainium3 AI chip aims to reduce reliance on Nvidia infrastructure, expected to create multi-billion-dollar market opportunities and further drive AWS growth.
AMZN
$231.18+Infinity%1D
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 228.430
Low
250.00
Averages
294.71
High
340.00
Current: 228.430
Low
250.00
Averages
294.71
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
