Amazon Q1 Earnings Report: Total Revenue Up 17% Year-over-Year, EPS Doubles Expectations

According to monitoring by Dongcha Beating, Amazon has released its Q1 earnings report, showing total revenue of $181.5 billion, a 17% increase year-over-year, exceeding Wall Street’s expectation of $177.3 billion. Earnings per share (EPS) stood at $2.78, significantly surpassing analyst expectations of $1.64; however, this figure includes a pre-tax gain of $16.8 billion from its investment in Anthropic. After excluding this one-time gain, the adjusted EPS is approximately $1.61, which is actually one cent lower than expected. Following the report, the stock price fell over 3%. AWS revenue reached $37.59 billion, a 28% year-over-year increase, surpassing the expected $36.64 billion, marking the fastest growth in 15 quarters. Operating profit was $14.16 billion, with an operating margin of 37.7%, well above the expected $12.84 billion. CEO Andy Jassy stated that the annualized revenue from self-developed chip business has surpassed $20 billion, with a year-over-year growth rate exceeding three digits. Over the past 12 months, Amazon has deployed more than 2.1 million AI chips, with over half being its self-developed Trainium. Capital expenditures for the first quarter were $44.2 billion, exceeding the expected $43.6 billion, with a full-year budget of $200 billion. The cost of this investment has resulted in free cash flow dropping to $1.2 billion over the past 12 months, a 95% decrease year-over-year. Advertising revenue reached $17.24 billion, a 24% year-over-year increase, exceeding expectations. The Q2 revenue guidance is set at $194 to $199 billion, higher than the analyst expectation of $188.9 billion, with an operating profit guidance of $20 to $24 billion. Prime Day will be held earlier in June.