Amazon.com, Inc. (AMZN)

Amazon's second quarter, its newest filed result, brought in $200.6 billion, 20 percent more than a year earlier 1. Operating income, profit from running the business, rose to $27.5 billion from $19.2 billion 1. Net income jumped to $62.6 billion, but $53.4 billion of pre-tax other income came mainly from its investments in Anthropic 1.

Those gains are accounting gains, not cash: the company marked up its nonvoting preferred stock by about $50.5 billion in the quarter, reflecting the prices of Anthropic's new funding rounds 2. The business underneath grew too, led by Amazon Web Services (AWS), its cloud computing arm, whose sales rose 37 percent to $42.2 billion 1. AWS earned $16.6 billion of operating income, about 60 percent of the company's total (computed) 1.

The cost is heavy building: cash capital spending, mostly data centers and servers, reached $96.3 billion in six months, against $55.6 billion a year earlier 2. Over twelve months, free cash flow, cash from operations minus that spending, turned to an outflow of $7.6 billion 1.

The newest material event is Anthropic's own public registration statement, filed on 26 October, which says Amazon will hold more than five percent of its capital stock after its notes and preferred shares convert 5. Amazon has said it will discuss its third quarter results on a call on 29 October 6.

In 2017 Amazon's sales rose to $177.9 billion from $136.0 billion, and North America grew 33 percent, helped by Whole Foods Market, the grocery chain it bought on 28 August 2017 for about $13.2 billion 7. AWS grew 43 percent that year as customers used more of its services 7. Its operating income of $4.33 billion was more than the whole company's $4.11 billion, because the International stores lost $3.06 billion (computed) 7.

Sales reached $280.5 billion in 2019 and $386.1 billion in 2020, a jump of about 38 percent (computed) 8. The annual report for 2020 ties the surge to demand for household staples and other essentials during the pandemic, partly held back by limited warehouse capacity 8. Net income nearly doubled to $21.3 billion, and AWS sales rose 30 percent 8.

The workforce more than doubled, from about 566,000 employees at the end of 2017 to 1,298,000 at the end of 2020 78. By the end of 2022 it employed about 1,541,000 9.

In 2022 operating income fell to $12.2 billion from $24.9 billion, and North America lost $2.85 billion, which the annual report blames on higher fulfillment, shipping and wage costs 9. International sales fell 8 percent, mostly because of changes in foreign exchange rates 9.

The company ended 2022 with a net loss of $2.7 billion 9. The main reason sat outside its operations: its stake in Rivian, the electric truck maker, brought a $12.7 billion loss after an $11.8 billion gain in 2021 9.

Operating income then rose from $36.9 billion in 2023 to $68.6 billion in 2024, and International turned a $2.66 billion loss into $3.79 billion of profit on more units sold and more advertising 10. Advertising sales, the fees sellers and brands pay to be seen in its stores, grew from $46.9 billion in 2023 to $68.6 billion in 2025 3.

In 2025 sales reached $716.9 billion, with North America up 10 percent, International 13 percent and AWS 20 percent 3. Operating income of $80.0 billion absorbed a $2.5 billion charge to settle a lawsuit with the Federal Trade Commission and $2.7 billion of estimated severance for planned job cuts 3. Cash capital spending climbed to $128.3 billion from $77.7 billion, mostly for technology infrastructure, the majority of it supporting AWS 3.

Net income of $77.7 billion in 2025 included a $15.2 billion net gain, mainly from marking up its Anthropic preferred stock 3. The Associated Press reported that Amazon laid off about 14,000 workers in October 2025 and about 16,000 more in January 2026 14.

Online stores and physical stores

Online stores are the goods Amazon sells itself on its websites and apps, and they brought in $269.3 billion in 2025, about 38 percent of sales (computed) 3. In the second quarter they grew 15 percent to $70.4 billion 1. Physical stores, sales where customers pick the items in a store, grew 4 percent to $5.8 billion 13.

At the end of 2025 it ran 615 stores in North America and 8 abroad 3. Amazon Now, delivery in 30 minutes or less, had reached over 250 cities and towns in nine countries by the second quarter report 1. Its annual report names rivals in physical, online and omnichannel retail, grocery, and delivery and logistics 3.

Third-party seller services

Independent sellers list their goods in Amazon's stores and pay it fees for selling, storage and delivery; Amazon is not the seller of record 3. These services brought in $172.2 billion in 2025 and $46.8 billion in the second quarter, up 16 percent 31. Sellers supplied 61 percent of the units sold worldwide that quarter 1.

Advertising

Advertising, chiefly sponsored listings, display and video ads, brought in $19.8 billion in the second quarter, 26 percent more than a year earlier 13. Andy Jassy, the chief executive, called it "another strong quarter" 1.

Prime and other subscriptions

Prime, the membership that bundles fast free shipping, films and series and live sports, costs $14.99 a month or $139 a year in the United States 312. Subscription fees brought in $13.7 billion in the second quarter, up 12 percent 1. A Prime Video only membership costs $8.99 a month 12.

Alexa+, the new AI version of the voice assistant, is free with Prime and $19.99 a month without it, BGR reported on 6 July 13. BGR's Vic Hood found it "understands context and can remember prior information," while noting some users dislike its chattiness 13.

Amazon Web Services

AWS rents computing power, storage, databases and AI tools over the internet to companies and governments 3. It brought in $128.7 billion in 2025 and $42.2 billion in the second quarter, the fastest growth in 18 quarters 31. Its chips business and its AI business each passed $25 billion of annual revenue run rate, Amazon said 1.

Synergy Research Group put AWS's share of worldwide cloud infrastructure spending at 28 percent in the second quarter, ahead of Microsoft at 20 and Google at 15 11. Synergy noted that Microsoft and Google grew faster 11. AWS customers had signed about $496 billion of future service commitments not yet counted as revenue 2.

Bedrock, its service for using many companies' AI models, carries Anthropic's Claude and OpenAI's models 1. Trainium, its own AI chip, has multi-year commitments from both Anthropic and OpenAI 1.

Devices, Alexa, Amazon Leo and Zoox

Amazon makes Kindle readers, Fire tablets, Fire TV, Echo speakers, Ring and Blink cameras and eero routers 3. Amazon Leo, its low Earth orbit satellite internet network, had nearly 400 satellites in orbit after four more launches 1. Zoox, its robotaxi unit, won a federal safety exemption letting it charge for rides 1.

Plants, people, rivals, problems

At the end of 2025 Amazon leased about 741.5 million square feet and owned 78.1 million, mostly warehouses and data centers 3. It employed about 1,595,000 people at the end of June 2026 1. Jassy has been chief executive since July 2021, and Jeff Bezos, the founder, is executive chair 3.

Matthew Garman runs AWS and Douglas Herrington runs the stores worldwide 3. On 8 September the board elected Kevin Mandia, former chief executive of the cybersecurity firm Mandiant, as a director 16. The Federal Trade Commission's monopoly case against Amazon is set for trial on 29 March 2027, MLex reported 15.

Private plaintiffs and state attorneys general also allege price fixing and monopolization in the United States, Canada and the United Kingdom 2. Xockets claims that AWS servers infringe its patents, and the International Trade Commission opened an investigation in June 2026 2.

The umbrella, in words

The main brands are Amazon's stores, Prime, AWS, Whole Foods Market, One Medical, Ring, Kindle, Alexa, Twitch, Amazon Leo and Zoox 317. Its subsidiaries exhibit lists nine significant subsidiaries, all wholly owned, among them Amazon Web Services, Inc., Amazon.com Services LLC and Day One Insurance, Inc. 22. It bought One Medical, a primary care provider, on 22 February 2023 for about $3.5 billion in cash 3.

In Anthropic, the AI company, Amazon invested $8.0 billion in Anthropic's convertible notes from 2023 to 2025 and $10.0 billion in nonvoting preferred stock in the second quarter of 2026 2. At 30 June those notes were carried at about $97.9 billion and the preferred stock at about $92.5 billion 2. Anthropic's filing shows $6,203 million of Amazon's notes outstanding, convertible into nonvoting Class N shares 5.

The two have also agreed commercial terms: Anthropic committed in April 2026 to spend at least $110.0 billion with Amazon between May 2026 and April 2036 5. Amazon agreed a facility of up to $20.0 billion for Anthropic, tied to compute delivery, of which $15.0 billion remained after it used $5.0 billion to buy Anthropic's Series H shares 2.

Amazon also invested in OpenAI's Series C preferred stock: $15.0 billion, plus a $35.0 billion commitment it finished funding after June 2. It reports 22.9 percent of X-Energy, Inc. and 5.3 percent of Beta Technologies, Inc., each on a Schedule 13G 1819. Its holdings report lists 158,363,834 Rivian shares 20.

It agreed in April 2026 to buy Globalstar, a satellite operator, for cash and stock in a deal that implied about $10.9 billion including debt 24. Bezos reported 9 percent of the common stock as of 30 September 2025, and Vanguard Capital Management 6.77 percent as of 31 March 2026 2124.

Amazon will hold its third quarter results call on 29 October 2026, the company announced 6. For that quarter it guided to net sales of $197.0 billion to $202.0 billion and operating income of $22.5 billion to $26.5 billion 1. It said growth would be nearly 400 basis points higher excluding Prime Day in both years 1.

The company expects its spending on technology infrastructure and on warehouse capacity to increase in 2026, and it expects more financing during the year 2. It borrowed through new notes in sterling in September, about £4.235 billion net 17. A $17.5 billion term loan signed in June was available to draw until 30 September 2026 23.

The Globalstar purchase is expected to close in 2027, the 10-Q says, subject to regulators and Globalstar meeting satellite replacement milestones 2. Beginning in 2028, Amazon plans its own satellite system serving ordinary phones directly, and it agreed to power satellite features on iPhone and Apple Watch 4. Amazon said its Leo constellation was large enough to begin initial internet service this year 1.

AWS and Anthropic announced an expansion of their commitment by more than $100.0 billion over 10 years 2. AWS and OpenAI expanded theirs by $100.0 billion over 8 years 2. Anthropic's filing says new Amazon money arrives in $5.0 billion steps as compute capacity milestones are met, for up to 30 months after its offering 5.

If Anthropic lists, Amazon's notes and preferred stock would convert into nonvoting common stock, and Amazon expects a customary lock-up period 2. Anthropic's filing says Class N shares convert into voting Class A shares when transferred to an unaffiliated party 5.

On 9 October Judge John Chun refused Amazon's request to move the Federal Trade Commission trial to June 2027, keeping the 29 March date, MLex reported 15.

Past

Revenue grew from $136 billion in fiscal 2016 to $717 billion in fiscal 2025, up 20.3% a year, and rose in 9 of 9 years Net income was positive in 9 of 10 of those years Over the three fiscal years to 2025, the diluted share count grew about 2.0% a year A 20-for-1 split was effective 2022-05-27 Dividends and buybacks returned about 0% of operating cash flow over three years Officers and directors filed 129 sales under scheduled 10b5-1 plans and 0 purchases of their own stock on the open market in the year to 2026-10-05 12

Present

For the fiscal year ended 2025-12-31, Amazon reported revenue of $717 billion and a profit of $78 billion In fiscal 2025, the company earned about 19 cents of profit for every dollar of shareholders' money Its products earned about 44 cents per dollar of everything the company owns It owed about 50 cents per dollar of assets, and its share count grew 1.0% over the year Revenue of $717 billion in fiscal 2025 ranks in the top 2% by size among its industry family; a net margin of 10.8% ranks in the top 5%; revenue growth of 11.7% a year over the last three filed years ranks in the top 29% 31

The chief executive is Jassy, Andrew R (President and CEO, as filed), filing under that title since 2016-04-07, 10.5 years The 18 officers and directors filing in the last fifteen months have been on the record a median of 10.4 years 2 officer or director changes were reported on Form 8-K since 2023-10-21 1

Future

A quarterly report (Form 10-Q) for the quarter ending 2026-09-30 is due by 2026-11-09 An annual report (Form 10-K) for the fiscal year ending 2026-12-31 is due by 2027-03-01 4

Cash of $87 billion against debt of $66 billion leaves 2.6% of its assets as net cash, in the bottom 24% of its family Cash from operations less capital spending is 1.1% of revenue, in the bottom 40% Revenue grew 11.7% a year over the last three filed years against 20.3% over all 10, slowing Capital spending grew 27.5% a year 1

How the company operates

All three grew against the year before By geography, the United States accounts for 68% of revenue, the rest of world 15%, Germany 6%, the United Kingdom 6%, and Japan 4% 13

New moves

On 2026-09-09, a Form 8-K reported an officer or director change On 2026-09-11 and 2026-09-09, Forms 424B5 reported shelf offerings, securities sold off a shelf On 2026-06-10, a Form 8-K reported a major agreement signed and new debt or an obligation taken on Between 2026-06-08 and 2026-07-08, multiple Forms 424B5 reported shelf offerings 4

An FTC investigation under the law against unfair or deceptive practices affects Amazon indirectly; the company has stakes in OpenAI and Anthropic, both under investigation Amazon launched new Bee personal AI devices that listen to conversations, reported 2026-10-15 Amazon won global rights to stream Emmys in a six-year deal, reported 2026-10-06 Walmart launched a new membership program aiming to compete with Amazon and Costco, reported 2026-10-20 56