Amazon Posts Strong Q1 Results Amid Tariff Uncertainty, Cloud and AI Investments Surge

Last Updated May - 02 - 2025, 04:38 PM | Source : Fela News

Amazon reported a 9% rise in revenue and strong AWS growth in Q1 2025, navigating U.S.-China trade tensions with strategic imports and expanded AI, cloud, and r

Amazon reported a strong first-quarter performance, surpassing analysts’ expectations with higher profits and sales. The company earned $17.13 billion, or $1.59 per share, up from $10.43 billion last year, while revenue rose 9% to $155.7 billion.

Its cloud unit, Amazon Web Services, grew 17% to $29.3 billion. CEO Andy Jassy highlighted Amazon's broad selection and low prices as key strengths in a challenging economy shaped by President Trump's 145% tariffs on China. These trade policies have hurt smaller retailers, but Amazon and its third-party sellers mitigated the impact by importing goods early.

However, new tariffs and the removal of exemptions for low-value Chinese shipments may raise prices, affecting Amazon’s new storefront, Amazon Haul. Despite these headwinds, Amazon continues investing heavily in AI, data centers, and delivery infrastructure—spending over $25 billion on property and equipment in Q1.

The company expects Q2 revenue between $159 billion and $164 billion and operating income of $13 billion to $17.5 billion, slightly below analysts’ forecasts. Amazon shares declined over 2% in after-hours trading following the earnings release.