Amazon (AMZN) investor relations material

Executive summary

• Net sales reached $213.4B in Q4 2025, up 14% year-over-year (12% FX adjusted), and $716.9B for the full year, with strong growth across all segments.

• Operating income for Q4 2025 was $25.0B, up 18% year-over-year, but included $2.44B in special charges; full-year operating income was $80.0B.

• Net income for Q4 2025 was $21.2B, with full-year net income at $77.7B, and diluted EPS of $1.95 and $7.17, respectively.

• AWS, advertising, and stores segments all posted double-digit growth, with AWS up 24% in Q4 and 20% for the year, reaching a $142B annualized run rate.

• Major investments are being made in AI, chips, satellite internet, and quick commerce, with a focus on long-term return on invested capital.

Financial highlights

• Q4 operating income included $2.4B in special charges: $1.1B for tax/litigation, $730M for severance, and $610M for asset impairments.

• Trailing twelve-month net sales were $716.9B, up 12% year-over-year; TTM operating income was $80.0B, up 17%.

• Free cash flow for TTM Q4 2025 was $11.2B, down 71% year-over-year, due to a $50.7B increase in property and equipment investments, mainly for AI.

• Operating cash flow for the trailing twelve months increased 20% to $139.5B.

• Comprehensive income for 2025 was $105.9B, up from $62.3B in 2024.

Outlook and guidance

• Q1 2026 net sales expected between $173.5B and $178.5B, up 11–15% year-over-year, with a 180 bps FX tailwind.

• Q1 2026 operating income forecasted at $16.5B–$21.5B, including $1B higher costs for Amazon Leo and investments in quick commerce and international pricing.

• Capital expenditures projected at $200B in 2026, focused on AI, chips, robotics, and satellite initiatives.

• Increased costs expected in 2026 for Amazon Leo satellite launches and international store investments.

• Many Leo-related costs will shift from expensed to capitalized later in the year.