Amazon (AMZN) Q3 2024 earnings summary

Executive summary

• Net sales rose 11% year-over-year to $158.9 billion in Q3 2024, with strong growth across all segments.

• Operating income increased to $17.4 billion from $11.2 billion in Q3 2023, a 56% year-over-year rise, driven by higher sales and improved efficiencies.

• Net income reached $15.3 billion ($1.43 per diluted share), up from $9.9 billion ($0.94 per diluted share) a year ago.

• AWS segment led growth with 19% sales increase to $27.5 billion and operating income of $10.4 billion.

• Free cash flow for the trailing twelve months more than doubled to $47.7 billion.

Financial highlights

• Total net sales: $158.9 billion, up 11% year-over-year; AWS sales up 19% to $27.5 billion.

• Operating income: $17.4 billion, up from $11.2 billion; net income: $15.3 billion, up from $9.9 billion.

• Diluted EPS: $1.43, up from $0.94; gross margin improved as operating margin rose to 11%.

• Free cash flow less principal repayments of finance leases and financing obligations: $44.9 billion, up from $15.9 billion.

• Cash, cash equivalents, and marketable securities: $88.1 billion as of September 30, 2024.

Outlook and guidance

• Q4 2024 net sales expected between $181.5 billion and $188.5 billion, 7–11% growth year-over-year.

• Q4 2024 operating income projected between $16.0 billion and $20.0 billion, up from $13.2 billion in Q4 2023.

• Capital investments expected to reach ~$75 billion in 2024, with majority allocated to AWS and AI infrastructure.

• CapEx likely to increase further in 2025, driven by generative AI demand.

• Guidance reflects potential headwinds from foreign exchange, macroeconomic, and geopolitical factors, and assumes no major acquisitions, restructurings, or legal settlements.