Amazon (AMZN) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales reached $187.8 billion, up 10% year-over-year (11% FX adjusted), with operating income at $21.2 billion, up 61% year-over-year, and net income doubling to $20.0 billion.

• AWS revenue grew 19% year-over-year to $28.8 billion, with an annualized run rate of $115 billion and operating income up 48% to $10.6 billion.

• Advertising revenue hit $17.3 billion in Q4, up 18% year-over-year, now a $69 billion annual run rate.

• Record holiday season, fastest Prime delivery speeds, and major AI/ML innovations, including Trainium2 and Nova models, highlighted operational achievements.

• TTM net sales were $637.96 billion, up 11% year-over-year; TTM operating income was $68.6 billion, up 86%; TTM net income was $59.2 billion, up 95%.

Financial highlights

• Free cash flow (TTM, adjusted for equipment leases): $36.2 billion (+2% YoY); operating cash flow up 36% YoY to $115.9 billion.

• Gross margin improved as operating margin reached 11.3% in Q4 and 10.8% for the year.

• Cash and cash equivalents increased to $78.8 billion at year-end; stockholders’ equity rose to $286.0 billion.

• Common shares outstanding at Q4 2024 were 10,593 million; stock-based awards outstanding were 283 million.

• Free cash flow less principal repayments of finance leases and financing obligations (TTM) was $35.5 billion, up 10% YoY.

Outlook and guidance

• Q1 2025 net sales expected between $151.0 billion and $155.5 billion, up 5–9% YoY, with a $2.1 billion FX headwind.

• Q1 2025 operating income guidance: $14–$18 billion.

• Full-year 2025 CapEx expected to be similar to Q4 2024 run rate, focused on AWS and AI infrastructure.

• Useful life changes for servers and equipment to impact 2025 operating income by net -$400 million.