Advertising continues to be a key growth driver as total net sales rise 13% to $167.7 billion
Amazon reported strong Q2 FY25 results, with advertising revenue reaching $15.7 billion-a 23% year-on-year (YoY) increase from $12.7 billion in the same quarter last year. On a sequential basis, ad revenue rose 12.7% from $13.9 billion in Q1 FY25.
The company’s advertising business includes sales of services to sellers, vendors, publishers, authors, and others through formats like sponsored product listings, display, and video ads. Sponsored listings on Amazon’s online store continue to contribute significantly to ad revenue.
Overall net sales rose 13% YoY to $167.7 billion in Q2, compared to $148.0 billion in Q2 2024. Operating income increased to $19.2 billion, up from $14.7 billion, while net income stood at $18.2 billion, or $1.68 per diluted share-up from $13.5 billion, or $1.26 per diluted share, in the same quarter last year.
Commenting on the results, Andy Jassy, President and CEO of Amazon, said,
“Our conviction that AI will change every customer experience is starting to play out.”
He highlighted several AI-driven developments across Amazon’s ecosystem, including the expansion of Alexa+, the launch of shopping agents, productivity optimization tools like DeepFleet, and AI developer tools such as Kiro, Strands, and Bedrock AgentCore.
Looking ahead, Amazon expects Q3 FY25 net sales to range between $174.0 billion and $179.5 billion, representing YoY growth of 10% to 13%. This guidance includes a 130-basis-point tailwind from foreign exchange rates. Operating income is projected between $15.5 billion and $20.5 billion, compared to $17.4 billion in Q3 FY24.
