Shares of e-commerce giant Amazon (AMZN) jumped in after-hours trading after the firm reported solid Q3 results. Earnings per share came in at $1.95, which beat analysts’ consensus estimate of $1.57 per share. Sales increased by 13.4% year-over-year, with revenue hitting $180.2 billion. This also beat analysts’ expectations of $177.9 billion.
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In addition, the company’s various segments witnessed notable growth over the past year. Indeed, North America’s sales climbed to $106.3 billion, which was a 11% increase from the previous year. In the International segment, sales reached $40.9 billion, a year-over-year growth of 14%. Additionally, the AWS segment experienced a 20% increase in sales, which equaled a total of $33 billion.
AWS is particularly important to the company because it is Amazon’s highest-margin segment, as illustrated below, thereby accounting for the bulk of its operating income.
Guidance for Q4 2025:
Looking forward, management released the following guidance for Q4 2025:
- Revenue in the range of $206 billion to $213 billion compared to analysts’ forecast of $207.9 billion
- Operating income between $21 billion to $26 billion versus expectations of $23.41 billion
As we can see, guidance came in better than expected, which helped push shares higher in after hours trading.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 41 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $269.24 per share implies 19.8% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
