SEATTLE — Amazon ended 2025 by booking a 14% increase in net sales for Q4 and a 12% sales bump for the year, and looks to invest about $200 billion in projects for this year.
Net sales rose to $213.4 billion for the quarter. Excluding the $2.8 billion favorable impact from year-over-year changes in foreign exchange rates during the quarter, the net sales increase was 12%. Broken out by segment, North America rose 10% to $127.1 billion; international 17% to $50.7 billion; and AWS was up 24% to $35.6 billion.
The Internet retailer finished the full year with $716.9 billion in net sales, of which $4.4 billion could be attributed to favorable impact from foreign exchanges rate changes during the year. North America was up 10% year-over-year to $426.3 billion; international, up 13% to $161.9 billion; and AWS, up 20% to $128.7 billion.
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“AWS growing 24% (our fastest growth in 13 quarters), advertising growing 22%, stores growing briskly across North America and international, our chips business growing triple-digit percentages year-over-year — this growth is happening because we’re continuing to innovate at a rapid rate, and identify and knockdown customer problems,” said Andy Jassy, president and CEO.
“With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026 and anticipate strong long-term return on invested capital,” he said.
For the fourth quarter, operating income increased to $25 billion, up from $21.2 billion in Q4 2024. Three special charges impacted Q4 income: $1.1 billion for a tax dispute related to its store business in Italy and the settlement of a lawsuit, $730 million for severance costs and $610 million in asset impairments, mostly related to its physical stores.
Yearly operating income rose to $80 billion vs. $68.6 billion in 2024. Operating cashflow for the trailing 12 months in 2025 was $139.5 billion, an increase of 20%. Free cashflow dropped to $11.2 billion driven by $50.7 billion in purchases, primarily related to artificial intelligence. Free cashflow at the end of 2024 was $38.2 billion.
Some highlights since Amazon’s last earnings call include delivering nearly 70% more items same day in the United States than a year ago, with same-day delivery used by nearly 100 million customers, and expansion of its Amazon Now ultra-fast 30 minutes or less delivery in India, Mexico and UAE, with tests in the United States and United Kingdom.
Amazon has also made improvements to Rufus, its agentic AI shopping assistant, which is able to shop tens of millions of items in other online stores directly and make purchases on behalf of customers using is Buy For Me feature. Rufus was used by 300 million-plus customers and delivered about $12 billion in incremental annualized sales in 2025.
Guidance for the first quarter of 2026 shows net sales in the $173.5 billion to $178.5 billion range, which translates to growth of 11% to 15%. Operating income is expected to be between $16.5 billion and $21.5 billion compared with $18.4 billion in last year’s first quarter.
