Earnings Preview: What to expect when Amazon reports Q3 2025 results

E-commerce behemoth Amazon.com, Inc. (NASDAQ: AMZN) is expected to report third-quarter results on Thursday. The company is in the midst of a corporate restructuring that includes large-scale workforce reduction.

On average, analysts following the business forecast earnings of $1.56 per share for the September quarter, representing a 9% growth from the corresponding quarter of FY24. The positive projection reflects an estimated 12% rise in Q3 revenues to $177.76 billion. That is slightly below the $174-179.5-billion revenue guidance issued by the Amazon leadership a few weeks ago. The company will publish the third-quarter report on Thursday, October 30, after regular trading hours.

Buy AMZN?

Since mid-October, Amazon’s stock has held above its 12-month average, though it remains below the February peak. The shares have gained about 4% in the past 30 days. Market watchers are bullish on AMZN’s prospects, and the majority of them recommend buying the stock, with a price target that represents around 18% growth in the next twelve months.

Continuing the long-term trend, Amazon’s revenues grew 13% annually to $167.7 billion in the second quarter of 2025. The number also came in above estimates, marking the fourth beat in a row. Sales in Amazon Web Services, the company’s fast-growing business segment, grew 17.5% year-over-year to $30.9 billion.

Earnings Beat

Sales grew in double digits in the North America and international markets. As a result, net income grew more than one-third to $18.2 billion or $1.68 per share during the three months. The company has consistently posted better-than-expected earnings since 2023.

From Amazon’s Q2 2025 Earnings Call:

“In Q2, we saw productivity gains in our transportation network driven by improved inventory placement, strong leverage on high unit volumes, and higher levels of in-demand inventory from both first-party and third-party selling partners. These factors contributed to faster delivery speeds and lower costs. Outbound shipping costs were up 6% year over year and continue to grow at a meaningfully slower pace than unit growth, which, as I mentioned earlier, was up 12% year over year. We’re committed to initiatives that further improve our cost structure.”

Restructuring

As part of its strategy of switching to an AI-based operating model and streamlining operations, the company is investing heavily in advanced technology, while also reducing costs. Recently, the management revealed plans to lay off thousands of employees across multiple divisions.

Amazon shares traded up 1% on Tuesday afternoon, extending the steady uptrend seen since last week. The stock has grown 22% in the past six months.