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Amazon (NASDAQ:AMZN) fell in after-hours trading on Thursday after reporting revenue, EPS, and operating income above expectations for Q2, but setting a guidance range for Q3 operating income with a midpoint below the consensus estimate.
The Seattle-based e-commerce giant reported total revenue in North America in FQ2 was up 11% to $100.1 billion, while international revenue was 16% higher to $36.8 billion. Total revenue was up 13.3% year-over-year to $167.7 billion, vs. $162.5 billion consensus.
The cloud business was strong again as AWS revenue came in at $30.9 billion to edge past the consensus estimate of $30.8 billion. Online stores revenue came in at $61.5 billion, vs. $59.3 billion consensus. Third-party seller services revenue rose 11% to $40.4 billion during the quarter.
Operating income was reported at $19.2 billion (+31% Y/Y) in comparison to the consensus mark of $16.9 billion and the company’s guidance range of $13.0 billion to $17.5 billion. North America segment operating income was $7.5 billion, international segment operating income was $1.5 billion, and AWS segment operating income was $9.3 billion.
Free cash flow decreased to $18.2 billion for the trailing twelve months, compared with $53.0 billion for the trailing twelve months a year ago.
CEO Andy Jassy: “Our conviction that AI will change every customer experience is starting to play out as we’ve expanded Alexa+ to millions of customers, continue to see our shopping agent used by many millions of customers, launched AI models like DeepFleet that optimize productivity paths for our 1M+ robots, made it much easier for software developers to write code with Kiro (our new agentic IDE), launched Strands to make it easier to build AI agents, and released Bedrock AgentCore to enable agents to be operated securely and scalably… Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth.”
Looking ahead, Amazon (NASDAQ:AMZN) expects revenue of $174.0 billion to $179.5 billion (midpoint $176.3 billion) for the third quarter, vs. $173.3 billion consensus. Amazon (AMZN) also guided for operating income of $15.5 to $20.5 billion (midpoint $18.0 billion) vs. $19.4 billion consensus.
Amazon (AMZN) will hold a conference call at 5:00 p.m.
Shares of Amazon (AMZN) were down 2.4% in after-hours trading. The e-commerce stock was up 1.7% during the regular session.
The report from Amazon (AMZN) could be solid enough to provide an incremental lift to Walmart (WMT), Target (TGT), Etsy (ETSY), Wayfair (W), Best Buy (BBY), and the retail sector (XRT) as a whole