Amazon.com Inc. on Thursday announced its financial results for the first quarter, exceeding analyst revenue expectations, while providing a forecast for the second quarter that was largely below market projections. The company reported strong performance in its cloud computing and advertising divisions.
In its earnings report, Amazon projected net sales for the second quarter to be between $144.0 billion and $149.0 billion, representing growth of 7% to 11% compared with the same period last year. The midpoint of this range, $146.5 billion, is below the average analyst estimate of $150.1 billion, according to financial data from LSEG.
For the first quarter ending March 31, Amazon reported net sales of $143.3 billion, an increase of 13% year-over-year. This figure surpassed the average analyst expectation of $142.5 billion. The company’s net income for the quarter was $10.4 billion, or 98 cents per share, a significant increase from the $3.2 billion reported in the first quarter of the previous year.
Performance was driven by growth in key segments. Amazon Web Services (AWS), the company’s cloud computing division, generated $25.0 billion in revenue, up 17% from the prior year. The company’s advertising business also saw substantial growth, with revenue rising 24% to $11.8 billion.
In a statement accompanying the results, Amazon CEO Andy Jassy commented on the performance of the cloud unit. “The combination of companies renewing their infrastructure modernization efforts and the appeal of AWS’s AI capabilities is reaccelerating AWS’s growth rate,” Jassy said.
Company executives noted that capital expenditures would increase through the year, primarily to support growth within AWS, including investments related to generative artificial intelligence projects.
Following the announcement, shares of Amazon fluctuated in after-hours trading. The company’s financial reports are closely watched by investors as indicators of consumer spending habits and the health of the cloud computing industry.
