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Investing.com -- Amazon.com Inc on Thursday posted stronger-than-expected quarterly earnings as rapid growth in its cloud unit and surging AI demand lifted results, sending its shares up 10% in extended trading.
The company reported third-quarter earnings per share of $1.95, beating analysts’ estimates of $1.56.
Revenue rose 13% to $180.2 billion, above expectations of $177.75 billion.
Sales at Amazon Web Services, its largest profit driver, climbed 20% to $33 billion. The company said it was in fastest pace since 2022 as AI workloads boosted cloud demand.
When company reported earnings last quarter, cloud unit AWS grew 17.5% which was slower what market had hoped.
CEO Andy Jassy said AWS is “re-accelerating” and expanding capacity rapidly, including 3.8 gigawatts added in the past year.
Operating income held steady at $17.4 billion but included $4.3 billion in one-time charges from an FTC settlement and severance costs.
Excluding these, operating income would have risen to $21.7 billion. Net income rose to $21.2 billion from $15.3 billion a year earlier, helped by a $9.5 billion gain from its investment in Anthropic.
North America sales grew 11% to $106.3 billion, while international sales rose 14% to $40.9 billion. The company’s free cash flow fell to $14.8 billion due to heavier capital spending.
Amazon said it expects fourth-quarter revenue between $206 billion and $213 billion, implying growth of 10% to 13%, broadly in line with Wall Street forecasts. It projected operating income of $21 billion to $26 billion.
Jassy said AI is driving “meaningful improvements” across the company, highlighting strong adoption of Amazon’s Trainium2 chips and new products such as Quick Suite, an AI agent platform designed to speed up workplace tasks.