Amazon CEO Andy Jassy speaks during a keynote address at AWS re:Invent 2024, a conference hosted by Amazon Web Services, at The Venetian Las Vegas on December 3, 2024 in Las Vegas, Nevada.
Noah Berger | Getty Images
Amazon on Wednesday posted better-than-expected earnings and revenue for the first quarter, and reported cloud sales that topped analysts’ expectations.
The stock fell more than 1% in extended trading.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
- Earnings per share: $2.78 vs. $1.64
- Revenue: $181.52 vs. $177.30 billion
Wall Street was also looking at other key revenue numbers:
- Amazon Web Services: $37.59 billion vs. $36.64 billion, according to StreetAccount
- Advertising: $17.24 billion vs. $16.87 billion, according to StreetAccount
Revenue in Amazon’s cloud segment increased 28% year over year to $37.59 billion, marking its fastest growth in more than three years. Wall Street had expected AWS sales to grow 26%.
Amazon and other big tech companies have been trying to justify their hefty artificial intelligence spending, which could approach $700 billion in 2026. Amazon in February projected its capital expenditures will reach $200 billion in 2026, a sharp increase from last year.
The company recently announced a host of AI-related deals with OpenAI, Anthropic and Meta, which could help ease investor concerns about when its spending will pay off, but will likely require Amazon to build out even more data centers and infrastructure.
Amazon said capital spending in the first quarter reached $44.2 billion, which was above Wall Street’s projected $43.6 billion, according to FactSet. Meanwhile, its free cash flow for the past twelve months fell to $1.2 billion, a 95% decrease year over year, primarily because of its AI investments, the company said.
For the current quarter, Amazon said it expects sales to come in between $194 billion and $199 billion. Analysts polled by LSEG were expecting $188.9 billion.
The company gave a wide range for operating income in the second quarter, projecting it to be between $20 billion and $24 billion. Analysts were projecting $22.65 billion, according to StreetAccount.
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