Amazon.com Inc (NASDAQ:AMZN) reported better-than-expected profits for the first quarter but slowing Amazon Web Services (AWS) revenue growth saw its shares pull back afterhours on Thursday.
AWS sales increased 17% year-over-year to $29.3 billion, slightly below analyst expectations of revenue in the range of $29.4 billion to $29.45 billion.
This was down from 19% year-over-year growth in the fourth quarter.
Total revenue for Q1 was up 9% from the year-ago quarter at $155.7 billion, above the $155.1 billion expected.
Earnings per share, meanwhile, came in at $1.59. This was up from $0.98 a year ago and beat estimates of $1.36.
“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences,” Amazon CEO Andy Jassy said in a statement.
For Q2, Amazon said it expects to report revenue in the range of $159 billion to $164 billion, representing growth of 7% to 11% from the same period in 2024. This was in line with estimates of $160.5 billion.
Shares of Amazon traded down 3.8% at $183 post-earnings.