Amazon.com Inc (NASDAQ:AMZN) shares surged almost 10% after hours as its third quarter earnings topped Wall Street expectations, driven by strength in its Amazon Web Services (AWS) division.
Revenue of $180.2 billion beat estimates of $177.5 billion, up 12% year-over-year.
North America segment sales were up 11% from the year-ago quarter at $106.3 billion, while International segment sales were up 14% at $40.9 billion.
AWS segment sales were up 20% at $33 billion, beating estimates of $32.4 billion.
Net income was $21.2 billion or $1.95 per share, compared to estimates of $1.57.
“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” Amazon CEO Andy Jassy said in a statement.
He noted AWS grew at a pace not seen since 2022. “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity – adding more than 3.8 gigawatts in the past 12 months,” Jassy said.
Looking ahead to Q4, Amazon guided net sales in the range of $206 billion and $213 billion, up 10% to 13%. This was on the slightly conservative side of Wall Street estimates of $208.1 billion.
Operating income was guided in the range of $21 billion to $26 billion, compared to $21.4 billion in Q4 2024.