Amazon Reports 13% Revenue Growth Driven by AWS AI Expansion and $180 Billion Sales

Amazon reported a robust third quarter in 2025, with revenue reaching $180.2 billion, a 13% year-over-year increase, and profit soaring 38% to $21.2 billion, surpassing analyst expectations. The growth was driven by strong consumer spending online and a 20% surge in Amazon Web Services (AWS) revenue to $33 billion, marking its fastest pace since 2022, despite intensified competition from Microsoft Azure and Google Cloud. Amazon's investments in artificial intelligence (AI) infrastructure are significant, including an $11 billion AI-dedicated data center and the addition of 3.8 gigawatts of power capacity to support AI computing, with nearly 500,000 custom AI chips deployed. The company is also streamlining operations by cutting 14,000 jobs in certain office sectors, while managing a $2.5 billion legal settlement with the FTC over subscription practices. These strong results have contributed to a surge in Amazon's stock price by over 10% in after-hours trading and have positively impacted the broader consumer discretionary sector, highlighting Amazon’s dominant position amid cautious consumer spending. CEO Andy Jassy emphasized AI as a key driver for improvements across the business, underscoring Amazon's strategic focus on innovation to maintain leadership in a rapidly evolving market.