Amazon reported first-quarter revenue of $181.5 billion, up 17% year-over-year, with advertising revenue climbing 24% to $17.24 billion and subscription services growing 15% to $13.43 billion.
The e-commerce giant delivered stronger-than-expected results across multiple business segments Wednesday. Ad revenue of $17.24 billion surpassed analyst estimates of $16.87 billion, reflecting continued momentum in Amazon's high-margin advertising business.
Subscription services revenue reached $13.43 billion, driven by Prime membership fees and other recurring services. The 15% year-over-year growth underscores steady demand from the company's subscription base.
Amazon's overall financial performance was robust. Net income surged 77% to $30.3 billion in the quarter, while operating income jumped 30% to $23.9 billion. The company's cloud division also topped analyst expectations, though specific figures were not detailed in initial reports.
The results demonstrate Amazon's diversification strategy paying dividends. While e-commerce remains the foundation, advertising and cloud services have become increasingly important profit drivers. The advertising business, in particular, has emerged as a key growth engine competing directly with Google and Meta.
Amazon's subscription service expansion continues to strengthen customer loyalty and recurring revenue streams. Prime membership benefits have expanded beyond shipping to include video streaming, music, and other perks, supporting the growth trajectory.
These earnings highlight Amazon's ability to maintain revenue growth while significantly expanding profitability. The 77% increase in net income substantially outpaced the 17% revenue growth, indicating improving operational efficiency and margin expansion across the business.
Investors will be watching whether Amazon can sustain this momentum in coming quarters amid ongoing competition and economic uncertainties. The company's performance suggests its core retail business remains healthy while newer segments continue scaling effectively.
A new social platform called Twitter has launched despite an ongoing trademark injunction case against Elon Musk's X. The service explicitly states it is not affiliated with X.
Nvidia CEO Jensen Huang interrupted an all-hands meeting to take a call from Donald Trump. Hours later, the president posted congratulations to Nvidia on Truth Social regarding the company's latest earnings.
Apple increased Apple TV+ subscription prices effective immediately, raising the monthly cost from $12.99 to $14.99 and annual plans from $99 to $119. The company also bumped up its Apple One bundle pricing.
Meta has implemented a feature that disables recording on its AI glasses when users cover the safety light, addressing privacy concerns around nonconsensual video capture.