Amazon sees Q1 revenue jump to $155.7B amid strong ads, issues weak guidance

US-based ecommerce and technology firm Amazon saw its total revenue jump 8.6% in the first quarter, but erred on the side of caution for its outlook, disappointing investors.

The company clocked a total revenue of $155.7 billion for the quarter ended March 31, 2025, up from $143.3 billion in the first quarter of 2024.

It also posted an operating profit of $18.4 billion in the first quarter of 2025, up by 20.3% from $15.3 billion in the same period in the previous year.

The California-based company’s net profit rose to $17.1 billion in the quarter under review, up from $10.4 billion in Q1 of 2024. 

However, the company cautioned that its outlook could be impacted by several factors, including tariffs, shifting trade policies, and “recessionary concerns”.

“It’s hard to tell what’s going to happen with tariffs right now. It’s hard to tell where they’re going to settle and when they’re going to settle,” said Andy Jassy, President and CEO, Amazon, during a conference call.

The company expects net sales between $159 billion and $164 billion for the upcoming quarter, or to grow between 7% and 11% compared with the second quarter of 2024.

Shares of the company slid as much as 5% on Thursday in after-hours trading on the NASDAQ.

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Amazon reported a strong performance in its advertising business, with sales rising 19% year-over-year to $13.92 billion in the first quarter.

On the other hand, Amazon Web Services (AWS), the company’s cloud division, logged revenue of $29.27 billion—a 17% increase from the year-ago quarter—but missed estimates for the third straight quarter.

The company also introduced some new offerings, including Alexa+, a personal assistant that is smarter and more capable than previous versions—able to answer virtually any question and perform various tasks. 

It also rolled out Ocelot, its first quantum computing chip prototype, which slashes the resources required for quantum error correction by up to 90%.

“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences,” said Jassy.

“From Alexa+ (our next generation of Alexa that’s meaningfully smarter, more capable, and takes actions for customers), to another delivery speed record for our Prime members, to our new Trainium2 chips…we’re continuing to find meaningful ways to make customers’ lives easier and better every day,” he added.