Amazon's Q1 revenue is expected to be $155.135 billion, adjusted net income is $19.306 billion, and adjusted EPS is $1.681, according to Bloomberg's consistent expectations.
Amazon will report its Q1 2025 financial results after market close on Thursday, May 1, 2025.
Amazon's Q1 revenue is expected to be $155.135 billion, adjusted net income is $19.306 billion, and adjusted EPS is $1.681, according to Bloomberg's consistent expectations.
Amazon stock is down over 25% from its peak since February as tariff fears have raised the risks of slower revenue growth and margin pressures, dampening investor sentiment.
Amazon said that revenue growth from its cloud-computing business slowed slightly to just under 19% year over year in the fourth quarter, barely missing analysts’ estimates.
The company said in a statement that Amazon Web Services generated $28.79 billion in revenue. Analysts polled by StreetAccount had expected $28.84 billion. AWS growth in the third quarter was just above 19%.
Amazon now gets 15% of total revenue from AWS. The division remains a key provider of cash for the company, supplying just over half of its profit. AWS operating income totaled $10.63 billion, up 48% and above StreetAccount’s $10.45 billion consensus.
During the quarter, AWS’ leader, Matt Garman, told CNBC that Apple has used Amazon’s custom chips to run artificial intelligence models and experimented with next-generation Amazon AI training processors.
Tariffs are more directly impactful, particularly on first-party selling. North America and International both segments contribute a combined 85% to Total Revenue. Plus, these are the segments that are the most exposed to tariffs. Despite the recent 90-day tariff pause announced by President Trump, it does exclude tariffs applied to Chinese goods, which currently stand at 145%. Given that 70% of Amazon's products are sourced in China, Amazon has been reducing its exposure by cancelling orders on imported merchandise from China-based suppliers. At the same time, Andy Jassy, CEO of Amazon, has warned that its third-party sellers may “pass costs on,” which could further compress consumer demand and reduce its competitive positioning as the e-commerce giant.
However, Amazon is one of the biggest retailers in the world, and should be able to negotiate the best terms from suppliers, and Amazon may actually gain share during these trade wars.
On the AWS front, it may see some slowdown in growth rates ahead, as the current tariff environment may push enterprises to push out or slow down their AI initiatives during this period of uncertainty. This will hurt the short-term growth rates for AWS, while the total cost of AI data centers may also rise, thus squeezing profitability and ROI in the process. Having said that, investors will be assessing the growth rates in cloud computing across the broader market spectrum that includes Microsoft’s Azure and Google Cloud Partners.
However, Amazon AWS commands a significantly higher market share, and given its innovation centered around AI efficiency across its Infrastructure and Models layer, it may be better cushioned against potential demand headwinds.
While Amazon had initially projected to grow its capex by 33% YoY to $100B in FY25 in order to meet its supply constraints, particularly power and servers, it is possible that the management may pull back some of that spending, at least until there is some more clarity around the macroeconomic landscape around tariffs and how enterprises are responding to it.
Guidance will be more important than usual, since there are so many moving parts. Amazon only guides one quarter at a time, so there will be less to pick apart.
Ahead of Amazon’s upcoming Q1 earnings release, Wall Street analysts have taken a more cautious stance, cutting their earnings estimates and price targets for the tech giant. The downgrades are largely driven by weakening consumer demand and ongoing macroeconomic headwinds.
Wedbush’s analyst Scott Devitt lowered the firm’s price target for Amazon from $280 to $225 and trimmed Q1 net income estimates by approximately 3%.
Additionally, Wedbush reduced its 2025 revenue forecasts by 2%–6% and EBITDA/operating income by 5%–10%. Wedbush also pointed the current situation as “dense fog,” and stated that it may update its estimates again after hearing from company executives in the coming weeks for better clarity.
Earlier this month, TD Cowen also trimmed its estimates, citing broader macroeconomic concerns. The firm lowered its revenue, operating income, and earnings projections by around 1% for 2025 and cut its 2026–2030 estimates by 3–4%, reflecting softer consumer spending amid higher-than-expected tariffs and other headwinds.
At the same time, Cowen’s top-rated analyst, John Blackledge, reduced his price target on AMZN stock from $255 to $240 while maintaining a Buy rating. Similarly, Morgan Stanley’s Brian Nowak lowered his price target by 10%, bringing it down to $245.
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