Amazon's Q4 net profit increases by 6%, expenses surge in 2026, stock price drops 9%

Amazon

TechCrunch reports that on February 6, Beijing time, the U.S. e-commerce giant Amazon (NASDAQ:AMZN) released its Q4 and full-year 2025 earnings report as of December 31. The report shows that Amazon’s total revenue for Q4 was $213.386 billion, up 14% from $187.792 billion in the same period last year; net profit was $21.192 billion, a 6% increase from $20.004 billion last year.

For the full year 2025, total revenue was $716.924 billion, a 12% increase from $637.959 billion in 2024; excluding a favorable exchange rate impact of $4.4 billion, total revenue grew 12% year-over-year; net profit was $77.670 billion, up 31% from $59.248 billion.

Stock Performance:

Amazon’s Q4 earnings per share fell short of expectations, and the company increased its capital expenditure for 2026 to over $200 billion—far exceeding analyst estimates—representing a 56% year-over-year increase. This dragged down the first-quarter operating profit outlook, leading to a post-market drop of over 9%.

Amazon Post-Market Drop of 9.28%

On Thursday, Amazon stock opened at $224.91 on NASDAQ. By the close, the stock had fallen $10.30 to $222.69, a 4.42% decline. As of press time, Amazon’s stock traded down $20.67 in after-hours trading to $202.02, a 9.28% decrease. Over the past 52 weeks, Amazon’s highest stock price was $258.60, and the lowest was $161.38.

Q4 Key Highlights:

— Total revenue of $213.386 billion, up 14% from $187.792 billion last year; excluding a $2.8 billion favorable exchange rate impact, revenue increased 12% year-over-year;

— Operating profit of $24.977 billion, up 18% from $21.203 billion last year; Q4 operating profit included three special expenses: $1.1 billion related to tax disputes and litigation settlements for Italy stores, $730 million estimated severance costs, and $610 million asset impairments related to physical stores. Without these expenses, operating profit would have been $27.4 billion.

— Net profit of $21.192 billion, a 6% increase from $20.004 billion last year;

— Diluted earnings per share of $1.95, up 5% from $1.86 last year;

— Operating cash flow over the 12 months ending December 31, 2025, was $139.5 billion, up 20% from $115.9 billion last year; free cash flow was $11.2 billion, down 71% from $38.2 billion last year.

By Business Segment:

— AWS cloud computing revenue in Q4 was $35.6 billion, up 24%; operating profit was $12.5 billion, up 18% from $10.6 billion last year;

— North America segment revenue in Q4 was $127.1 billion, up 10%; operating profit was $11.5 billion, up 24% from $9.3 billion last year;

— International segment revenue in Q4 was $50.7 billion, up 17%, or 11% excluding currency effects; operating profit was $1 billion, down 23% from $1.3 billion last year.

Q1 2026 Outlook:

— Revenue is expected to be between $173.5 billion and $178.5 billion, representing an 11% to 15% increase year-over-year; this guidance includes approximately 180 basis points of favorable currency impact;

— Operating profit is projected to be between $16.5 billion and $21.5 billion, compared to $18.4 billion in the same period last year.