TLDR
- Amazon (AMZN) stock jumped 10.48% to $246.22 after Q3 2025 earnings beat forecasts.
- AWS revenue rose 20% to $33 billion, driven by AI infrastructure demand.
- EPS reached $1.95 on $180.2 billion in revenue, surpassing Wall Street estimates.
- Amazon announced 14,000 corporate job cuts amid restructuring and AI focus.
- AWS’s Trainium2 chip and Project Rainier boosted AI business growth by 150%.
Amazon (NASDAQ: AMZN) reported its third-quarter 2025 earnings on October 28, 2025, sending its stock up 10.48% to $246.22.
Amazon.com, Inc., AMZN
The strong rally followed robust results driven by Amazon Web Services (AWS) and growing demand for AI computing capacity.
Strong Quarter with Record Revenue and Profit
Amazon posted earnings per share (EPS) of $1.95 on revenue of $180.2 billion, topping analyst estimates of $1.58 EPS and $177.8 billion in revenue. CEO Andy Jassy attributed the performance to strong AWS growth and rising demand for AI infrastructure.
$AMZN delivered 😏
• Sales $180.1B vs Est. $177.8B
• EPS $1.95 vs Est. $1.57
• AWS Sales $33.0B vs Est. $32.4BQ4 Guidance
• Sales $210B vs Est. $209B pic.twitter.com/xq8BeQqFKR— Shay Boloor (@StockSavvyShay) October 30, 2025
AWS generated $33.01 billion in revenue, up 20% year-over-year and higher than expected. Despite competition from Microsoft Azure and Google Cloud, AWS maintained dominance through scale, with revenue more than double Google’s $15.16 billion.
AWS and AI Investments Driving Momentum
Amazon’s Trainium2 chip business became a multibillion-dollar segment, growing 150% quarter over quarter. The company also unveiled Project Rainier, an AI cluster using 500,000 Trainium2 chips to enhance large-scale model training.
Jassy said Amazon will continue expanding data center capacity to meet soaring AI demand. “You’re going to see us continue to be very aggressive in investing in capacity because we see the demand,” he told analysts.
While Amazon’s AI presence trails Microsoft’s OpenAI partnership and Google’s Gemini project, the company’s collaboration with Anthropic positions AWS as a vital AI infrastructure provider.
Job Cuts and Restructuring Linked to AI Expansion
On October 28, 2025, Amazon confirmed plans to cut around 14,000 corporate roles, with layoffs potentially rising to over 30,000 next year. Jassy clarified the move was not driven by AI replacing human workers but by overhiring during the pandemic and a renewed focus on lean operations.
Beth Galetti, Amazon’s HR chief, said AI is reshaping operations but not directly replacing staff. Most cuts target entertainment, HR, recruitment, and ecommerce divisions as Amazon reorganizes to fund AI expansion and maintain profitability.
Long-Term Strategy and Financial Outlook
AWS remains Amazon’s profit engine, contributing 58% of total operating income in 2024 despite only 17% of net sales. Analysts praised the Q3 results as a turning point for AWS, noting Amazon’s regained momentum in the AI cloud race.
Jassy emphasized that AWS is “growing at a pace we haven’t seen since 2022,” signaling renewed investor confidence.
Performance Overview (as of Oct 31, 2025):
- YTD Return: 12.24% vs. S&P 500’s 16.66%
- 1-Year Return: 32.11%
- 3-Year Return: 140.38%
- 5-Year Return: 62.21%
Amazon’s strong Q3 earnings, surging AWS demand, and strategic AI focus have propelled the company back into market leadership among Big Tech peers.
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