Amazon Com Inc

Amazon's FY2025 total net sales rose 12% to $716.9B, net income increased to $77.7B, and diluted EPS reached $7.17, while free cash flow fell to $11.2B as purchases of property and equipment, net of proceeds, rose to $128.3B.

Total net sales increased 12% to $716.9B, which management attributes to increased unit sales, including sales by third-party sellers, advertising sales, and subscription services, with AWS growth reflecting increased customer usage partially offset by pricing changes primarily driven by long-term customer contracts. Net income rose to $77.7B, and the filing states the net gain in other income (expense), net of $15.2B was primarily from an upward adjustment for observable changes in price relating to nonvoting preferred stock in Anthropic and reclassification adjustments for gains on available-for-sale debt securities from convertible notes investments in Anthropic converted to nonvoting preferred stock during 2025. Free cash flow declined to $11.2B from $38.2B as purchases of property and equipment, net of proceeds from sales and incentives, rose to $128.3B from $77.7B.

Operating income of $80.0B includes a $2.5B charge recorded in Q3 2025 related to the settlement of a lawsuit with the FTC, recorded in 'Other operating expense (income), net' and impacting the North America segment, and $2.7B of estimated severance costs primarily related to planned role eliminations, of which $1.8B was recorded in Q3 2025 and $730M in Q4 2025, recorded primarily in 'Technology and infrastructure,' 'Fulfillment,' and 'Sales and marketing' and impacting all segments. Net income of $77.7B includes a $15.2B net gain in other income (expense), net, primarily from an upward adjustment for observable changes in price relating to nonvoting preferred stock in Anthropic and reclassification adjustments for gains on available-for-sale debt securities from convertible notes investments in Anthropic converted to nonvoting preferred stock during 2025. The filing does not define an adjusted or ex-item earnings total.

Capital expenditures $131.8B (prior $83.0B) (selected cash-flow amount, not necessarily total capital investment).

“Cash capital expenditures were $77.7 billion, and $128.3 billion in 2024 and 2025, which primarily reflect investments in technology infrastructure (the majority of which is to support AWS business growth) and in additional capacity to support our fulfillment network, both of which we expect to increase in 2026.”

— Filing statement

“We made cash payments, net of acquired cash, related to acquisition and other investment activity of $7.1 billion and $3.8 billion in 2024 and 2025, which primarily reflect investments in convertible notes from Anthropic, PBC (“Anthropic”), including $2.7 billion we invested in 2025.”

— Filing statement

“Cash inflows from financing activities resulted from proceeds from short-term debt, and other and long-term-debt of $5.1 billion and $25.0 billion in 2024 and 2025.”

— Filing statement

Return on equity was 18.9% (prior 20.7%) (period net income / period-end equity, not annualized); return on assets 9.5% (prior 9.5%) (period net income / period-end assets, not annualized).

First Quarter 2026 Guidance: Net sales are expected to be between $173.5 billion and $178.5 billion, or to grow between 11% and 15% compared with first quarter 2025, anticipating a favorable impact of approximately 180 basis points from foreign exchange rates. Operating income is expected to be between $16.5 billion and $21.5 billion, compared with $18.4 billion in first quarter 2025, including approximately $1 billion of higher year-over-year Amazon Leo costs as we scale in 2026, as well as investment in quick commerce and even sharper prices in our international stores business. This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.

“We believe that cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, as well as our borrowing arrangements, will be sufficient to meet our anticipated operating cash needs for at least the next twelve months.”

— Amazon.com, Inc. (MD&A, Liquidity and Capital Resources)Verified in filing

“We expect spending in technology and infrastructure will increase over time, which can negatively impact short-term free cash flow, as we add infrastructure and employees, including to support our artificial intelligence and machine learning initiatives, to support long-term growth.”

— Amazon.com, Inc. (MD&A, Overview)Verified in filing

Leverage: Identified debt as of 2025-12-31: reported debt balance of unestablished maturity scope of $65.6B. The concept behind this balance does not establish which maturities it covers. Total debt, net debt and debt-to-equity are therefore not stated.

Liquidity: Cash, cash equivalents, and marketable securities at fair value were $123.0B as of December 31, 2025, of which $7.1B was held by foreign subsidiaries. The company had no borrowings outstanding under the two unsecured revolving credit facilities or the commercial paper programs as of December 31, 2025.

Cash flow: Cash flow — operating $139.5B, investing $-142.5B, financing $9.7B.

Working capital: Current assets $229.1B vs. current liabilities $218.0B (current ratio 1.05x). Prior reported balance sheet as of 2024-12-31: $190.9B vs. $179.4B (1.06x).