Amazon Revenues Up 14 Percent to $213.4 Billion

Amazon reported that it earned a net income of $21.2 billion on revenues of $213.4 billion in the quarter ending December 31, 2025. Those figures represent gains of 5.7 percent and 14 percent, respectively, year-over-year (YOY).

Amazon also reported its full-year earnings, with a net income of $77.7 billion on revenues of $716.9 billion, gains of 24 percent and 12.4 percent, respectively, YOY.

“We’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” Amazon president and CEO Andy Jassy said. “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital.”

AWS revenues jumped 24 percent to $35.6 billion in the quarter, its strongest growth in over three years. For the full year, AWS earned $128.7 billion, a gain of 20 percent YOY. Those are strong numbers, but they trail Microsoft Azure growth, which hit 39 percent in the same quarter.

Worse, the $200 billion in capex spending that Mr. Jassy casually tossed out there like a Bond villain represents an increase of 56 percent YOY. But it’s also significantly more than the $175 billion to $185 billion Google said it would spend on AI infrastructure this year. I predict that Microsoft will spend over $150 billion on AI-based capex this year as well.

Amazon shares fell almost 10 percent in after-hours trading. Perhaps its rumored $50 billion investment in money toilet OpenAI can trigger an even bigger downfall.