Amazon Q1 EPS Soars as AWS Grows 28% but CapEx Jumps 77%
Amazon posted Q1 EPS of $2.78 and revenue of $181.5 billion, surpassing estimates and driving AWS revenue up 28% with a $364 billion backlog. Free cash flow fell to $1.2 billion after capital expenditure surged 77% to $44.2 billion, reflecting heavy AI infrastructure and chip commitments.
1. Q1 Financial Results
In the first quarter, Amazon delivered EPS of $2.78 outperforming the $1.63 estimate, with revenue of $181.5 billion exceeding the $177.1 billion projection, driven by strong performance across cloud, retail, advertising and subscription segments.
2. AWS Performance and Backlog
Amazon Web Services recorded 28% year-over-year revenue growth, its fastest in 15 quarters, and reported a $364 billion contracted backlog, highlighting continued demand for cloud computing and AI infrastructure services.
3. Capital Expenditure and Cash Flow
Capital spending climbed 77% to $44.2 billion in Q1 as Amazon accelerated investment in data centers, AI chips, including a 2 GW Trainium commitment and up to 5 GW for Anthropic, which contributed to a drop in free cash flow to $1.2 billion.