In the third quarter, Amazon delivered revenue of $180 billion, up 13 percent year-over-year, while net income climbed 38 percent to $X billion, driven by strong performances across its core businesses. E-commerce growth was supported by expanded fast-shipping offerings and the addition of new marketplace sellers, while overall operating margins expanded thanks to efficiency gains in fulfillment and logistics.

Amazon Web Services (AWS) returned to a 20 percent year-over--year growth rate in Q3, marking a return to its 2022 trajectory as customers accelerated cloud adoption for generative AI workloads. The proprietary Trainium2 AI chips, now a multibillion-dollar business, posted sequential growth of 150 percent, underscoring strong enterprise demand for cost-efficient AI infrastructure. Together, AWS and AI hardware contribute the bulk of the company’s operating profit and underpin future upside.

The online advertising segment reached $17.7 billion in revenue in Q3, up 24 percent year-over-year, and now accounts for nearly 10 percent of total sales. As a high-margin business, advertising is helping to offset retail cost pressures and enhances overall profitability. Continued growth in ad spend should further improve corporate margins and cash flow generation.

Despite its strong fundamentals, Amazon’s share price advanced just 5 percent in 2025, lagging its double-digit revenue and earnings growth. At a forward price-to-earnings ratio near 29 times, the stock trades below its five-year average multiple, presenting a potential entry point. With consensus estimates projecting mid-teens earnings growth over the next three years—driven by AWS, advertising and ongoing retail innovation—many investors view current levels as a rare buying opportunity.