Amazon’s international segment delivered a 14% year-over-year revenue increase in Q3, led by double-digit gains in India and Latin America. In India, Prime membership surpassed 25 million subscribers for the first time, while gross merchandise volume on Amazon.in rose 18%. In Brazil and Mexico, investments in warehouse capacity expanded fulfillment space by 30% over the past 12 months, reducing average delivery times by two days and supporting a 16% jump in local sales.

In North America, Amazon’s e-commerce business grew revenue by 11% in Q3, but adjusted operating income climbed 28%, reflecting efficiencies from robotics and AI-driven inventory placement. Meanwhile AWS revenue rose 20% to $33 billion, driven by strong demand for AI-optimized compute. The unit secured a seven-year, $38 billion contract to supply computing power to OpenAI and opened a dedicated data center for Anthropic’s AI workloads, positioning AWS for continued margin expansion in 2026.

In January, Amazon rolled out Health AI within its One Medical app, leveraging Bedrock language models to provide personalized member support. The tool references patient medical records and lab results to answer questions, manage medications and schedule appointments. One Medical, acquired for $3.9 billion in 2023, now offers Health AI to its 800 thousand paid members, integrating clinical protocols that flag cases requiring in-person care and aiming to reduce administrative workload for physicians by up to 20%.

At the World Economic Forum in Davos, CEO Andy Jassy warned that U.S. import tariffs are beginning to show up in consumer prices as third-party sellers exhaust pre-tariff stockpiles. With retail operating margins typically in the mid-single digits, a 10% increase in vendor costs leaves limited room to absorb expenses. Jassy noted that some sellers are passing through higher costs, while others are opting to absorb them to maintain market share, a dynamic that could pressure Amazon’s retail margins in the coming quarters.