Amazon.com, Inc. released its fourth quarter financial results for the period ending December 31, 2025, reflecting positive growth across multiple segments. Net sales reached an impressive $213.4 billion, marking a 14% increase from $187.8 billion in the same quarter last year. Excluding a favorable $2.8 billion impact due to foreign exchange variations, net sales still increased by 12%, highlighting a solid performance despite global market challenges.
The Amazon Web Services (AWS) segment witnessed remarkable growth, with sales surging 24% year-over-year to $35.6 billion. "AWS growing 24% (our fastest growth in 13 quarters) … we’re continuing to innovate at a rapid rate," said Andy Jassy, President and CEO of Amazon. This substantial growth in AWS is complemented by significant advancements in their product offerings, positioning the company for continued success.
The international market contributed to this growth, recording sales of $50.7 billion, a 17% increase year-over-year, or an 11% increase when adjusted for foreign exchange fluctuations. Additionally, North America segment sales rose by 10%, totaling $127.1 billion. With these figures, Amazon has demonstrated its ability to effectively adapt and thrive in varied markets.
Operating income in Q4 experienced a boost, increasing to $25.0 billion compared to $21.2 billion in the previous year. It is important to note that this figure includes special charges totaling $2.4 billion, which encompassed $1.1 billion for resolving tax disputes in Italy, $730 million for estimated severance costs, and $610 million in asset impairments primarily related to physical stores. Without these one-time charges, operating income would have reached $27.4 billion.
Meanwhile, AWS segment operating income was reported at $12.5 billion, up from $10.6 billion a year earlier. While the International segment's operating income dropped slightly to $1.0 billion from $1.3 billion, the North America segment showed a robust increase, recording $11.5 billion compared to $9.3 billion in Q4 2024.
Looking at the complete financial picture for 2025, Amazon reported net sales of $716.9 billion, a 12% increase from $638.0 billion in 2024. The AWS segment, in particular, generated $128.7 billion, reflecting a 20% increase year-over-year. "We expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital," Jassy elaborated, pointing to significant opportunities in sectors such as AI, robotics, and advanced cloud technologies.
The ongoing innovation within AWS is particularly noteworthy. The launch of new custom chips has allowed AWS to gain significant momentum. The introduction of Graviton5, which is touted as AWS's most powerful CPU, is currently utilized by over 90% of the top 1,000 AWS customers. According to Amazon, Graviton CPUs can improve application performance and help reduce operational costs.
Furthermore, Trainium3 has also started delivering production workloads, and its supply is set to be fully committed by mid-2026. "Trainium and Graviton now have a combined annual revenue run rate of over $10 billion and growing at a triple digit percentage year-over-year," Jassy noted, highlighting the successful adoption of these advanced technologies.
This growth momentum also extends to other sectors, with Amazon making strides in its advertising revenue as well as its physical store sales. Amazon continues to evolve its operations in the cloud computing realm while addressing customer needs efficiently.
In closing, the introduction of capabilities for Amazon Bedrock AgentCore signifies Amazon's commitment to remaining at the forefront of technological advancements in cloud computing. The company's strong market position and its strategic approach to innovation set it on a promising trajectory for 2026 and beyond. As AWS continues to experience robust growth and investments in emerging technologies are made, Amazon seems poised for ongoing success in a competitive landscape.