Amazon.com reported first-quarter revenue growth that fell short of expectations, with cloud unit AWS recording a 16.9% increase in quarterly revenue to $29.27 billion, missing forecasts. The company’s shares dropped as much as 5% before recovering partially.
AWS missed estimates of 17.4% growth and $30.9 billion in sales. The slowdown in growth has raised concerns about the impact of tariffs on retailers like Amazon. Some sellers have expressed plans to skip Prime Day sales due to uncertainty.
Despite this, AWS forecasted second-quarter net sales between $159 billion and $164 billion, largely above estimates. Amazon’s total revenue for the first quarter was $155.7 billion, slightly above analyst expectations. The company expects operating income to be between $13 billion and $17.5 billion, lower than the average estimate of $17.7 billion.
CEO Andy Jassy attributed the delay in demand despite the imposition of tariffs, citing ” heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact.” However, growth in revenue from third-party seller services more than halved to 7% in the first quarter.
Amazon’s forecast for second-quarter sales was above estimates, providing a reassuring sign to investors. The company remains focused on keeping retail prices low, without specifying details. Amazon received criticism from the White House regarding its consideration of listing import charges on certain goods due to U.S. tariffs, but denied any such plan for its main website.
Source: https://www.reuters.com/business/retail-consumer/amazon-forecasts-quarterly-revenue-largely-above-estimates-2025-05-01