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Amazon Posted higher fiscal third-quarter profit and sales than a year earlier, as the online giant continued to attract buyers looking for good prices while inflation rose again.
The results declared on Thursday won wall Street Expectations. The company’s core cloud computing arm also beat analysts’ expectations. But Amazon issued a cautious sales outlook for the fiscal fourth quarter, citing overall economic uncertainty and President donald trumpTariff of.
sharesHowever, it rose 11% in after-hours trading.
Analysts are analyzing Amazon’s results to gauge how shoppers are spending the holiday season and how the online giant is managing cost increases from Trump’s tariffs.
But Seattle-based Amazon is also under pressure to rebuild confidence in its computing arm among investors Amazon Web Services It is as powerful as Microsoft’s Azure and Google’s Google Cloud platform. After 17.5% growth in the fiscal second quarter, Amazon delivered a better-than-expected 20% growth for AWS. Amazon Chairman and CEO Andy Jassy said in a statement that AWS is growing at a pace not seen since 2022.
“We are seeing strong momentum and growth at Amazon as AI drives meaningful improvements in every corner of our business,” Jassy said in a statement.
Jassy also said that in stores, Amazon continues to realize the benefits of innovating across its fulfillment network, and is on track to deliver the fastest speeds to Prime members again this year, expand same-day delivery of perishable groceries to more than 2,300 communities by the end of the year, and double the number of rural communities with access to Amazon’s same-day and next-day delivery.
Amazon is increasingly automating its warehouses, raising big questions about how many workers it will need in the future.
Indeed, Amazon announced Tuesday that it is cutting nearly 14,000 corporate jobs as it increases spending on artificial intelligence and cuts costs elsewhere. Teams and individuals affected by the job cuts were notified Tuesday. Amazon has approximately 350,000 corporate employees and a total workforce of approximately 1.56 million. The cuts reduce its corporate workforce by about 4%.
Late last month, Amazon unveiled a new robotics system — which is being tested in South Carolina — for its warehouses that coordinates multiple arms to perform picking, storing and consolidating tasks simultaneously. The technology effectively turns three assembly lines into one, the company said.
Amazon is also testing an AI agent that helps human managers deploy workers and avoid bottlenecks. The company said the system allows operators to spend less time analyzing dashboards and more time training teams, creating a safer work environment.
Amazon’s strategies appear to be powering its latest results.
Amazon reported net income of $21.12 billion, or $1.95 per share, for the quarter ended September 30. That’s up from $15.33 billion, or $1.43 per share, a year earlier.
Analysts had expected $1.57 per share for the quarter, according to FactSet.
Amazon’s sales rose to $180.2 billion from $158.88 billion in the same period last year.
Analysts had expected $177.91 billion, according to FactSet.
The company said it expects sales to be between $206 billion and $213 billion in the fourth quarter of the fiscal year. Analysts expected $208.41 billion, according to FactSet.