Amazon (AMZN) Q3 2024 earnings summary

Executive summary

• Net sales reached $158.9 billion in Q3 2024, up 11% year-over-year, with strong growth across all segments and record Prime Day events.

• Operating income rose to $17.4 billion from $11.2 billion in Q3 2023, a 56% increase, reflecting improved profitability and efficiencies.

• Net income increased to $15.3 billion ($1.43 per diluted share), up from $9.9 billion ($0.94 per diluted share) a year ago.

• AWS revenue grew 19% year-over-year to $27.5 billion, with significant growth in generative AI services and operating income expansion.

• Free cash flow for the trailing twelve months more than doubled to $47.7 billion.

Financial highlights

• Q3 2024 net sales: $158.9 billion (+11% year-over-year); operating income: $17.4 billion (up from $11.2 billion); net income: $15.3 billion (up from $9.9 billion).

• Diluted EPS: $1.43 in Q3 2024, up from $0.94 in Q3 2023.

• Free cash flow (TTM): $47.7 billion, up from $21.4 billion a year ago; operating cash flow (TTM) surged 57% to $112.7 billion.

• Gross margin improved as cost of sales declined to 51.0% of net sales in Q3 2024; operating margin rose to 11%.

• Cash, cash equivalents, and marketable securities: $88.1 billion as of September 30, 2024.

Outlook and guidance

• Q4 2024 net sales expected between $181.5 billion and $188.5 billion, 7–11% growth over Q4 2023.

• Q4 2024 operating income guidance: $16.0 billion–$20.0 billion, up from $13.2 billion in Q4 2023.

• Capital investments expected to reach $75 billion in 2024, with the majority allocated to AWS and AI infrastructure.

• CapEx in 2025 is expected to exceed 2024, driven by generative AI demand.

• Guidance assumes no major acquisitions, restructurings, or legal settlements.