Amazon (AMZN) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales reached $187.8B, up 10% year-over-year, with operating income at $21.2B, up 61%, and net income doubling to $20.0B.

• Trailing twelve-month net sales were $638.0B, up 11% year-over-year, with TTM operating income at $68.6B and net income at $59.2B.

• AWS led growth with Q4 revenue of $28.8B, up 19% year-over-year, and operating income of $10.6B, up 48%.

• Prime membership, advertising ($17.3B, up 18%), and record delivery speeds highlighted operational achievements.

• Major AI/ML innovations launched, including Trainium2 chips, Amazon Nova models, and AWS Bedrock features.

Financial highlights

• Q4 operating cash flow rose 36% year-over-year to $115.9B; free cash flow (TTM) was $38.2B.

• Gross margin improved, with Q4 operating margin at 11.3% and full-year net margin at 9.3%.

• Cash and cash equivalents increased to $78.8B at year-end; stockholders’ equity rose to $286.0B.

• Free cash flow less principal repayments of finance leases and financing obligations (TTM) was $35.5B.

• Common shares outstanding at Q4 2024 were 10,593 million; stock-based awards outstanding were 283 million.

Outlook and guidance

• Q1 2025 net sales expected between $151.0B and $155.5B, up 5–9% year-over-year, with a $2.1B FX headwind.

• Q1 2025 operating income projected at $14.0B–$18.0B.

• Leap year in Q1 2024 contributed $1.5B in additional net sales.

• Full-year 2025 capital investments expected to be similar to 2024, with majority for AWS and AI infrastructure.