5 unchanged sentences
Forward-looking statements reflect management’s current expectations and are inherently uncertain.
−Removed: Actual results and outcomes could differ materially for a variety of reasons, including, among others, fluctuations in foreign exchange rates, changes in global economic conditions, tariff and trade policies, and customer demand and spending, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which we enter into, maintain, and develop commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity.
+Added: Actual results and outcomes could differ materially for a variety of reasons, including, among others, fluctuations in foreign exchange rates and energy prices, changes in global economic conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which we enter into, maintain, and develop commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity.
In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks.
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These assumptions about future disposition of inventory are inherently uncertain and changes in our estimates and assumptions may cause us to realize material write-downs in the future.
−Removed: As a measure of sensitivity, for every 1% of additional inventory valuation allowance as of September 30, 2025, we would have recorded an additional cost of sales of approximately $435 million.
+Added: As a measure of sensitivity, for every 1% of additional inventory valuation allowance as of March 31, 2026, we would have recorded an additional cost of sales of approximately $385 million.
In addition, we enter into supplier commitments for certain electronic device components and certain products.
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Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30, Twelve Months Ended
−Removed: September 30,
+Added: March 31, Twelve Months Ended
2025 2026 2025 2026
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Financing activities (47) 52,767 (10,603) 62,475
−Removed: Our principal sources of liquidity are cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, which, at fair value, were $101.2 billion and $94.2 billion as of December 31, 2024 and September 30, 2025.
−Removed: Amounts held in foreign currencies were $25.5 billion and $20.4 billion as of December 31, 2024 and September 30, 2025.
+Added: Our principal sources of liquidity are cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, which, at fair value, were $123.0 billion and $143.1 billion as of December 31, 2025 and March 31, 2026.
+Added: Amounts held in foreign currencies were $29.7 billion and $22.1 billion as of December 31, 2025 and March 31, 2026.
Our foreign currency balances include British Pounds, Canadian Dollars, Euros, Indian Rupees, and Japanese Yen.
−Removed: Cash provided by (used in) operating activities was $26.0 billion and $35.5 billion for Q3 2024 and Q3 2025, and $70.2 billion and $85.1 billion for the nine months ended September 30, 2024 and 2025.
+Added: Cash provided by (used in) operating activities was $17.0 billion and $26.0 billion for Q1 2025 and Q1 2026.
Our operating cash flows result primarily from cash received from our consumer, seller, developer, enterprise, and content creator customers, and advertisers, offset by cash payments we make for products and services, employee compensation, payment processing and related transaction costs, operating leases, and interest payments.
Cash received from our customers and other activities generally corresponds to our net sales.
−Removed: The increase in operating cash flow for the trailing twelve months ended September 30, 2025, compared to the comparable prior year period, was due to an increase in net income, excluding non-cash expenses, and changes in working capital.
+Added: The increase in operating cash flow for the trailing twelve months ended March 31, 2026, compared to the comparable prior year period, was due to an increase in net income, excluding non-cash expenses, and changes in working capital.
Working capital at any specific point in time is subject to many variables, including variability in demand, inventory management and category expansion, the timing of cash receipts and payments, customer and vendor payment terms, and fluctuations in foreign exchange rates.
−Removed: We expect to use cash on hand to satisfy the settlement of the FTC lawsuit.
Cash provided by (used in) investing activities corresponds with cash capital expenditures, including leasehold improvements, incentives received from property and equipment vendors, proceeds from asset sales, cash outlays for acquisitions, investments in other companies and intellectual property rights, and purchases, sales, and maturities of marketable securities.
−Removed: Cash provided by (used in) investing activities was $(16.9) billion and $(26.1) billion for Q3 2024 and Q3 2025, and $(56.9) billion and $(95.3) billion for the nine months ended September 30, 2024 and 2025, with the variability caused primarily by purchases, sales, and maturities of marketable securities and cash capital expenditures.
−Removed: Cash capital expenditures were $21.3 billion and $34.2 billion during Q3 2024 and Q3 2025, and $51.6 billion and $89.9 billion for the nine months ended September 30, 2024 and 2025, which primarily reflect investments in technology infrastructure (the majority of which is to support AWS business growth) and in additional capacity to support our fulfillment network, both of which we expect to increase in 2025 and 2026.
−Removed: We made cash payments, net of acquired cash, related to acquisition and other investment activity of $622 million and $786 million during Q3 2024 and Q3 2025, and $4.5 billion and $2.4 billion for the nine months ended
−Removed: September 30, 2024 and 2025, which primarily reflect investments in convertible notes from Anthropic, including $1.3 billion we invested in Q2 2025.
−Removed: Furthermore, we will invest an additional $1.4 billion in another convertible note in Q4 2025.
−Removed: Cash provided by (used in) financing activities was $(2.8) billion and $(44) million for Q3 2024 and Q3 2025, and $(8.5) billion and $(2.6) billion for the nine months ended September 30, 2024 and 2025.
−Removed: Cash inflows from financing activities resulted from proceeds from short-term debt, and other and long-term debt of $1.7 billion and $3.2 billion for Q3 2024 and Q3 2025, and $2.6 billion and $7.9 billion for the nine months ended September 30, 2024 and 2025.
−Removed: Cash outflows from financing activities resulted from payments of short-term debt, and other, long-term debt, finance leases, and financing obligations of $4.5 billion and $3.3 billion for Q3 2024 and Q3 2025, and $11.1 billion and $10.5 billion for the nine months ended September 30, 2024 and 2025.
−Removed: Property and equipment acquired under finance leases was $186 million and $977 million during Q3 2024 and Q3 2025, and $409 million and $2.0 billion for the nine months ended September 30, 2024 and 2025.
−Removed: We had no borrowings outstanding under the two unsecured revolving credit facilities or the commercial paper programs as of September 30, 2025.
+Added: Cash provided by (used in) investing activities was $(29.8) billion and $(64.2) billion for Q1 2025 and Q1 2026, with the variability caused primarily by purchases, sales, and maturities of marketable securities and cash capital expenditures.
+Added: Cash capital expenditures were $24.3 billion and $43.2 billion during Q1 2025 and Q1 2026, which primarily reflect investments in technology infrastructure (the majority of which is to support AWS business growth) and in additional capacity to support our fulfillment network, both of which we expect to increase in 2026.
+Added: We did not have significant acquisition and other investment activity during Q1 2025.
+Added: We made cash payments, net of acquired cash, related to acquisition and other investment activity of $15.4 billion during Q1 2026.
+Added: In Q1 2026, we invested $15.0 billion in OpenAI’s Series C Preferred Stock and entered into an equity commitment letter agreement to purchase an additional $35.0 billion of OpenAI’s Series C Preferred Stock, subject to certain conditions.
+Added: We expect to fund this investment with cash on hand.
+Added: Cash provided by (used in) financing activities was $(47) million and $52.8 billion for Q1 2025 and Q1 2026.
+Added: Cash inflows from financing activities resulted from proceeds from short-term debt, and other and long-term debt of $2.6 billion and $59.5 billion for Q1 2025 and Q1 2026.
+Added: We expect to undertake additional financing activities in 2026.
+Added: Cash outflows from financing activities resulted from payments of short-term debt, and other, long-term debt, finance leases, and financing obligations of $2.6 billion and $6.7 billion for Q1 2025 and Q1 2026.
+Added: Property and equipment acquired under finance leases was $54 million and $1.6 billion during Q1 2025 and Q1 2026.
+Added: We had no borrowings outstanding under the two unsecured revolving credit facilities or the commercial paper programs as of March 31, 2026.
See Item 1 of Part I, “Financial Statements — Note 5 — Debt” for additional information.
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in those jurisdictions in which we would incur significant, additional costs upon repatriation of such amounts.
−Removed: taxable income is reduced by accelerated depreciation deductions and the resulting U.S.
−Removed: tax liability is reduced by tax credits, primarily related to the U.S.
−Removed: federal research and development credit.
−Removed: The 2025 Tax Act makes changes to the U.S.
−Removed: corporate income tax, including reinstating the option to claim 100% accelerated depreciation deductions on qualified property, with retroactive application beginning January 20, 2025 and immediate expensing of domestic research and development costs, with retroactive application beginning January 1, 2025.
−Removed: The 2025 Tax Act will significantly decrease our cash taxes in 2025.
+Added: taxable income is reduced by accelerated depreciation deductions and the amortization of previously capitalized research and development costs.
+Added: tax rules provide for enhanced accelerated depreciation deductions by allowing the election of full expensing of qualified property, as well as various alternatives for amortizing previously capitalized research and development costs.
+Added: The 2026 Notice, which applied retroactively to 2025, is expected to result in a significant decrease of 2024 and 2025 cash taxes paid.
Cash paid for U.S.
−Removed: (federal and state) and foreign income taxes (net of refunds) totaled $2.0 billion and $1.1 billion for Q3 2024 and Q3 2025, and $8.2 billion and $6.8 billion for the nine months ended September 30, 2024 and 2025.
−Removed: As of December 31, 2024 and September 30, 2025, restricted cash, cash equivalents, and marketable securities were $3.5 billion.
+Added: (federal and state) and foreign income taxes (net of refunds) totaled $877 million and $1.3 billion for Q1 2025 and Q1 2026.
+Added: As of December 31, 2025 and March 31, 2026, restricted cash, cash equivalents, and marketable securities were $3.3 billion and $2.9 billion.
See Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies” and “Financial Statements — Note 5 — Debt” for additional discussion of our principal contractual commitments, as well as our pledged assets.
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These purchase obligations and open purchase orders are generally cancellable in full or in part through the contractual provisions.
−Removed: We believe that cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, as well as our borrowing arrangements, will be sufficient to meet our anticipated operating cash needs for at least the next twelve months.
+Added: We believe that cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, as well as our borrowing arrangements and other financing activities, will be sufficient to meet our anticipated operating cash needs for at least the next twelve months.
However, any projections of future cash needs and cash flows are subject to substantial uncertainty.
−Removed: See Item 1A of Part II, “Risk Factors.” We continually evaluate opportunities to sell additional equity or debt securities, obtain credit facilities, obtain finance and operating lease arrangements, enter into financing obligations, repurchase common stock, pay dividends, or repurchase, refinance, or otherwise restructure our debt for strategic reasons or to further strengthen our financial position.
+Added: See Item 1A of Part II, “Risk Factors.” We continually evaluate opportunities to sell additional equity or debt securities, obtain credit facilities, obtain finance and operating lease arrangements, enter into financing obligations, repurchase common stock, pay dividends, repurchase, refinance, or otherwise restructure our debt, or access capital through other financing arrangements for strategic reasons or to further strengthen our financial position.
The sale of additional equity or convertible debt securities would be dilutive to our shareholders.
7 unchanged sentences
See Item 1 of Part I, “Financial Statements — Note 8 — Segment Information.”
−Removed: Macroeconomic factors, including changes in inflation and interest rates, global economic and geopolitical developments, including unpredictable shifts in global tariff and trade policies, and the development and adoption of technologies and services, including artificial intelligence, have direct and indirect impacts on our results of operations that are difficult to predict, isolate, and quantify.
+Added: Macroeconomic factors, including changes in inflation and interest rates, resource and supply volatility, global economic and geopolitical developments, including unpredictable shifts in global tariff and trade policies, and the development and adoption of technologies and services, including artificial intelligence, have direct and indirect impacts on our results of operations that are difficult to predict, isolate, and quantify.
These could affect customer demand for our products and services, our ability to forecast growth needs, expenses, and benefits from new technologies.
−Removed: We expect some or all of them to continue to impact our operations into Q4 2025.
+Added: Further, we expect to continue making additional investments in our artificial intelligence initiatives.
+Added: We expect some or all of these factors to continue to impact our results of operations into Q2 2026.
Net sales include product and service sales.
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Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2024 2025 2024 2025
North America $ 92,887 $ 104,143
5 unchanged sentences
International 5 19
−Removed: AWS 19 20 18 18
Consolidated 9 17
2 unchanged sentences
International 8 11
−Removed: AWS 19 20 18 18
Consolidated 10 15
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International 21 22
−Removed: AWS 17 18 18 19
Consolidated 100 % 100 %
−Removed: Sales increased 13% in Q3 2025, and 12% for the nine months ended September 30, 2025 compared to the comparable prior year periods.
−Removed: Changes in foreign exchange rates increased net sales by $1.5 billion for Q3 2025, and by $1.6 billion for the nine months ended September 30, 2025.
+Added: Sales increased 17% in Q1 2026 compared to the comparable prior year period.
+Added: Changes in foreign exchange rates increased net sales by $2.9 billion for Q1 2026.
For a discussion of the effect of foreign exchange rates on sales growth, see “Effect of Foreign Exchange Rates” below.
−Removed: North America sales increased 11% in Q3 2025, and 10% for the nine months ended September 30, 2025 compared to the comparable prior year periods.
+Added: North America sales increased 12% in Q1 2026 compared to the comparable prior year period.
The sales growth primarily reflects increased unit sales, including sales by third-party sellers, advertising sales, and subscription services.
Increased unit sales were driven largely by our continued focus on price, selection, and convenience for our customers, including from our fast shipping offers.
−Removed: Changes in foreign exchange rates did not significantly impact North America net sales for Q3 2025, but reduced North America net sales by $611 million for the nine months ended September 30, 2025.
−Removed: International sales increased 14% in Q3 2025, and 12% for the nine months ended September 30, 2025 compared to the comparable prior year periods.
+Added: Changes in foreign exchange rates increased North America net sales by $346 million for Q1 2026.
+Added: International sales increased 19% in Q1 2026 compared to the comparable prior year period.
The sales growth primarily reflects increased unit sales, including sales by third-party sellers, advertising sales, and subscription services.
Increased unit sales were driven largely by our continued focus on price, selection, and convenience for our customers, including from our fast shipping offers.
−Removed: Changes in foreign exchange rates increased International net sales by $1.5 billion for Q3 2025, and by $2.2 billion for the nine months ended September 30, 2025 .
−Removed: AWS sales increased 20% in Q3 2025, and 18% for the nine months ended September 30, 2025 compared to the comparable prior year periods.
+Added: Changes in foreign exchange rates increased International net sales by $2.5 billion for Q1 2026.
+Added: AWS sales increased 28% in Q1 2026 compared to the comparable prior year period.
The sales growth primarily reflects increased customer usage, partially offset by pricing changes primarily driven by long-term customer contracts.
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Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2024 2025 2024 2025
Operating Expenses:
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Cost of sales primarily consists of the purchase price of consumer products, inbound and outbound shipping costs, including costs related to sortation and delivery centers and where we are the transportation service provider, and digital media content costs where we record revenue gross, including video and music.
−Removed: The increase in cost of sales in Q3 2025 and for the nine months ended September 30, 2025, compared to the comparable prior year periods, is primarily due to increased product and shipping costs resulting from increased sales, partially offset by operational efficiencies.
−Removed: Changes in foreign exchange rates increased cost of sales by $929 million for Q3 2025, and by $917 million for the nine months ended September 30, 2025.
−Removed: Shipping costs were $23.5 billion and $25.3 billion in Q3 2024 and Q3 2025, and $67.3 billion and $71.2 billion for the nine months ended September 30, 2024 and 2025.
+Added: The increase in cost of sales in Q1 2026, compared to the comparable prior year period, is primarily due to increased product and shipping costs resulting from increased sales, partially offset by operational efficiencies.
+Added: Changes in foreign exchange rates increased cost of sales by $1.8 billion for Q1 2026.
+Added: Shipping costs were $22.5 billion and $25.7 billion in Q1 2025 and Q1 2026.
Shipping costs to receive products from our suppliers are included in our inventory and recognized as cost of sales upon sale of products to our customers.
We expect our cost of shipping to continue to increase to the extent our customers accept and use our shipping offers at an increasing rate, we use more expensive shipping methods, and we offer additional services.
−Removed: We seek to mitigate costs of shipping over time in part through achieving higher sales volumes,
−Removed: optimizing our fulfillment network, negotiating better terms with our suppliers, and achieving better operating efficiencies.
+Added: We seek to mitigate costs of shipping over time in part through achieving higher sales volumes, optimizing our fulfillment network, negotiating better terms with our suppliers, and achieving better operating efficiencies.
We believe that offering low prices to our customers is fundamental to our future success, and one way we offer lower prices is through shipping offers.
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Additionally, sales by our sellers have higher payment processing and related transaction costs as a percentage of net sales compared to our retail sales because payment processing costs are based on the gross purchase price of underlying transactions.
−Removed: The increase in fulfillment costs in Q3 2025 and for the nine months ended September 30, 2025, compared to the comparable prior year periods, is primarily due to increased sales and investments in our fulfillment network, partially offset by operational efficiencies.
−Removed: Changes in foreign exchange rates increased fulfillment costs by $214 million for Q3 2025, and by $209 million for the nine months ended September 30, 2025.
+Added: The increase in fulfillment costs in Q1 2026, compared to the comparable prior year period, is primarily due to increased sales and investments in our fulfillment network, partially offset by operational efficiencies.
+Added: Changes in foreign exchange rates increased fulfillment costs by $478 million for Q1 2026.
We seek to expand our fulfillment network to accommodate a greater selection and in-stock inventory levels and to meet anticipated shipment volumes from sales of our own products as well as sales by third parties for which we provide the fulfillment services.
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Our technology and infrastructure investment and capital spending projects often support a variety of product and service offerings due to geographic expansion and the cross-functionality of our systems and operations.
−Removed: We expect spending in technology and infrastructure to increase over time as we continue to add employees and infrastructure.
+Added: We expect spending in technology and infrastructure to increase over time as we continue to add infrastructure and employees, including to support our artificial intelligence and machine learning initiatives.
These costs are allocated to segments based on usage.
−Removed: The increase in technology and infrastructure costs in Q3 2025 and for the nine months ended September 30, 2025, compared to the comparable prior year periods, is primarily due to an increase in spending on infrastructure, including depreciation and amortization, and severance costs.
−Removed: Changes in foreign exchange rates increased technology and infrastructure costs by $128 million for Q3 2025, but did not significantly impact technology and infrastructure costs for the nine months ended September 30, 2025.
+Added: The increase in technology and infrastructure costs in Q1 2026, compared to the comparable prior year period, is primarily due to an increase in spending on infrastructure, including depreciation and amortization.
+Added: Changes in foreign exchange rates increased technology and infrastructure costs by $374 million for Q1 2026.
We currently expense the majority of the costs associated with the development of our satellite network for global broadband service (including production, launch, and payroll costs, and launch services deposits upon launch).
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Sales and marketing costs include advertising and payroll and related expenses for personnel engaged in marketing and selling activities, including sales commissions related to AWS.
−Removed: We direct customers to our stores primarily through a number of marketing channels, such as our sponsored search, third-party customer referrals, social and online advertising, television advertising, and other initiatives.
+Added: We direct customers to our stores primarily through a number of marketing channels, such as our third-party customer referrals, sponsored search, social and online advertising, television advertising, and other initiatives.
Our marketing costs are largely variable, based on growth in sales and changes in rates.
−Removed: extent there is increased or decreased competition for these traffic sources, or to the extent our mix of these channels shifts, we would expect to see a corresponding change in our marketing costs.
−Removed: The increase in sales and marketing costs in Q3 2025, compared to the comparable prior year period, is primarily due to severance costs and increased advertising expenses.
−Removed: The increase in sales and marketing costs for the nine months ended September 30, 2025, compared to the comparable prior year period, is primarily due to increased advertising expenses.
+Added: To the extent there is increased or decreased competition for these traffic sources, or to the extent our mix of these channels shifts, we would expect to see a corresponding change in our marketing costs.
+Added: Sales and marketing costs in Q1 2026 did not significantly change compared to the comparable prior year period.
+Added: Changes in foreign exchange rates increased sales and marketing costs by $233 million for Q1 2026.
While costs associated with Amazon Prime membership benefits and other shipping offers are not included in sales and marketing expense, we view these offers as effective worldwide marketing tools, and intend to continue offering them indefinitely.
General and Administrative
−Removed: The increase in general and administrative costs in Q3 2025, compared to the comparable prior year period, is primarily due to severance costs.
−Removed: General and administrative costs for the nine months ended September 30, 2025 did not significantly change compared to the comparable prior year period.
+Added: General and administrative costs in Q1 2026 did not significantly change compared to the comparable prior year period.
Other Operating Expense (Income), Net
−Removed: Other operating expense (income), net was $262 million and $2.9 billion for Q3 2024 and Q3 2025, and $587 million and $3.4 billion for the nine months ended September 30, 2024 and 2025, and other than including the settlement of a lawsuit with the FTC for the three and nine months ended September 30, 2025, was primarily related to asset impairments and the amortization of intangible assets.
+Added: Other operating expense (income), net was $308 million and $447 million for Q1 2025 and Q1 2026, and was primarily related to charges associated with damaged data centers in the Middle East in Q1 2026, asset impairments, and the amortization of intangible assets.
Operating Income
1 unchanged sentence
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2024 2025 2024 2025
Operating Income
3 unchanged sentences
Consolidated $ 18,405 $ 23,852
−Removed: Operating income was $17.4 billion in Q3 2024 and Q3 2025, and $47.4 billion for the nine months ended September 30, 2024 and $55.0 billion for the nine months ended September 30, 2025.
−Removed: Operating income in Q3 2025 includes charges of $2.5 billion related to the settlement of a lawsuit with the FTC and $1.8 billion of estimated severance costs primarily related to planned role eliminations.
+Added: Operating income increased from $18.4 billion in Q1 2025 to $23.9 billion in Q1 2026.
We believe that operating income is a more meaningful measure than gross profit and gross margin due to the diversity of our product categories and services.
For more information on the operating expenses that impact segment operating income, see “Operating Expenses” and the descriptions of operating expense line item changes on pages 29 to 31, and “Note 8 — Segment Information” on page 21.
−Removed: The decrease in North America operating income in Q3 2025, compared to the comparable prior year period, is primarily due to increased other operating, fulfillment, technology and infrastructure, and shipping costs, inclusive of the FTC settlement and severance costs, partially offset by increased unit sales and increased advertising sales.
−Removed: The increase in North America operating income for the nine months ended September 30, 2025, compared to the comparable prior year period, is primarily due to increased unit sales and increased advertising sales, partially offset by increased fulfillment, technology and infrastructure, other operating, and shipping costs.
−Removed: Changes in foreign exchange rates did not significantly impact operating income for Q3 2025, but negatively impacted operating income by $131 million for the nine months ended September 30, 2025.
−Removed: The decrease in International operating income in Q3 2025, compared to the comparable prior year period, is primarily due to increased shipping and fulfillment costs, inclusive of severance costs, partially offset by increased unit sales and increased advertising sales.
−Removed: The increase in International operating income for the nine months ended September 30, 2025, compared to the comparable prior year period, is primarily due to increased unit sales and increased advertising sales, partially offset by increased fulfillment and shipping costs.
−Removed: Changes in foreign exchange rates positively impacted operating income by $302 million for Q3 2025, and by $584 million for nine months ended September 30, 2025.
−Removed: The increase in AWS operating income in Q3 2025, compared to the comparable prior year period, is primarily due to increased sales, partially offset by spending on technology infrastructure that was primarily driven by additional investments to support AWS business growth and severance costs.
−Removed: The increase in AWS operating income for the nine months ended September
−Removed: 30, 2025, compared to the comparable prior year period, is primarily due to increased sales, partially offset by spending on technology infrastructure that was primarily driven by additional investments to support AWS business growth.
−Removed: Changes in foreign exchange rates negatively impacted operating income by $120 million for Q3 2025, and by $118 million for the nine months ended September 30, 2025.
+Added: The increase in North America operating income in Q1 2026, compared to the comparable prior year period, is primarily due to increased unit sales and increased advertising sales, partially offset by increased shipping, fulfillment, and technology and infrastructure costs.
+Added: The increase in International operating income in Q1 2026, compared to the comparable prior year period, is primarily due to increased unit sales and increased advertising sales, partially offset by increased shipping and fulfillment costs.
+Added: Changes in foreign exchange rates positively impacted operating income by $347 million for Q1 2026.
+Added: The increase in AWS operating income in Q1 2026, compared to the comparable prior year period, is primarily due to increased sales, partially offset by spending on technology infrastructure that was primarily driven by additional investments to support AWS business growth.
+Added: Changes in foreign exchange rates negatively impacted operating income by $339 million for Q1 2026.
Interest Income and Expense
−Removed: Our interest income was $1.3 billion and $1.1 billion during Q3 2024 and Q3 2025, and $3.4 billion and $3.3 billion for the nine months ended September 30, 2024 and 2025, primarily due to a higher average balance of invested funds at prevailing rates.
+Added: Our interest income was $1.1 billion during Q1 2025 and Q1 2026, primarily due to a decrease in prevailing rates, offset by a higher average balance of invested funds.
We generally invest our excess cash in investment grade short- to intermediate-term marketable debt securities and AAA-rated money market funds.
Our interest income corresponds with the average balance of invested funds based on the prevailing rates, which vary depending on the geographies and currencies in which they are invested.
−Removed: Interest expense was $603 million and $538 million during Q3 2024 and Q3 2025, and $1.8 billion and $1.6 billion for the nine months ended September 30, 2024 and 2025, and was primarily related to debt and finance leases.
+Added: Interest expense was $541 million and $800 million during Q1 2025 and Q1 2026, and was primarily related to debt and finance leases.
See Item 1 of Part I, “Financial Statements — Note 3 — Leases and Note 5 — Debt” for additional information.
Other Income (Expense), Net
−Removed: Other income (expense), net was $(27) million and $10.2 billion during Q3 2024 and Q3 2025, and $(2.7) billion and $14.1 billion for the nine months ended September 30, 2024 and 2025.
+Added: Other income (expense), net was $2.7 billion and $15.6 billion during Q1 2025 and Q1 2026.
The primary components of other income (expense), net are related to equity securities valuations and adjustments, equity warrant valuations, foreign currency, and reclassification adjustments for gains (losses) on available-for-sale debt securities.
−Removed: The net loss of $(2.7) billion for the nine months ended September 30, 2024 is primarily from the marketable securities loss from our equity investment in Rivian.
−Removed: The net gain of $10.2 billion in Q3 2025 and $14.1 billion for the nine months ended September 30, 2025 is primarily from an upward adjustment for observable changes in price relating to our nonvoting preferred stock in Anthropic, and the reclassification adjustments for the gains on available-for-sale debt securities from the portions of our convertible notes investments in Anthropic that were converted to nonvoting preferred stock during Q3 2025 and for the nine months ended September 30, 2025.
−Removed: Our income tax provision for the nine months ended September 30, 2024 was $6.9 billion, which included $2.4 billion of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation.
−Removed: Our income tax provision for the nine months ended September 30, 2025 was $14.1 billion, which included $354 million of net discrete tax expense primarily attributable to the net gains from our investments in Anthropic, partially offset by excess tax benefits from stock-based compensation.
−Removed: The 2025 Tax Act increased our income tax provision for the nine months ended September 30, 2025, primarily due to a decrease in the foreign income deduction.
+Added: The net gain of $2.7 billion in Q1 2025 is primarily from the reclassification adjustment for the gain on available-for-sale debt securities from the portion of our convertible notes investments in Anthropic that were converted to nonvoting preferred stock during Q1 2025.
+Added: The net gain of $15.6 billion in Q1 2026 is primarily from an upward adjustment for observable changes in price relating to our nonvoting preferred stock in
+Added: Anthropic and the reclassification adjustment for the gains on available-for-sale debt securities from the portions of our convertible notes investments in Anthropic that were converted to nonvoting preferred stock during Q1 2026.
+Added: Our income tax provision for the three months ended March 31, 2025 was $4.6 billion, which included $559 million of net discrete tax expense.
+Added: Our income tax provision for the three months ended March 31, 2026 was $9.6 billion, which included $4.1 billion of net discrete tax expense primarily attributable to the net gains from our investments in Anthropic.
See Item 1 of Part I, “Financial Statements — Note 7 — Income Taxes” for additional information.
5 unchanged sentences
We provide a free cash flow measure because we believe it provides additional perspective on the impact of acquiring property and equipment with cash.
−Removed: Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.” The following is a reconciliation of free cash flow to the most comparable GAAP cash flow measure, “Net cash provided by (used in) operating activities,” for the trailing twelve months ended September 30, 2024 and 2025 (in millions):
+Added: Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.” The following is a reconciliation of free cash flow to the most comparable GAAP cash flow measure, “Net cash provided by (used in) operating activities,” for the trailing twelve months ended March 31, 2025 and 2026 (in millions):
Twelve Months Ended
−Removed: September 30,
Net cash provided by (used in) operating activities $ 113,903 $ 148,531
12 unchanged sentences
Dollar is as follows (in millions):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2025 2024 2025
−Removed: Reported Exchange
−Removed: Effect (1) At Prior
−Removed: Rates (2) As Reported Exchange
−Removed: Effect (1) At Prior
+Added: Three Months Ended March 31,
Reported Exchange
8 unchanged sentences
(2) Represents the outcome that would have resulted had foreign exchange rates in the reported period been the same as those in effect in the comparable prior year period for operating results.
−Removed: We provided guidance on October 30, 2025, in our earnings release furnished on Form 8-K as set forth below.
−Removed: These forward-looking statements reflect Amazon.com’s expectations as of October 30, 2025, and are subject to substantial uncertainty.
−Removed: Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, as well as those outlined in Item 1A of Part II, “Risk Factors.”
−Removed: Fourth Quarter 2025 Guidance
−Removed: • Net sales are expected to be between $206.0 billion and $213.0 billion, or to grow between 10% and 13% compared with fourth quarter 2024.
−Removed: This guidance anticipates a favorable impact of approximately 190 basis points from foreign exchange rates.
−Removed: • Operating income is expected to be between $21.0 billion and $26.0 billion, compared with $21.2 billion in fourth quarter 2024.
+Added: We provided guidance on April 29, 2026, in our earnings release furnished on Form 8-K as set forth below.
+Added: These forward-looking statements reflect Amazon.com’s expectations as of April 29, 2026, and are subject to substantial uncertainty.
+Added: Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, as well as those outlined in Item 1A of Part II, “Risk Factors.”
+Added: Second Quarter 2026 Guidance
+Added: • Net sales are expected to be between $194.0 billion and $199.0 billion, or to grow between 16% and 19% compared with second quarter 2025.
+Added: This guidance anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates.
+Added: • Operating income is expected to be between $20.0 billion and $24.0 billion, compared with $19.2 billion in second quarter 2025.
+Added: • This guidance assumes that Prime Day occurs in second quarter 2026.
• This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.