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Amazon Q3 Revenue Growth Insights
In the third quarter of 2025, Amazon (NASDAQ: AMZN) reported total revenue of $180.2 billion, a 13% increase year over year, primarily driven by its advertising services and cloud computing division, Amazon Web Services (AWS). AWS revenue grew by 20%, contributing to 66% of Amazon’s operating income despite representing only 18% of the total revenue.
While Amazon’s e-commerce segment remained the largest source of revenue at $67.4 billion, it only grew by 10%, making it one of the slower segments for the company. The overall performance indicates strong growth potential for 2026, particularly in AWS and advertising, which saw a 24% increase in revenue during Q3.
However, Amazon’s stock is currently trading at a slight premium with a price-to-earnings ratio near 30 times next year’s earnings, suggesting potential limitations on future upside if performance does not meet expectations.
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