US EditionAmazon Misses 4Q Profit Estimates Despite Better-than Expected Growth in Cloud Computing Business
Amazon's AWS unit grew 24% in Q4 as sales rose 14% despite a profit miss; the company plans $200 billion capital spending and job cuts amid AI investments.
- Amazon, the Seattle-based e-commerce company, reported 14% sales growth and 24% AWS expansion in Q4 2025, but net income of $21.2 billion missed analysts' $1.97 EPS estimate.
- Amazon said it is stepping up capital expenditure to $200 billion this year to invest in AI, robots, semiconductors and satellites, driven by strong holiday spending and cloud demand.
- Amazon is cutting about 16,000 corporate jobs and about 5,000 retail workers after closing almost all Amazon Go and Amazon Fresh stores last week, with some converting to Whole Foods.
- Amazon remains under pressure to show AWS can match Microsoft Azure and Google Cloud, with analysts projecting $175.6 billion for Q1 and guidance between $173.5 billion and $178.5 billion.
- With other Big Tech boosting AI spending, analysts are watching holiday retail results for signals about 2026, as Amazon's capex rises amid economic uncertainty.
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Associated Press News
Amazon misses 4Q profit estimates despite better-than expected growth in cloud computing business
Amazon sales surged 14% during the fourth quarter, helped by strong holiday spending and better-than-expected growth in its cloud computing unit.
Like its rivals Google and Microsoft, Amazon recorded a massive turnover in the last quarter but scalded investors at the same time announcing an explosion of its planned spending in the infrastructure race for artificial intelligence.
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