Amazon (AMZN) had an amazing Q3-2025, with upbeat guidance.

The stock has jumped 10% Post Market on the back of stellar AWS results, which did really well with 20% growth.

Q3 GAAP EPS of $1.95 (+16% Y/Y) beats by $0.39.

Revenue of $180.2B (+13.4% Y/Y) beats by $2.44B.

North America - sales increased 11% year-over-year to $106.3Bn

International - sales grew faster at 14% year-over-year to $40.9 billion, or increased 10% excluding changes in foreign exchange rates.

AWS segment sales increased 20% year-over-year to $33.0 billion. The market leader is still growing fast even on higher bases.

Fourth Quarter 2025 Guidance

Net sales are expected to be between $206.0 billion and $213.0 billion handily improving over the previous $173.2B consensus,  another quarter of healthy growth between 10% and 13% compared with fourth quarter 2024. (This guidance anticipates a favorable impact of approximately 190 basis points from foreign exchange rates.)

Operating income forecast between $21.0Bn-26.0Bn.

Capex - $90Bn in the first 9 months of 2025, expanding to $125Bn for 2025.

Key takeaways

According to the Wall Street Journal, Amazon is having a hard time meeting demand.

Jassy said customers were buying up cloud-computing and AI services as fast as Amazon could make them available in light of its capacity constraints.

“Today overall in the industry, maybe the bottleneck is power,” Jassy said. “I think at some point it might move to chips. But we’re bringing in quite a bit of capacity and as fast as we’re bringing it in right now, we’re monetizing it.”Jassy said Amazon has doubled its data center capacity since 2022 and expected it to double again before the end of 2027.

Amazon is doubling down on AI, 

The company unveiled a trio of new technologies Wednesday that it’s testing or preparing to deploy in its warehouses and delivery vans. They include a robot arm called Blue Jay, designed to sort packages; an AI agent called Eluna, intended to help human managers deploy workers and avoid bottlenecks; and augmented-reality glasses to be worn by delivery drivers in the field.

I had previously posted on Amazon's Sum Of Parts Valuation, stating that the markets were not valuing Amazon correctly. I own Amazon and believe it is worth buying on declines.