Amazon’s Q2 Earnings Beat Expectations, but Guidance Disappoints

Amazon (AMZN) reported Q2 2025 revenue of $167.7 billion and diluted EPS of $1.68, surpassing Wall Street estimates. Despite the beat, shares fell nearly 10% after management issued Q3 operating income guidance of $18 billion (midpoint), below analysts' $19.5 billion forecast.

The e-commerce giant's revenue grew 13.3% year-over-year, accelerating from Q1. North American sales expanded at their fastest pace since Q1 2024, fueled by record Prime Day performance. At $670 billion in trailing 12-month sales, Amazon continues demonstrating remarkable scale while maintaining double-digit growth.

Investors must weigh short-term guidance concerns against Amazon's long-term position in the "Magnificent Seven" cohort. The company's cloud computing division and advertising business remain key profit drivers, though retail margins face ongoing pressure.