
Amazon Q2: Ad Revenue at Over $15 bn for the Quarter
Amazon’s Q2 earnings for 2025 were a study in contrast. The company beat analyst expectations on both revenue and profit, but a lukewarm outlook for the coming quarter cooled investor enthusiasm and clipped post-market trading gains. For the quarter ending June 30, Amazon reported net sales of $167.7 billion, up nearly 13 percent from the same period last year.
The company’s advertising revenue was a major highlight of the quarter, with ad revenue reaching over $15 billion for the first time. This represents a staggering 23% jump from the same period last year, demonstrating the continued growth and dominance of Amazon’s advertising business. The e-commerce giant’s ability to attract and retain advertisers has been a key driver of its success, and this quarter’s results are no exception.
Amazon’s advertising business has been growing rapidly in recent years, thanks in part to the company’s vast user base and its ability to offer targeted and effective advertising solutions. The company’s advertising platform, Amazon Advertising, allows businesses to reach customers across a range of devices and platforms, including Amazon’s e-commerce site, its mobile app, and its popular streaming services.
In addition to its advertising revenue, Amazon also reported strong growth in its cloud computing business, Amazon Web Services (AWS). AWS revenue reached $19.1 billion in the quarter, up 33% from the same period last year. This represents a significant milestone for AWS, which has become a major player in the cloud computing market.
Despite the strong revenue and profit growth, Amazon’s outlook for the coming quarter was somewhat muted. The company guided for net sales of between $170 billion and $180 billion, which represents a growth rate of around 10% year-over-year. This is slightly below analyst expectations, which had been calling for net sales of around $185 billion.
Amazon’s CEO, Andy Jassy, attributed the company’s cautious outlook to a number of factors, including the ongoing impact of inflation and the potential for a slowdown in consumer spending. Jassy also noted that the company is facing increased competition in a number of areas, including advertising and cloud computing.
Despite these challenges, Amazon’s Q2 results were still a significant success. The company’s stock price rose by around 2% in after-hours trading, although this was well below the 5% gain that some analysts had been expecting.
In conclusion, Amazon’s Q2 earnings were a mixed bag. The company’s revenue and profit growth were strong, but its outlook for the coming quarter was somewhat muted. The company’s advertising revenue was a major highlight, with ad revenue reaching over $15 billion for the first time. This demonstrates the continued growth and dominance of Amazon’s advertising business, and highlights the company’s ability to attract and retain advertisers.
As Amazon looks to the future, it will be important for the company to continue to innovate and adapt to changing market conditions. The company’s success will depend on its ability to stay ahead of the competition and to continue to provide value to its customers. With its strong brand and vast resources, Amazon is well-positioned to continue to thrive in the years ahead.