Q3 23 EPS

$0.94

BEAT +70.91%

Est. $0.55

Q3 23 Revenue

$143.08B

BEAT +7.26%

Est. $133.39B

vs S&P Since Q3 23

+37.5%

BEATING MARKET

AMZN +113.0% vs S&P +75.5%

Market Reaction

Did AMZN Beat Earnings? Q3 2023 Results

Amazon delivered a blowout third quarter, posting earnings of $0.94 per diluted share against a consensus estimate of $0.55, a beat of 70.91%, while revenue of $143.08 billion topped expectations of $133.39 billion by 7.26% and grew 12.6% year over y… Read more Amazon delivered a blowout third quarter, posting earnings of $0.94 per diluted share against a consensus estimate of $0.55, a beat of 70.91%, while revenue of $143.08 billion topped expectations of $133.39 billion by 7.26% and grew 12.6% year over year. The most compelling driver behind the results was a dramatic margin expansion across all segments, led by the North America segment swinging to $4.31 billion in operating income from an operating loss of $412 million a year ago, as Amazon's regionalized fulfillment network delivered faster shipping at lower cost. AWS contributed $6.98 billion in operating income at a 30.3% margin, while advertising services grew 26% to $12.06 billion, underscoring the breadth of the recovery. Free cash flow swung to a positive $21.43 billion from negative $19.69 billion a year earlier. Looking ahead, Amazon guided Q4 revenue of $160 billion to $167 billion and operating income of $7 billion to $11 billion, compared to $2.7 billion in the prior-year period, signaling continued operational momentum heading into the holiday season.

Key Takeaways

  • Fulfillment network regionalization from single national network to eight distinct regions reducing cost to serve and improving delivery speeds
  • Advertising services revenue grew 26% YoY to $12.1 billion
  • AWS growth stabilization at 12% YoY with operating margin expanding to 30.3%
  • Third-party seller services grew 20% YoY reflecting strong marketplace activity
  • Operating margin expanded to 7.8% from 2.0% a year ago
  • North America segment swung to $4.3 billion operating income from $0.4 billion loss
  • International segment operating loss narrowed to $95 million from $2.5 billion loss
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AMZN YoY Financials

Q3 2023 vs Q3 2022, source: SEC Filings

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AMZN Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26
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AMZN Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward, our AWS growth continued to stabilize, our Advertising revenue grew robustly, and overall operating income and free cash flow rose significantly.”

— Andy Jassy, Q3 2023 Earnings Press Release