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Consumer Discretionary · NASDAQ: AMZN

Amazon: how the business works

Amazon sells goods online, rents computing power through AWS and sells ads, with net sales of $716.9 billion in FY2025.

Amazon.com, Inc. · Seattle, Washington · Founded 1994

Last updated · Reviewed by Cityfort Research on

Net sales, FY2025
$716.9B
Operating income, FY2025
$80.0B
Net income, FY2025 (incl. Anthropic gains)
$77.7B
Employees, Dec 31, 2025
About 1,576,000
Jeff Bezos's stake, Feb 24, 2026 (proxy)
8.8%

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Cityfort's research and drafting tools include Claude, which is made by Anthropic, a company Amazon has invested in. This page's figures come from SEC filings by Amazon and its major holders, and Nasdaq price data.

01 · The business in one line

What does Amazon do?

Shoppers, sellers, advertisers and businesses renting cloud computing pay Amazon; most of the money goes on the goods it sells and on delivering them, and the AWS cloud earns most of the operating profit.

  • In FY2025, store sales and seller fees were 64.7% of net sales, AWS 18.0%, advertising 9.6% and subscriptions such as Prime 6.9%.
  • AWS brought in 18.0% of FY2025 net sales but 57.0% of operating income; the stores keep a few dollars per $100 of sales.

02 · What it sells

What does Amazon sell?

Amazon is several businesses under one name. It sells goods in its own online stores, lets other sellers use those stores for a fee, sells ads to brands, and rents computing power to organizations through AWS.

  • Online stores ($269.3B in FY2025)

    Products Amazon buys and resells itself, plus digital media, sold through its websites and apps.

  • Third-party seller services ($172.2B)

    Commissions and fulfillment and shipping fees paid by independent sellers who sell in Amazon's stores.

  • AWS ($128.7B)

    Amazon Web Services rents computing, storage, database and other services over the internet, worldwide.

  • Advertising ($68.6B)

    Brands and sellers pay to show ads to Amazon's shoppers and viewers.

  • Subscriptions ($49.6B)

    Prime membership fees and paid digital video, audiobook, music and e-book subscriptions.

  • Physical stores ($22.6B)

    Sales in Amazon's own shops: 615 in North America and 8 abroad at Dec 31, 2025.

What it does

  • Does: Sells goods it owns, and charges other sellers to use its stores and warehouses
  • Does: Rents servers, storage and databases to organizations through AWS
  • Does: Sells ads and subscriptions such as Prime
  • Does: Invests in AI companies, including Anthropic and OpenAI, which are also AWS customers

What it does not do

  • Does not: Does not count a third-party seller's full sale as its revenue: it records only its commissions and fees
  • Does not: Does not report Prime member or active customer numbers in its FY2025 10-K

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

03 · Who pays it

Who pays Amazon?

  • Shoppers (online stores)

    38%

    of revenue

    People buying goods Amazon sells itself, plus digital media.

  • Third-party sellers

    24%

    of revenue

    Independent sellers paying commissions and fulfillment and shipping fees.

  • AWS customers

    18%

    of revenue

    Organizations renting computing, storage and database services. In 2026 OpenAI expanded its commitment by $100 billion and Anthropic by over $100 billion.

  • Advertisers

    10%

    of revenue

    Brands and sellers paying for ads in Amazon's stores and other properties.

  • Subscribers

    7%

    of revenue

    Prime members and buyers of digital video, music, audiobook and e-book subscriptions.

  • Shoppers (physical stores)

    3%

    of revenue

    People buying in Amazon's own shops.

  • Other

    1%

    of revenue

    Shipping services, healthcare, video licensing and co-branded credit cards.

  • Shoppers (online stores)38%
  • Third-party sellers24%
  • AWS customers18%
  • Advertisers10%
  • Subscribers7%
  • Shoppers (physical stores)3%
  • Other1%

How spread out the customers are

Amazon's FY2025 10-K does not report sales to any single customer. Its AWS contract backlog now includes large commitments from two AI companies, Anthropic and OpenAI (see risks).

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-Q for the quarter ended 30 Jun 2026

04 · How the money flows · FY2025

How does money flow through Amazon?

Money in

  • Product sales$296.3B
  • Service sales (seller fees, AWS, ads, subscriptions)$420.7B
  • Interest income and other income (mainly Anthropic gains)$19.6B

The company

Amazon

$736.5B came in

Money out

  • Cost of sales (goods, shipping, content)$356.4B
  • Fulfillment (warehouses, customer service)$109.1B
  • Technology and infrastructure (incl. data centers)$108.5B
  • Marketing, admin and other operating costs$62.9B
  • Interest paid$2.3B
  • Income tax and equity-method losses$19.6B
  • Net income$77.7B
  1. Shoppers, sellers, advertisers, subscribers and AWS customers paid Amazon $716.9 billion in FY2025.
  2. About half went on the goods it sold, shipping and content: $356.4 billion.
  3. Warehouses, data centers and running costs took another $280.5 billion, including wear and tear on equipment.
  4. That left $80.0 billion of operating income; interest and other income, mainly Anthropic gains, added $19.6 billion.
  5. After interest and tax, $77.7 billion was left as net income.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

05 · Where the money goes · FY2025

Where does $100 of Amazon's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Amazon · FY2025

Receipt for every $100

Where $100 of Amazon's money went in FY2025
Goods, shipping and content (cost of sales)$48.4
Fulfillment$14.8
Technology and infrastructure$14.7
Marketing, admin and other$8.5
Interest$0.3
Tax and equity-method losses$2.7
Kept as net income$10.5
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

06 · What it needs to run

What does Amazon need to run?

  • Warehouses and offices

    741.5 million square feet leased and 78.1 million owned at Dec 31, 2025, mostly fulfillment, data center and related space.

  • Data centers and servers

    AWS property and equipment (net) was $190.1 billion at the end of FY2025, up from $43.2 billion at the end of FY2021.

  • People

    About 1,595,000 full- and part-time employees at Jun 30, 2026, not counting contractors and temporary staff.

  • Borrowed money

    Amazon has sold notes in US dollars, euros, Swiss francs, Canadian dollars and pounds since November 2025. Long-term debt (face value) rose from $68.8 billion to $133.0 billion in the first half of 2026.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-K for fiscal year 2023; Q2 2026 earnings release (Form 8-K, Exhibit 99.1) and 7 more

07 · Why it makes money

Why does Amazon make money?

The stores bring in most of the sales; AWS and advertising bring in much of the profit.

Store sales carry thin margins: North America kept $6.95 and International $2.93 of operating income per $100 of sales in FY2025. AWS kept $35.43 per $100. Amazon spreads shared costs across segments "based on usage", so segment figures are not standalone accounts.

Operating income per $100 of net sales

$5.3$11.2

FY2021 to FY2025

  1. Shoppers buy from Amazon and from other sellers in its stores
  2. Sellers pay commissions and fulfillment fees
  3. Brands pay to show ads to those shoppers
  4. AWS rents computing to organizations at higher margins
  5. Cash and borrowing pay for warehouses and data centers
  6. More capacity lets the stores and AWS sell more

↺ Step 6 feeds back into step 1.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-K for fiscal year 2023

08 · Business segments · FY2025

Which businesses make up Amazon?

  • North America

    60%

    Store sales, seller fees, ads and subscriptions through North America-focused stores.

    Revenue $426.3B · Operating profit $29.6B

  • International

    23%

    The same businesses through internationally focused stores.

    Revenue $161.9B · Operating profit $4.8B

  • AWS

    18%

    Computing, storage, database and other cloud services sold worldwide.

    Revenue $128.7B · Operating profit $45.6B

How the mix changed

  • North America
  • International
  • AWS

Revenue by segment, FY2021 to FY2025.

US$ · Source: Form 10-K for fiscal year 2023; Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

See the numbers
How the mix changed (US$)
YearNorth AmericaInternationalAWS
FY2021$279.8B$127.8B$62.2B
FY2022$315.9B$118.0B$80.1B
FY2023$352.8B$131.2B$90.8B
FY2024$387.5B$142.9B$107.6B
FY2025$426.3B$161.9B$128.7B

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

09 · Where it sells · FY2025

Where does Amazon sell?

  • United States68%
  • Germany6%
  • United Kingdom6%
  • Japan4%
  • Rest of world15%

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

10 · Competitors and what protects it

Who does Amazon compete with?

This page names no competitors yet, because none were checked against a filing for this version. The scores below rest on Amazon's own reported numbers.

What protects the business

Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.

  • Size of the delivery network4 of 5

    Amazon used 819.7 million square feet of leased and owned space at Dec 31, 2025, mostly fulfillment, data center and related space, and spent $109.1 billion on fulfillment in FY2025.

  • AWS scale and contracts4 of 5

    AWS had $128.7 billion of FY2025 sales and kept $35.43 of operating income per $100, and Amazon reported about $496 billion of commitments not yet recognized under contracts with original terms over one year, mostly AWS, at Jun 30, 2026.

  • Advertising reach4 of 5

    Advertising sales were $68.6 billion in FY2025, up from $31.2 billion in FY2021.

  • Cash from operations3 of 5

    Operating cash flow was $139.5 billion in FY2025, but purchases of property and equipment took $131.8 billion of it.

Weak spot

Thin store margins

International lost money in FY2021–FY2023 and kept $2.93 of operating income per $100 of sales in FY2025; North America kept $6.95.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-Q for the quarter ended 30 Jun 2026; Form 10-K for fiscal year 2023

11 · Where growth could come from

Where could Amazon's growth come from?

Amazon said on Jul 30, 2026 that it expected Q3 FY2026 net sales of $197.0–202.0 billion (9% to 12% growth over Q3 FY2025) and operating income of $22.5–26.5 billion, assuming no impact from energy derivative contract remeasurements.
Management statement, Jul 30, 2026. Reported as a statement, not our forecast.

  • AWS cloud

    Working

    +36.8% in Q2 FY2026

    AWS sales were $42.2 billion in Q2 FY2026, up from $30.9 billion a year earlier (37% excluding currency moves, as Amazon reports it).

    Status: Working, on track against what the company said.

  • Advertising

    Working

    $76.1B in 12 months to Jun 2026

    Ad sales grew 22.1% in FY2025 to $68.6 billion; Amazon reported 26% growth excluding currency moves in Q2 FY2026.

    Status: Working, on track against what the company said.

  • AI computing contracts

    Early

    ~$496B, all customers

    Commitments not yet recognized under contracts with original terms over one year, mostly AWS, rose from about $244 billion at Dec 31, 2025. They include OpenAI ($100 billion over 8 years) and Anthropic (over $100 billion over 10 years).

    Status: Early, too early to judge.

  • Globalstar acquisition

    New

    ~$10.9B incl. debt, at signing

    Amazon agreed on Apr 13, 2026 to buy Globalstar, Inc. for $90.00 in cash or 0.3210 Amazon shares per share. Amazon expects it to close in 2027, subject to approvals and satellite milestones.

    Status: New, recently announced.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Source: Q2 2026 earnings release (Form 8-K, Exhibit 99.1); Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-Q for the quarter ended 30 Jun 2026

12 · The numbers · Consolidated · US$

How has Amazon done?

Revenue

$716.9BFY2025

Net sales rose every year, from $469.8 billion in FY2021 to $716.9 billion in FY2025.

US$ · Source: Form 10-K for fiscal year 2023; Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Q3 2025 earnings release (Form 8-K, Exhibit 99.1) and 3 more

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2021$469.8B
FY2022$514.0B
FY2023$574.8B
FY2024$638.0B
FY2025$716.9B
Q3 FY2024$158.9B
Q4 FY2024$187.8B
Q1 FY2025$155.7B
Q2 FY2025$167.7B
Q3 FY2025$180.2B
Q4 FY2025$213.4B
Q1 FY2026$181.5B
Q2 FY2026$200.6B

Net profit

$77.7BFY2025

Operating income rose from $24.9 billion in FY2021 to $80.0 billion in FY2025; net income in FY2025 and 2026 includes gains on the Anthropic investment.

US$ · Source: Form 10-K for fiscal year 2023; Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2021$33.4B$3.24
FY2022−$2.7B−$0.27
FY2023$30.4B$2.90
FY2024$59.2B$5.53
FY2025$77.7B$7.17
Q3 FY2024$15.3B$1.43
Q4 FY2024$20.0B$1.86
Q1 FY2025$17.1B$1.59
Q2 FY2025$18.2B$1.68
Q3 FY2025$21.2B$1.95
Q4 FY2025$21.2B$1.95
Q1 FY2026$30.3B$2.78
Q2 FY2026$62.6B$5.75

Profit kept per $100 of revenue

$10.8FY2025

Net income per $100 of sales was $10.83 in FY2025, while operating income per $100 was $11.16 (FY2022: $2.38 operating, a net loss).

$ of profit per $100 of revenue (net margin) · Source: Form 10-K for fiscal year 2023; Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY20217.1%12.6%
FY2022−0.5%10.5%
FY20235.3%14.9%
FY20249.3%19.0%
FY202510.8%20.3%

Free cash flow

$7.7BFY2025

Cash from operations minus gross purchases of property and equipment fell from $32.9 billion in FY2024 to $7.7 billion in FY2025.

US$ · cash from operations minus spending on plants and equipment · Source: Form 10-K for fiscal year 2023; Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements)

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2021$46.3B$61.1B−$14.7B
FY2022$46.8B$63.6B−$16.9B
FY2023$84.9B$52.7B$32.2B
FY2024$115.9B$83.0B$32.9B
FY2025$139.5B$131.8B$7.7B
See all yearly numbers
Amazon annual financials, FY2021–FY2025, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2021$469.8B$59.3B$33.4B$3.24$46.3B$61.1B−$14.7B
FY2022$514.0B$54.2B−$2.7B−$0.27$46.8B$63.6B−$16.9B
FY2023$574.8B$85.5B$30.4B$2.90$84.9B$52.7B$32.2B
FY2024$638.0B$121.4B$59.2B$5.53$115.9B$83.0B$32.9B
FY2025$716.9B$145.7B$77.7B$7.17$139.5B$131.8B$7.7B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Dec 31; Amazon's fiscal year is the calendar year, so Q2 FY2026 is April–June 2026). Net profit is the share belonging to the company's owners.

13 · The company's own measures · FY2025 and the 12 months to Jun 30, 2026

What do Amazon's own measures show?

Adjusted (non-GAAP) figures are Amazon's own measures, shown next to the official (GAAP) number. They are never added together.

  • Official (GAAP): Net cash from operating activities, FY2025

    $139.5B

    Company's own measure: Free cash flow, FY2025 (Amazon's definition)

    $11.2B

    Amazon subtracts purchases of property and equipment net of proceeds from sales and incentives. The free cash flow in "The numbers" subtracts gross purchases instead ($7.7 billion).

  • Official (GAAP): Net cash from operating activities, 12 months to Jun 30, 2026

    $161.4B

    Company's own measure: Free cash flow, 12 months to Jun 30, 2026 (Amazon's definition)

    −$7.6B

    Same definition as above: net purchases of property and equipment were $169.0 billion in those 12 months.

  • Official (GAAP): Reported net sales growth, Q2 FY2026 (Cityfort calculation)

    19.6%

    Company's own measure: Net sales growth excluding currency moves, Q2 FY2026

    20.0%

    Amazon removes the effect of exchange-rate changes on sales outside the US.

  • Official (GAAP): Reported AWS sales growth, Q2 FY2026 (Cityfort calculation)

    36.8%

    Company's own measure: AWS growth excluding currency moves, Q2 FY2026

    37.0%

    Amazon removes the effect of exchange-rate changes.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Q2 2026 earnings release (Form 8-K, Exhibit 99.1)

14 · Financial strength · Jun 30, 2026

How much debt does Amazon have?

At Jun 30, 2026 Amazon's debt exceeded its cash and marketable securities by $10.0 billion; six months earlier cash exceeded debt by $54.2 billion.
  • Total debt$133.0B
  • Cash and investments$123.0B
  • Net debt (debt minus cash)$10.0B
  • Net worth (shareholders' money)$551.6B
Debt to equity
0.24×
$ of debt for every $1 of shareholders' money
  • Debt is the face value of long-term notes, including the part due within a year ($68.8 billion at Dec 31, 2025; $133.0 billion at Jun 30, 2026). Net figures are Cityfort's calculation.
  • Lease obligations are separate and not counted as debt here: $101.5 billion at Dec 31, 2025 (operating plus finance leases).
  • After Jun 30, 2026 Amazon sold $25.0 billion of US dollar notes (July) and £4.25 billion of sterling notes (September). A $17.5 billion term loan signed in June was undrawn at Jun 30.
  • Shareholders' equity rose from $411.1 billion to $551.6 billion in the first half of 2026, largely from upward revaluations of the Anthropic investment. Accumulated other comprehensive income, mostly unrealized gains on Anthropic notes, was $66.3 billion at Jun 30, 2026.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-Q for the quarter ended 30 Jun 2026; Q2 2026 earnings release (Form 8-K, Exhibit 99.1) and 3 more

15 · Who owns it · ownership as of Feb 24, 2026

Who owns Amazon?

Amazon has one class of common stock, one vote per share. The proxy's ownership table is as of Feb 24, 2026; 17 directors and executive officers held 8.9%.
Officers and directors (as a group), shares
8.9%
Share classes
Amazon share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Common stock (Shares outstanding on Jul 22, 2026 (10-Q cover).)10,786.31–––Yes
Holders of 5% or more
Amazon holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
Jeffrey P. Bezos (founder, Executive Chair)8.8%–Feb 24, 2026S11, S15Proxy, Feb 24, 2026: 950,434,581 shares, including 68,232,131 over which he has sole voting power but no investment power. His Form 4 after gifts on Aug 25–26, 2026 shows 879,323,424 shares held directly.
The Vanguard Group7.2%–Feb 24, 2026S11, S14Proxy figure, based on a Schedule 13G with Dec 31, 2023 data. In March 2026 The Vanguard Group reported 0% after an internal realignment.
Vanguard Capital Management LLC6.8%–Feb 24, 2026S13Schedule 13G, holding as of Mar 31, 2026 (727,679,638 shares). Not in the proxy table.
BlackRock, Inc.5.9%–Feb 24, 2026S11Proxy figure, based on a Schedule 13G with Dec 31, 2023 data.

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Source: Form 10-Q for the quarter ended 30 Jun 2026; 2026 Proxy Statement (DEF 14A): security ownership and executive compensation; Form 4 filed by Jeffrey P. Bezos (gifts on 25 and 26 Aug 2026) and 2 more

16 · What it does with profit

What does Amazon do with its profit?

Amazon bought back no shares in 2023, 2024, 2025 or the first half of 2026; $6.1 billion of a $10.0 billion authorization from March 2022 was unused at Jun 30, 2026. Stock-based pay totaled $97.9 billion over FY2021–FY2025.

  • Money raised · Nov 20, 2025

    Closed a $15.0 billion senior notes offering.

    $15.0B

  • Money raised · Mar 13, 2026

    Closed a $37.0 billion senior notes offering.

    $37.0B

  • Money raised · Mar 16, 2026

    Closed a €14.5 billion notes offering (euro amount; not converted here).

  • Money raised · Jun 8, 2026

    Signed a $17.5 billion delayed-draw term loan; undrawn at Jun 30, 2026.

    $17.5B

  • Money raised · Jun 12, 2026

    Closed a C$14.0 billion notes offering (Canadian-dollar amount; not converted here).

  • Money raised · Jul 9, 2026

    Closed a $25.0 billion senior notes offering.

    $25.0B

  • Money raised · Sep 14, 2026

    Closed a £4.25 billion notes offering (sterling amount; not converted here).

Source: Form 8-K: closing of $15.0bn senior notes offering; Form 8-K: closing of $37.0bn senior notes offering; Form 8-K: closing of EUR 14.5bn notes offering and 5 more

17 · Who runs it

Who runs Amazon, and did they deliver?

  • Jeffrey P. Bezos

    Founder and Executive Chair · since 2021

    Executive Chair since July 2021, when he handed the CEO role to Andy Jassy.

  • Andrew R. Jassy

    President and Chief Executive Officer · since 2021

    2025 total pay $2.07 million; no new stock award since his 2021 promotion grant.

  • Matthew S. Garman

    CEO, Amazon Web Services · since 2024

  • Douglas J. Herrington

    CEO, Worldwide Amazon Stores · since 2022

  • Brian T. Olsavsky

    Senior Vice President and Chief Financial Officer · since 2015

  • Kevin R. Mandia

    Director · since 2026

    Elected Sep 8, 2026; sits on the Audit and Security committees.

What they said, and what happened

2 too early to tell · 2 delivered

  1. Said on Feb 5, 2026

    CEO Andy Jassy said Amazon expected to invest about $200 billion in capital expenditures across Amazon in 2026.

    What happened

    Gross purchases of property and equipment were $98.4 billion in the first half of 2026. The Q1 and Q2 FY2026 releases give no updated full-year figure.

    Too early to tell

  2. Said on Feb 5, 2026

    Amazon guided Q1 FY2026 net sales of $173.5–178.5 billion and operating income of $16.5–21.5 billion.

    What happened

    Reported net sales of $181.5 billion and operating income of $23.9 billion, both above the range.

    Delivered

  3. Said on Apr 29, 2026

    Amazon guided Q2 FY2026 net sales of $194.0–199.0 billion and operating income of $20.0–24.0 billion.

    What happened

    Reported net sales of $200.6 billion and operating income of $27.5 billion, both above the range.

    Delivered

  4. Said on Jul 30, 2026

    Amazon guided Q3 FY2026 net sales of $197.0–202.0 billion and operating income of $22.5–26.5 billion.

    What happened

    Results are due on Oct 29, 2026.

    Too early to tell

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); 2026 Proxy Statement (DEF 14A): security ownership and executive compensation; Form 8-K (Item 5.02): election of Kevin R. Mandia as a director and 3 more

18 · Governance signals

What do Amazon's governance filings show?

Auditor
Ernst & Young LLP, since 1996
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
This version of the page does not summarize the related-person transactions section of the 2026 proxy. Anthropic and OpenAI are investments, not consolidated: Amazon's maximum exposure to loss is generally limited to their carrying values plus future funding commitments.
Credit rating
No public credit rating found

Flags to know about

  • regulatory

    FTC lawsuit settlement

    Amazon recorded a $2.5 billion charge in Q3 FY2025 for settling a lawsuit brought by the US Federal Trade Commission (FTC).

  • regulatory

    Antitrust lawsuits

    Amazon's FY2025 10-K lists antitrust lawsuits filed since March 2020 by private plaintiffs, state attorneys general and the FTC.

  • regulatory

    European fines under appeal

    Luxembourg's data regulator (CNPD) issued a 2021 decision claiming Amazon's processing of personal data did not comply with the GDPR, with a €746 million fine; a court dismissed Amazon's appeal in March 2025 and Amazon appealed again in April 2025. The Italian Competition Authority's 2021 decision claimed certain marketplace and logistics practices infringed EU competition rules and imposed a €1.13 billion fine, which Amazon paid; in September 2025 an Italian administrative court affirmed the decision but reduced the fine to €752 million, and Amazon appealed in December 2025.

  • other

    Founder's pre-arranged share sale plan

    Jeff Bezos adopted a Rule 10b5-1 trading plan on Nov 14, 2025 to sell up to 15,000,000 Amazon shares through Feb 26, 2027.

  • disclosure

    Customer numbers not reported

    Amazon's FY2025 10-K does not report Prime member or active customer counts, and gives segment capital spending only as asset additions, not cash.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-Q for the quarter ended 30 Jun 2026; 2026 Proxy Statement (DEF 14A): security ownership and executive compensation and 1 more

19 · What the market paid · price as of Oct 23, 2026

What did the market pay for Amazon on Oct 23, 2026?

Price as of Oct 23, 2026 (shown for education; prices change daily).

Price as of Oct 23, 2026: Amazon closed at $248.00 on Nasdaq. Times 10,786.3 million shares (Jul 22, 2026) that is a market value of about $2,675.0 billion. P/E is price ÷ earnings per share: 19.9 on diluted EPS of $12.44 for the 12 months to Jun 30, 2026, which includes large Anthropic investment gains.

Share price
$248.00
Market value (market cap)
$2.68T
P/E
19.9×

Source: AMZN historical daily prices, October 2026 (close of 23 Oct 2026); Form 10-Q for the quarter ended 30 Jun 2026; Q2 2026 earnings release (Form 8-K, Exhibit 99.1)

20 · What could go wrong

What could go wrong for Amazon?

  • Debt

    Spending on AI capacity is outrunning cash flow

    Gross purchases of property and equipment were $98.4 billion in the first half of 2026, mostly for AWS. Cash from operations was $161.4 billion and gross purchases of property and equipment $173.0 billion in the 12 months to Jun 30, 2026. Amazon has borrowed in five currencies since November 2025.

    Watch Capital spending, free cash flow and new notes in each quarterly release.

  • Other

    Net income depends on Anthropic revaluations

    Other income, mainly from Anthropic, was 66% of Q2 FY2026 pre-tax income (Cityfort calculation). These are non-cash gains. The notes are valued with estimates, not market prices, and the preferred shares are adjusted when an observable price change occurs.

    Watch "Other income (expense), net" and the Anthropic carrying values in each 10-Q.

  • Concentration

    Two AI companies Amazon invests in expanded AWS commitments by over $200 billion

    OpenAI ($100 billion over 8 years) and Anthropic (over $100 billion over 10 years) expanded their AWS commitments in 2026. Amazon also invests in both: $28.7 billion in OpenAI by Jun 30, 2026.

    Watch Changes in remaining performance obligations and the 10-Q notes on these two contracts.

  • Legal

    Lawsuits and regulators

    Amazon faces antitrust suits from the FTC, state attorneys general and private plaintiffs filed since March 2020, and European fines under appeal. It booked $2.5 billion for an FTC settlement in 2025.

    Watch Legal proceedings note in each 10-K and 10-Q.

  • Execution

    Thin margins in the store segments

    International lost money from FY2021 to FY2023 and kept $2.93 of operating income per $100 of sales in FY2025. North America lost money in FY2022.

    Watch North America and International operating margins each quarter.

  • Other

    Share dilution from stock pay

    Stock-based pay totaled $97.9 billion over FY2021–FY2025. Diluted shares rose 5.2% from FY2021 to FY2025, and Amazon has bought back no shares since 2022.

    Watch Diluted share count and stock-based compensation in each release.

  • Currency

    Currency moves

    31.7% of FY2025 net sales came from outside the US. Amazon's Q3 FY2026 guidance assumed a currency headwind of about 0.8 percentage points.

    Watch Growth "excluding F/X" versus reported growth in each release.

Source: Form 10-Q for the quarter ended 30 Jun 2026; Q2 2026 earnings release (Form 8-K, Exhibit 99.1); Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements) and 2 more

21 · How it got here

How did Amazon get here?

  1. 2021

    Milestone

    New CEO

    Andy Jassy became CEO in July 2021; founder Jeff Bezos became Executive Chair.

  2. 2022

    Crisis

    Net loss on Rivian shares

    Amazon had a net loss of $2.7 billion in FY2022 after a $12.7 billion loss on its Rivian stake; operating income was $12.2 billion.

  3. 2022

    Milestone

    20-for-1 stock split

    Each share became 20 on May 27, 2022; all share figures on this page are after the split.

  4. 2023

    Business-model change

    First Anthropic investment

    Amazon began buying Anthropic convertible notes in Q3 2023; it invested $8.0 billion in notes through Q4 2025.

  5. 2025

    Crisis

    FTC settlement and job cuts

    FY2025 operating income absorbed a $2.5 billion FTC settlement and about $2.7 billion of severance costs.

  6. 2026

    Business-model change

    OpenAI investment and AI contracts

    Amazon agreed in February 2026 to invest in OpenAI, and had invested $28.7 billion by Jun 30. OpenAI expanded AWS commitments by $100 billion, Anthropic by over $100 billion.

  7. 2026

    Business-model change

    Borrowing to build

    Amazon sold $37.0 billion of dollar notes and €14.5 billion of euro notes in March 2026, then more in May, June, July and September.

  8. 2026

    Milestone

    Globalstar deal

    Amazon agreed on Apr 13, 2026 to buy Globalstar, Inc.; it expects the deal to close in 2027.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Form 10-K for fiscal year 2023; Form 10-Q for the quarter ended 30 Jun 2026 and 7 more

22 · Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • AWS sales grew 36.8% to $42.2 billion in Q2 FY2026, with $39.36 of operating income per $100.
  • Commitments not yet recognized under contracts with original terms over one year, mostly AWS, rose from about $244 billion to about $496 billion in the first half of 2026.
  • Operating income rose from $24.9 billion in FY2021 to $80.0 billion in FY2025.
  • Advertising sales reached $68.6 billion in FY2025, up 22.1% on FY2024.
  • Net sales came in above Amazon's own guided range in each of the four quarters from Q3 FY2025 to Q2 FY2026.

What critics point to

  • Cash from operations was $161.4 billion and gross purchases of property and equipment $173.0 billion in the 12 months to Jun 30, 2026.
  • Net cash of $54.2 billion at Dec 31, 2025 became net debt of $10.0 billion by Jun 30, 2026, and more notes followed.
  • Other income, mainly from Anthropic, was 66% of Q2 FY2026 pre-tax income; these gains are non-cash.
  • Over $200 billion of new AWS commitments come from OpenAI and Anthropic, companies Amazon also invests in.
  • Stock-based pay totaled $97.9 billion over FY2021–FY2025, with no buybacks since 2022.

23 · What to watch next

What should you watch next at Amazon?

Next event

Q3 FY2026 results

Oct 29, 2026

Date confirmed by the company

  • Capital spending against the $200 billion statement

    Gross purchases were $98.4 billion in the first half of 2026; the Q3 release shows nine months.

  • Anthropic and OpenAI values in the Q3 10-Q

    Changes in these carrying values move net income and equity, separately from operating income.

  • Debt and free cash flow

    Amazon added $25.0 billion and £4.25 billion of notes after Jun 30, 2026; watch net cash and free cash flow.

24 · Key facts

Key facts about Amazon

What does Amazon do?
Amazon runs online and physical stores, charges other sellers to sell and ship through its stores, sells advertising and subscriptions such as Prime, and rents computing, storage and database services through Amazon Web Services (AWS). Amazon's net sales were $716.9 billion in FY2025 (calendar 2025).
How does Amazon make money?
In FY2025 Amazon's net sales came from online stores (37.6%), third-party seller services (24.0%), AWS (18.0%), advertising (9.6%), subscriptions (6.9%), physical stores (3.1%) and other (0.8%).
Where does Amazon's operating profit come from?
AWS earned $45.6 billion of Amazon's $80.0 billion operating income in FY2025 (57.0%), on 18.0% of net sales. North America earned $29.6 billion and International $4.8 billion.
How big is Amazon?
Amazon had net sales of $716.9 billion, operating income of $80.0 billion and net income of $77.7 billion in FY2025, and about 1,576,000 full- and part-time employees on Dec 31, 2025.
Why did Amazon's net income jump in Q2 FY2026?
Amazon's net income was $62.6 billion in Q2 FY2026 (April to June 2026), against operating income of $27.5 billion. The difference came mostly from $53.4 billion of other income, which Amazon said was primarily from its investments in Anthropic.
Who owns Amazon?
Amazon's 2026 proxy statement lists founder and Executive Chair Jeff Bezos with 8.8% of the shares as of Feb 24, 2026, and all directors and executive officers together with 8.9%.
How much does Amazon spend on buildings and equipment?
Amazon's purchases of property and equipment were $131.8 billion in FY2025, up from $83.0 billion in FY2024, and $98.4 billion in the first half of 2026.
Does Amazon have more debt than cash?
On Jun 30, 2026 Amazon owed $133.0 billion of long-term debt (face value) and held $123.0 billion of cash and marketable securities, so debt exceeded cash by $10.0 billion. On Dec 31, 2025 cash had exceeded debt by $54.2 billion.

Source: Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements); Q2 2026 earnings release (Form 8-K, Exhibit 99.1); 2026 Proxy Statement (DEF 14A): security ownership and executive compensation and 1 more

25 · Sources and changes

Where every number on this page comes from

Sources (22 documents)
  1. S1Form 10-K for fiscal year 2025 (incl. audited consolidated financial statements) · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 6, 2026
  2. S2Form 10-K for fiscal year 2023 · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 2, 2024
  3. S3Form 10-Q for the quarter ended 30 Jun 2026 · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 31, 2026
  4. S5Form 10-Q for the quarter ended 30 Sep 2025 · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 31, 2025
  5. S6Q2 2026 earnings release (Form 8-K, Exhibit 99.1) · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 30, 2026
  6. S7Q1 2026 earnings release (Form 8-K, Exhibit 99.1) · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2026
  7. S8Q4 2025 earnings release (Form 8-K, Exhibit 99.1) · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 5, 2026
  8. S9Q3 2025 earnings release (Form 8-K, Exhibit 99.1) · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2025
  9. S112026 Proxy Statement (DEF 14A): security ownership and executive compensation · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 9, 2026
  10. S13Schedule 13G filed by Vanguard Capital Management LLC (event date 31 Mar 2026) · SEC EDGAR · Tier 1: company or exchange filing · Apr 29, 2026
  11. S14Schedule 13G/A filed by The Vanguard Group (event date 13 Mar 2026; 0% after internal realignment) · SEC EDGAR · Tier 1: company or exchange filing · Mar 26, 2026
  12. S15Form 4 filed by Jeffrey P. Bezos (gifts on 25 and 26 Aug 2026) · SEC EDGAR · Tier 1: company or exchange filing · Aug 27, 2026
  13. S16Form 8-K (Items 1.01, 7.01, 8.01): OpenAI equity commitment letter, with partnership press release (Ex. 99.1) · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 27, 2026
  14. S17Form 8-K: closing of $15.0bn senior notes offering · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 20, 2025
  15. S18Form 8-K: closing of $37.0bn senior notes offering · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 13, 2026
  16. S19Form 8-K: closing of EUR 14.5bn notes offering · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 16, 2026
  17. S20Form 8-K (Items 1.01, 2.03): $17.5bn delayed draw term loan agreement · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 10, 2026
  18. S21Form 8-K: closing of CAD 14.0bn notes offering · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 12, 2026
  19. S22Form 8-K: closing of $25.0bn senior notes offering · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 9, 2026
  20. S23Form 8-K: closing of GBP 4.25bn notes offering · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 14, 2026
  21. S24Form 8-K (Item 5.02): election of Kevin R. Mandia as a director · Amazon.com, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 9, 2026
  22. S26AMZN historical daily prices, October 2026 (close of 23 Oct 2026) · Nasdaq, Inc. · Tier 2: rating agency or regulator · Oct 23, 2026
Changes to this page (v1 · Oct 27, 2026)
  1. v1 · Oct 27, 2026First version, through Q2 FY2026 (quarter ended Jun 30, 2026). (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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