Apple beats estimates: iPhone OK. Amazon good, but outlook weak
The accounts of the house of the bitten apple exceeded expectations with revenues of USD 94.04 billion. Jeff Bezos' company also exceeds estimates, but guidance disappoints
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Key points
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Two down, two to go. After Meta and Microsoft's above-expectation results, it was the turn of two more US-made technology biggies: Amazon and Apple. For the giant founded by Jeff Bezos, it was the second quarter of the year; for the Apple company, it was the third quarter numbers for the 2024-2025 fiscal year.
The e-commerce giant
.With regard to Amazon, the company reported better-than-expected results. However, the stock fell in after-hours trading due to third-quarter operating income guidance that, at the midpoint of the range, fell short of consensus estimates. Specifically, the Seattle-based giant reported that revenue rose 13.3% year-on-year to $167.7 billion, compared to $162.5 billion expected by analysts. In North America, revenues grew 11% to $100.1 billion, while internationally, the increase was 16% to $36.8 billion.
The cloud segment continues to drive: Amazon Web Services (Aws) reported revenues of USD 30.9 billion, up 17.5% and just above expectations (USD 30.8 billion). Online sales also exceeded expectations at 61.5 billion against an estimated 59.3 billion, while revenues from third-party vendor services grew by 11% to 40.4 billion.
Operating income rose to USD 19.2 billion, up 31% year-on-year, well above the consensus of USD 16.9 billion and company guidance of USD 13.0 billion to USD 17.5 billion. At the segment level, North America generated 7.5 billion in revenue while the international business generated 1.5 billion. Aws contributed 9.3 billion. Free cash flow, however, decreased from USD 53 billion (on a 12-month basis) a year ago to USD 18.2 billion today.
CEO Andy Jassy emphasised the growing role of artificial intelligence in customer experience and operational efficiency: 'Our belief that Ai will transform every customer experience is coming true,' he said. Among the new features: Alexa+, the Ai shopping agent, the DeepFleet system to optimise robots in the warehouse, and new developer tools such as Kiro, Strands and Bedrock AgentCore. Jassy added that AI advances are improving innovation, operational efficiency, and growth of the entire business.
