Amazon reported impressive first-quarter earnings on Thursday, driven by resilient consumer demand, growth in cloud services, and a rebound in advertising revenue. However, executives warned that rising geopolitical tensions and tariff-related uncertainties could weigh on the company’s outlook for the rest of the year.

Earnings Beat Wall Street Expectations

For the quarter ending March 31, Amazon posted a net income of $10.2 billion, up from $6.7 billion in the same period last year—a 52% increase. Revenue rose 13% year-over-year to $151.4 billion, exceeding analysts’ expectations of $149 billion.

Earnings per share came in at $1.96, well ahead of the consensus forecast of $1.58, signaling continued strength in Amazon’s core operations despite economic headwinds.

Andy Jassy, Amazon’s CEO, credited the company’s performance to “sustained improvements in logistics efficiency, cost discipline across divisions, and continued growth in high-margin segments such as AWS and advertising.”

AWS and Advertising Drive Growth

Amazon Web Services (AWS), the company’s cloud computing arm, remains a key growth engine. AWS revenue grew 15% year-over-year to $25.7 billion, marking a solid rebound from slower growth seen in previous quarters due to cautious enterprise spending.

Amazon’s advertising business also delivered strong results, with revenue jumping 22% to $12.4 billion. This growth reflects a broader rebound in digital ad spending and improved monetization on the company’s retail platforms.

“In a competitive ad landscape, Amazon continues to offer strong ROI to brands targeting high-intent shoppers,” said Julie Neumann, a retail analyst at Forrester Research.

Retail Segment Stabilizing

The North American retail segment saw a 9% increase in revenue to $87.9 billion, as consumers showed resilience despite persistent inflation. International sales also improved, rising 11% to $30.5 billion. Amazon noted progress in improving delivery speed and cost-efficiency, thanks to its ongoing regional fulfillment strategy.

Cautious Outlook Amid Trade Tensions

Despite the upbeat financials, Amazon struck a cautious tone when discussing the remainder of 2025. The company cited growing uncertainty over potential tariffs as a key risk, especially if trade tensions between the U.S. and China escalate further.

“While we’re confident in our operations and long-term strategy, we are closely monitoring policy developments related to international trade,” said CFO Brian Olsavsky during the earnings call. “Any new tariffs could impact input costs, supply chains, and pricing dynamics.”

Amazon did not provide formal revenue guidance for the full year, instead opting to highlight a “range of scenarios” depending on external developments.

Investor Reaction and Market Impact

Shares of Amazon initially rose in after-hours trading following the earnings release, but gains moderated after the company emphasized the potential impact of tariffs. As of market close Friday, Amazon stock was up 1.8% on the day.

Market analysts remain cautiously optimistic. “Amazon has proved its ability to adapt in complex environments,” said Dan Ives, managing director at Wedbush Securities. “But tariff uncertainty could be a real overhang, particularly for consumer electronics and imported goods.”

Looking Ahead

Amazon plans to continue investing in artificial intelligence, particularly in AWS and its Alexa platform, while expanding its presence in healthcare and logistics. The company also reaffirmed its commitment to sustainability goals, including achieving net-zero carbon emissions by 2040.

Despite looming geopolitical uncertainties, Amazon’s strong Q1 results reaffirm its position as one of the most adaptable and dominant players in the global tech and retail landscape.