Amazon.com, Inc. stock research
FY2025 Q1
Amazon.com (AMZN) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to a year earlier, while gross profit also rose, supported by a higher gross margin. Relative to the immediately preceding quarter, revenue decreased, gross profit was lower, and cost of revenue declined, with gross margin improving.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to a year earlier, while gross profit also rose, supported by a higher gross margin. Relative to the immediately preceding quarter, revenue decreased, gross profit was lower, and cost of revenue declined, with gross margin improving.
- The strongest observable margin driver is the improvement in gross margin versus both the prior quarter and the year-ago quarter, as gross profit declined less proportionally than revenue when compared sequentially.
- Sequentially, revenue was lower and gross profit decreased, but cost of revenue fell at a greater rate, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were both higher, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.6%
Gross profit
$78.7B
Revenue
$155.7B
Cost of revenue
$77.0B
Quarter-over-quarter change
+3.2 pts
Year-over-year change
+1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $148.0B | $74.2B | $73.8B | 50.1% |
| Sep 30, 2024 | $158.9B | $77.9B | $81.0B | 49.0% |
| Dec 31, 2024 | $187.8B | $88.9B | $98.9B | 47.3% |
| Mar 31, 2025 | $155.7B | $78.7B | $77.0B | 50.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+3.2 pts
Year-over-year change
Mar 31, 2024
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin versus both the prior quarter and the year-ago quarter, as gross profit declined less proportionally than revenue when compared sequentially.
Sequentially, revenue was lower and gross profit decreased, but cost of revenue fell at a greater rate, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were both higher, and gross margin strengthened.
Monitor the trend in cost of revenue relative to revenue, as its decline was the primary factor behind the sequential gross margin improvement.