Amazon.com, Inc. stock research
FY2025 Q2
Amazon.com (AMZN) Gross Margin — Quarter Ended Jun 30, 2025
This quarter's gross margin improved as revenue grew faster than cost of revenue, with both revenue and gross profit higher than the prior quarter and the same quarter last year. The filing notes that operating cash flows increased compared to the prior year period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
This quarter's gross margin improved as revenue grew faster than cost of revenue, with both revenue and gross profit higher than the prior quarter and the same quarter last year. The filing notes that operating cash flows increased compared to the prior year period.
- The relationship among revenue, gross profit, and cost of revenue shows that gross profit increased at a rate greater than the increase in cost of revenue, leading to a higher gross margin. Revenue growth contributed to the expansion in gross profit, while cost of revenue grew at a slower pace.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and cost of revenue was also higher but at a lower rate, resulting in an improved gross margin. Similarly, compared to the same quarter one year earlier, all metrics were higher, with gross margin showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.8%
Gross profit
$86.9B
Revenue
$167.7B
Cost of revenue
$80.8B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $167.7B | $86.9B | $80.8B | 51.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.3 pts
Year-over-year change
Jun 30, 2024
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, gross profit, and cost of revenue shows that gross profit increased at a rate greater than the increase in cost of revenue, leading to a higher gross margin. Revenue growth contributed to the expansion in gross profit, while cost of revenue grew at a slower pace.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and cost of revenue was also higher but at a lower rate, resulting in an improved gross margin. Similarly, compared to the same quarter one year earlier, all metrics were higher, with gross margin showing improvement.
Monitor the future trend of cost of revenue relative to revenue to assess whether the current margin improvement can be sustained.