Amazon.com, Inc. stock research
FY2025 Q3
Amazon.com (AMZN) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased and gross profit rose, while cost of revenue also grew. Gross margin weakened compared to the prior quarter but improved relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased and gross profit rose, while cost of revenue also grew. Gross margin weakened compared to the prior quarter but improved relative to the same quarter one year earlier.
- The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue grew faster than revenue from the prior quarter, which compressed the gross margin. From the year-ago quarter, cost of revenue increased at a slower pace relative to revenue, supporting margin expansion.
- Compared with the immediately preceding quarter, gross margin weakened. Compared with the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.8%
Gross profit
$91.5B
Revenue
$180.2B
Cost of revenue
$88.7B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $180.2B | $91.5B | $88.7B | 50.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.0 pts
Year-over-year change
Sep 30, 2024
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue grew faster than revenue from the prior quarter, which compressed the gross margin. From the year-ago quarter, cost of revenue increased at a slower pace relative to revenue, supporting margin expansion.
Compared with the immediately preceding quarter, gross margin weakened. Compared with the same quarter one year earlier, gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as its growth rate compared to revenue directly influences gross margin direction.