Amazon.com, Inc. stock research
FY2025 Q4
Amazon.com (AMZN) Gross Margin — Quarter Ended Dec 31, 2025
Revenue, gross profit, and cost of revenue all increased from the prior quarter and the same quarter last year. Gross margin weakened compared to the immediately preceding quarter but improved relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue, gross profit, and cost of revenue all increased from the prior quarter and the same quarter last year. Gross margin weakened compared to the immediately preceding quarter but improved relative to the same quarter one year earlier.
- The year-over-year improvement in gross margin corresponded to revenue growing at a faster rate than cost of revenue. Sequentially, the margin decline corresponded to cost of revenue increasing at a faster rate than revenue.
- Current quarter gross margin is lower than the preceding quarter but higher than the same quarter one year ago. Revenue and gross profit are higher in both comparisons, while cost of revenue is also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.5%
Gross profit
$103.4B
Revenue
$213.4B
Cost of revenue
$110.0B
Quarter-over-quarter change
-2.3 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $213.4B | $103.4B | $110.0B | 48.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.3 pts
Year-over-year change
Dec 31, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin corresponded to revenue growing at a faster rate than cost of revenue. Sequentially, the margin decline corresponded to cost of revenue increasing at a faster rate than revenue.
Current quarter gross margin is lower than the preceding quarter but higher than the same quarter one year ago. Revenue and gross profit are higher in both comparisons, while cost of revenue is also higher.
Monitor the relative growth rates of revenue and cost of revenue, given the sequential weakening in gross margin.