Amazon’s Q3 Earnings Soar Past Expectations with a 13% Revenue Jump

In a recent financial disclosure, Amazon reported its third-quarter earnings, revealing a significant surge in revenue, surpassing analysts’ expectations. The results indicate a strong performance by the e-commerce giant, even as it navigates challenges posed by inflation and rising interest rates.

Key Takeaways:

  • Amazon’s Q3 revenue saw a 13% increase, indicating a business acceleration.
  • The company’s earnings per share stood at 94 cents, exceeding the LSEG estimate of 58 cents.
  • Amazon Web Services (AWS) reported a revenue of $23.1 billion, slightly missing the expected $23.2 billion.
  • Advertising revenue for Amazon reached $12.1 billion, surpassing the expected $11.6 billion.
  • Amazon’s fourth-quarter sales forecast ranges between $160 billion and $167 billion.
  • The company’s net income tripled to $9.9 billion, with a pre-tax valuation gain of $1.2 billion from its investment in Rivian, an electric car company.

A Closer Look at the Numbers

Amazon’s third-quarter results showcased a revenue jump of 13%, signaling a potential acceleration in business operations. This comes after a challenging 2022, marked by the impacts of soaring inflation and increasing interest rates. Despite these hurdles, Amazon’s core e-commerce business continued its recovery, expanding by 7% year over year. This growth is particularly noteworthy given that it includes the results of this year’s Prime Day promotion, which Amazon described as its “biggest ever” sale.

AWS and Advertising: Two Pillars of Growth

While Amazon’s e-commerce operations remain its primary revenue driver, AWS and advertising have emerged as significant contributors to the company’s financial health. AWS, a leader in the cloud market, reported a growth of 12% in the quarter. However, it’s worth noting that competitors like Microsoft Azure and Google Cloud reported higher growth rates of 29% and 22%, respectively.

On the advertising front, Amazon continues to shine. The company’s ad revenue soared by 26% from the previous year, outpacing competitors like Google and Facebook. This growth underscores the increasing importance of digital advertising for Amazon, as third-party sellers and major brands ramp up their ad spending to gain visibility in a competitive marketplace.

Cost-Cutting Measures and Future Outlook

Amazon has been implementing cost-cutting measures over the past year, a response to the rapid expansion during the pandemic. These measures, which included laying off 27,000 employees and discontinuing some unprofitable ventures, seem to be paying off. CEO Andy Jassy highlighted the company’s “strong third quarter” and emphasized the significant rise in “overall operating income and free cash flow.”

As the year draws to a close, all eyes will be on Amazon’s performance in the fourth quarter, especially given the upcoming holiday season. With a forecasted sales range of $160 billion to $167 billion, the company is poised for another strong quarter.


Amazon’s Q3 results underscore the company’s resilience and adaptability in a dynamic market environment. As the retail landscape continues to evolve, Amazon’s strategic moves, from cost-cutting to diversifying its revenue streams, position it well for sustained growth. With AI tools like Livy AI and ChatGPT gaining traction, there’s potential for even greater efficiency in the industry, provided companies like Amazon choose to harness their capabilities.