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Amazon did not report $170 billion of fourth-quarter revenue. For the quarter ended December 31, 2025, net sales were $213.4 billion, up 14% year over year. AWS revenue rose 24% to $35.6 billion, while Amazon said advertising revenue increased 22%.
The $170 billion figure appears to be a rounded reference to Amazon’s first-quarter 2026 guidance, not Q4 revenue. The supplied claim that Amazon shares rose 6% also cannot be stated reliably without a confirmed trading date and session; contemporaneous Q4 coverage instead reported that shares fell after Amazon disclosed its roughly $200 billion 2026 capital-spending plan.
What Amazon actually reported for Q4 2025
Amazon released its fourth-quarter results on February 5, 2026. The company exceeded the upper end of its earlier $206 billion-$213 billion sales forecast by reporting $213.4 billion, although diluted earnings per share were slightly below the analyst expectation cited by The Associated Press.
| Metric | Q4 2025 | Q4 2024 | Change or context |
|---|---|---|---|
| Net sales | $213.4 billion | $187.8 billion | Up 14% |
| AWS sales | $35.6 billion | Not stated in the release table | Up 24% |
| Operating income | $25.0 billion | $21.2 billion | Increased |
| Net income | $21.2 billion | $20.0 billion | Increased |
| Diluted EPS | $1.95 | $1.86 | Increased |
| AWS operating income | $12.5 billion | $10.6 billion | Increased |
Amazon’s SEC-filed release also says Q4 operating income included charges related to an Italian tax dispute and lawsuit settlement, severance, and store impairments. Amazon estimated operating income would have been $27.4 billion without those charges.
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AWS supplied disproportionate profit
AWS generated $35.6 billion of quarterly sales and $12.5 billion of operating income. Dividing the reported figures shows that AWS represented roughly one-sixth of Amazon’s company-wide revenue but about half of quarterly operating income—an inference from Amazon’s segment and consolidated numbers, not a company-reported percentage.
For full-year 2025, AWS revenue reached $128.7 billion, up 20%, and AWS operating income was $45.6 billion. Amazon attributed demand to cloud computing and AI workloads, data-center expansion, custom chips such as Trainium and Graviton, and managed AI services.
In its earnings commentary, Amazon said Trainium and Graviton together had an annual revenue run rate above $10 billion and were growing at a triple-digit rate. It said Trainium2 was fully subscribed and that nearly all Trainium3 supply was expected to be committed by mid-2026. These are management statements about demand and expected commitments, not proof that every planned investment will earn a particular return. See Amazon’s Q4 earnings summary.
Advertising grew quickly, but is disclosed differently
Amazon said advertising revenue grew 22% year over year in Q4. Advertising services are reported as a revenue category rather than as a standalone operating segment, so Amazon does not provide a separate advertising operating-profit figure in the release.
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The category includes products such as sponsored listings and display and video placements across Amazon’s marketplace, devices, and services. Its strategic appeal is that it monetizes shopping intent and Amazon’s customer and seller ecosystem, but the Q4 release confirms growth—not a separately reported advertising margin.
Why strong results could still unsettle investors
The central issue was the scale and timing of Amazon’s investment program. Amazon expects approximately $200 billion of capital expenditure in 2026, covering AI infrastructure, chips, robotics, low-earth-orbit satellites, and other projects.
- Operating cash flow rose 20% to $139.5 billion for 2025.
- Trailing-twelve-month free cash flow fell to $11.2 billion from $38.2 billion.
- Capital expenditures increased by $50.7 billion year over year, primarily because of AI investment.
- First-quarter 2026 operating-income guidance was $16.5 billion-$21.5 billion, versus $18.4 billion in Q1 2025, with Amazon citing higher Amazon Leo costs and other investments.
Investors price the cash required to build capacity and the returns expected from it, not just the quarter already finished. AWS growth can therefore be strong while the shares fall if the market thinks AI infrastructure spending will depress free cash flow, add depreciation and energy costs, or produce uncertain returns.
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What the “$170 billion” number represents
Amazon’s official first-quarter 2026 net-sales guidance was $173.5 billion-$178.5 billion, representing expected year-over-year growth of 11%-15%. The AP report cited analyst expectations of $175.6 billion. A rounded “$170 billion” figure could have come from that forward guidance or expectation, but it is not Q4 revenue.
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What can—and cannot—be said about the 6% share move
A percentage move needs a date, the regular-session or after-hours designation, and opening and closing prices. The available February 5 Q4 coverage from The Associated Press describes Amazon shares falling after the $200 billion spending announcement, not rising 6%.
A separate Reuters report published October 30, 2025 described a 14% after-hours rise following Amazon’s third-quarter results. That is a different quarter and trading reaction, and it should not be substituted for a verified Q4 percentage.
What investors should monitor next
- AWS growth and operating income as AI capacity comes online.
- Advertising growth, while remembering that its standalone profit is not disclosed.
- Capital expenditure, depreciation, energy costs, and their effect on free cash flow.
- Customer commitments for Trainium and other AI capacity, distinguishing management forecasts from recognized revenue.
- Changes to quarterly guidance as Amazon scales its infrastructure program.
Frequently Asked Questions
Was Amazon’s Q4 2025 revenue $170 billion?
No. Amazon reported $213.4 billion of Q4 2025 net sales. The $173.5 billion-$178.5 billion figure was its Q1 2026 sales guidance.
How much did AWS revenue grow?
AWS revenue rose 24% year over year to $35.6 billion in Q4 2025.
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Why did investors worry despite AWS growth?
Amazon planned about $200 billion of 2026 capital expenditure, while trailing free cash flow had fallen to $11.2 billion from $38.2 billion.
The Bottom Line
Amazon’s Q4 showed strong AWS and advertising momentum, but the headline combines separate facts. Q4 revenue was $213.4 billion—not $170 billion—and the claimed 6% share rise is unverified for this release. The investment question is whether AWS and related AI demand can generate returns that justify Amazon’s roughly $200 billion 2026 spending plan.
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