Amazon Ad Revenue Rises 18% to $13.9 Billion in First Quarter

Amazon smashed Wall Street expectations for its first quarter of 2025, bolstered by an 18% increase in advertising revenue.

Advertising services revenue, which includes sales to sellers, vendors, publishers, authors and others through programs such as sponsored ads, display and video advertising, came in at $13.9 billion for the quarter.

Meanwhile, net sales for its subscription services segment grew 9% to $11.72 billion during the quarter. The segment includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book and other non-Amazon Web Services subscription services.

Here are the quarterly results:

Net income: $17.1 billion, compared to $10.4 billion a year ago.

Earnings per share: $1.59 per diluted share, compared to $1.35 per share expected by analysts surveyed by Zacks Investment Research.

Net sales: $155.7 billion, up 9% year over year, compared to $154.56 billion expected by analysts surveyed by Zacks Investment Research.

Operating income: $18.4 billion, compared to $15.3 billion a year ago.

Looking ahead, Amazon is expecting net sales between $159 billion and $164 billion in the second quarter, or year over year growth between 7% to 11%. The guidance anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates. Operating income is expected to be between $13 billion and $17.5 billion, compared with $14.7 billion in second quarter 2024.

Shares of Amazon fell over 4% in after-hours trading following the earnings announcement.

The tech and retail giant’s entertainment highlights during its first quarter included a joint venture to create the next generation of the James Bond film franchise, which will be produced by Amy Pascal and David Heyman.

“Reacher” Season 3 also became Amazon’s biggest returning season ever with 54.6 million viewers in its first 19 days and Season 2 of LeBron James’s “Mind the Game” podcast, co-hosted by NBA Hall-of-Famer Steve Nash and distributed by Wondery, premiered.

In January, Prime Video celebrated the one-year anniversary of launching its ad-supported tier, which is the default for all subscribers. The service has an average monthly ad-supported reach of more than 115 million customers in the U.S., and more than 200 million globally. 

Amazon plans to expand its Prime Video ad tier to new markets in 2025 — including Brazil, India, Japan, the Netherlands and New Zealand. The ad-supported tier is already available in the U.S., Australia, Austria, Canada, France, Germany, Italy, Mexico, Spain and the U.K.

Currently, Amazon Prime, which includes Prime Video, costs $14.99 per month or $139 a year. A membership that only includes Prime Video and none of the company’s shipping benefits costs $8.99 a month. Those who want an ad-free streaming experience will be charged an additional $2.99 per month.

The company will hold its upfront presentation to advertisers on May 12 at 6:30 p.m. ET at The Beacon Theater in New York City.

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