Amazon on Wednesday reported a sharp increase in first-quarter profits and net sales, fueled by robust demand for its cloud computing division, Amazon Web Services (AWS). The e-commerce and technology giant posted net income of $12.7 billion, up from $9.8 billion in the same period last year, while revenue climbed 12% to $148.2 billion.
Cloud Computing Drives Growth
AWS, Amazon's cloud computing arm, saw revenue jump 18% to $25.4 billion, surpassing analyst expectations. The division's operating income rose to $9.3 billion, accounting for a significant portion of Amazon's total operating profit. The company attributed the growth to increased enterprise adoption of cloud services and artificial intelligence workloads.
Other Business Segments
Amazon's advertising business also performed well, with revenue increasing 22% to $12.1 billion. However, its e-commerce segment faced headwinds from higher shipping costs and cautious consumer spending, with North American retail sales growing only 5%.
CEO Andy Jassy highlighted the company's investments in AI and data centers, stating that AWS remains well-positioned to capture future demand. The results come amid a broader tech industry shift toward cloud and AI services.
Outlook
For the current quarter, Amazon forecast net sales between $152 billion and $158 billion, slightly below some estimates. The company also announced plans to increase capital expenditures for infrastructure, including data centers and AI technology.
