Amazon reported better-than-expected Q1 results on April 29th, with revenue up 17% to $181.5B and record worldwide operating margin of 13.1% (+6.7% excluding AWS) despite higher transportation cost pressures. AWS posted the strongest growth rate in 15 quarters (+28%), Advertising momentum continued as Amazon pushed into new partnerships with Netflix and Comcast, and better price competitiveness, assortment expansion, and momentum in grocery contributed to a slight acceleration in the Online Stores business.
Investor reaction appeared slightly more constructive, as Q1 capital expenditures of $43.2B remained in line with previously guided AI infrastructure acceleration, with management reiterating its unwavering commitment to invest aggressively where cloud and AI demand signals are strong.
Download Harvest Group’s full earnings recap with unique takeaways for suppliers here: