With the ongoing US tariff conflict, one would expect Amazon.com Inc (NASDAQ: AMZN), a household name for electronic commerce, to be severely affected.
However, Amazon did not incur heavy losses.
On the contrary, it delivered a robust performance in its second quarter of 2025 (2Q 2025) ending 30 June 2025.
This strong showing is largely due to its diversified business, where its service-based business such Amazon Web Services (AWS) continued to thrive.
Here are some highlights from Amazon’s latest quarterly earnings release.
Headline financials and drivers
In 2Q 025, Amazon reported a 13% year-on year (YoY) increase in revenue to US$167.7 billion.
The e-commerce giant also saw a surge in net profits of 34.8 % YoY to US$18.2 billion.
This growth was primarily driven by the increase in net sales of AWS by 17.5% YoY to US$30.9 million.
Amazon’s management team credits the impressive earnings to its ability to capitalise on the booming artificial intelligence (AI) market.
For its consumers, Amazon introduced generative AI to improve the shopping experience, such as converting product reviews into audio summaries with “Hear the highlights” and helping sellers optimise content with “Enhance My Listing”.
Amazon also rolled out DeepFleet, an AI system that enhances coordination among its fleet of over one million robots.
DeepFleet enabled the optimisation of delivery routes and removed operational bottlenecks, thereby improving robot travel efficiency by 10%.
Long-term product and service developments
Amazon also announced some developments that look set to support the firm’s growth down the road.
This includes the announcement of the expansion of Same-Day and Next-Day Delivery to millions of customers in over 4,000 smaller cities, towns and rural communities by the end of 2025.
This development hinges on Amazon being the go-to platform for convenient delivery of essential goods in these new customer segments.
Strong loyalty from Amazon’s customers will drive the stickiness of its service offerings in a virtuous cycle.
Another long-term play would be Amazon’s Project Kuiper initiative.
This project aims to provide fast and low-latency internet to nearly every corner of the globe, with full-scale deployment expected over the coming years.
Project Kuiper gives Amazon access to a massive addressable market from individuals to organisations of its global broadband internet service, developing a new high-growth revenue stream.
This initiative also gives the company the opportunity to sync it with AWS’ ecosystem and its other connected devices such as Alexa to target untapped customer segments, especially in emerging markets.
Key partnerships with ecosystem players
Furthermore, Amazon made several strategic moves with industry leaders which helped boost its businesses.
On 16 June 2025, there was an announcement of a partnership between Amazon Ads and Roku (NASDAQ: ROKU), a large player in the streaming platform space.
This partnership aims to create the largest authenticated connected television (CTV) landscape of approximately 80 million logged-in US CTV households.
CTV refers to television sets that can stream digital video content via internet-connected applications or devices.
The early results show that Amazon advertisers reached 40% more unique viewers and cut ad repetition by 30%, tripling the value of their ad spend.
This initiative boosts Amazon’s appeal as an ad platform which supports their top-line growth.
Another area supported by partnerships is AI integration.
In its 2Q 2025 earnings release, Amazon commented on its partnerships with leading AI providers such as Anthropic and Salesforce Inc (NYSE: CRM).
These partnerships strengthen Amazon’s AI ecosystem by launching new AI agents and tools on AWS Marketplace and new foundational models in Amazon Bedrock to enable customers to deploy sophisticated AI solutions easily.
Get Smart: Decent growth for a behemoth
Despite its large size, Amazon has proven that it still has what it takes to generate eye-catching growth.
The company’s consistent AI innovations supported by global tailwinds enable it to enjoy sustained long-term growth.
Investors who are seeking an e-commerce cum technology giant with multiple growth levers should consider Amazon as a viable option.
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Disclosure: Gabriel Lim does not own shares in any of the companies mentioned.
