Stock Analysis on Net
Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

Common-Size Income Statement 
Quarterly Data

Amazon.com Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Net product sales 39.28 42.17 41.10 40.69 41.09 43.79 42.55 41.61 42.50 45.13 44.15 43.93 44.74 47.27 46.69 46.67 48.48 51.97 49.52 51.29 52.98
Net service sales 60.72 57.83 58.90 59.31 58.91 56.21 57.45 58.39 57.50 54.87 55.85 56.07 55.26 52.73 53.31 53.33 51.52 48.03 50.48 48.71 47.02
Net sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales -48.18 -51.53 -49.21 -48.19 -49.45 -52.66 -50.97 -49.86 -50.68 -54.46 -52.43 -51.62 -53.23 -57.40 -55.29 -54.79 -57.11 -60.28 -56.79 -56.75 -57.50
Gross profit 51.82% 48.47% 50.79% 51.81% 50.55% 47.34% 49.03% 50.14% 49.32% 45.54% 47.57% 48.38% 46.77% 42.60% 44.71% 45.21% 42.89% 39.72% 43.21% 43.25% 42.50%
Fulfillment -15.03 -14.45 -15.36 -15.49 -15.80 -14.89 -15.52 -15.93 -15.57 -15.35 -15.60 -15.85 -16.41 -15.48 -16.19 -16.78 -17.41 -16.33 -16.69 -15.60 -15.23
Technology and infrastructure -16.29 -13.78 -16.07 -16.20 -14.77 -12.55 -14.00 -15.07 -14.25 -12.97 -14.82 -16.32 -16.06 -13.95 -15.33 -14.91 -12.75 -11.14 -12.98 -12.27 -11.51
Sales and marketing -5.68 -6.68 -6.49 -6.81 -6.27 -6.99 -6.68 -7.10 -6.74 -7.59 -7.37 -8.00 -7.99 -8.59 -8.67 -8.32 -7.15 -7.87 -7.23 -6.65 -5.72
General and administrative -1.43 -1.27 -1.60 -1.77 -1.69 -1.52 -1.71 -2.06 -1.91 -1.77 -1.79 -2.38 -2.39 -2.23 -2.41 -2.39 -2.23 -1.84 -1.94 -1.91 -1.83
Other operating income (expense), net -0.25 -0.59 -1.60 -0.12 -0.20 -0.09 -0.16 -0.07 -0.16 -0.09 -0.17 -0.11 -0.18 -0.51 -0.13 -0.07 -0.21 -0.02 0.01 -0.01 -0.04
Operating income 13.14% 11.71% 9.67% 11.43% 11.82% 11.29% 10.96% 9.92% 10.68% 7.77% 7.82% 5.72% 3.75% 1.83% 1.99% 2.74% 3.15% 2.52% 4.38% 6.81% 8.17%
Interest income 0.63 0.53 0.61 0.65 0.68 0.66 0.79 0.80 0.69 0.53 0.54 0.49 0.48 0.30 0.22 0.13 0.09 0.09 0.11 0.09 0.10
Interest expense -0.44 -0.32 -0.30 -0.31 -0.35 -0.30 -0.38 -0.40 -0.45 -0.42 -0.56 -0.63 -0.65 -0.47 -0.49 -0.48 -0.41 -0.35 -0.44 -0.38 -0.37
Other income (expense), net 8.62 0.55 5.65 0.67 1.77 0.25 -0.02 -0.01 -1.87 0.17 0.72 0.05 -0.35 -2.31 0.60 -4.57 -7.36 8.61 -0.15 1.12 1.56
Non-operating income (expense) 8.80% 0.76% 5.97% 1.01% 2.10% 0.61% 0.39% 0.39% -1.62% 0.28% 0.70% -0.09% -0.51% -2.48% 0.33% -4.92% -7.67% 8.35% -0.48% 0.82% 1.29%
Income (loss) before income taxes 21.94% 12.47% 15.64% 12.44% 13.93% 11.90% 11.35% 10.30% 9.06% 8.05% 8.52% 5.63% 3.23% -0.64% 2.32% -2.19% -4.52% 10.87% 3.89% 7.64% 9.46%
(Provision) benefit for income taxes -5.27 -2.32 -3.84 -1.60 -2.92 -1.24 -1.70 -1.19 -1.72 -1.80 -1.61 -0.60 -0.74 0.82 -0.05 0.53 1.22 -0.45 -1.04 -0.77 -1.99
Equity-method investment activity, net of tax -0.01 -0.22 -0.04 -0.01 0.00 -0.01 0.00 0.00 -0.06 0.00 0.00 -0.01 0.00 0.01 0.00 -0.01 0.00 0.00 0.00 0.01 0.00
Net income (loss) 16.67% 9.93% 11.76% 10.83% 11.00% 10.65% 9.65% 9.11% 7.28% 6.25% 6.90% 5.02% 2.49% 0.19% 2.26% -1.67% -3.30% 10.42% 2.85% 6.88% 7.47%

Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

A significant structural shift in the revenue composition is evident over the analyzed period. The company has transitioned from a product-dominant revenue stream to a service-dominant one, which has fundamentally altered the margin profile and overall profitability of the organization.

Revenue Mix Evolution
A consistent decline in net product sales as a percentage of net sales is observed, falling from 52.98% in March 2021 to 39.28% by March 2026. Conversely, net service sales have grown from 47.02% to 60.72% over the same interval. This indicates a strategic pivot toward higher-margin service offerings, such as cloud computing and advertising, reducing the relative reliance on direct retail sales.
Gross Margin Performance
The cost of sales has decreased as a percentage of net sales, moving from a peak of -60.28% in December 2021 to -48.18% by March 2026. This efficiency gain has directly contributed to an expansion of the gross profit margin, which rose from 42.50% in March 2021 to 51.82% in March 2026, reflecting improved pricing power or a more favorable mix of high-margin services.
Operating Expense Trends
Fulfillment costs remained relatively stable, fluctuating between approximately -14% and -17% of net sales, showing no aggressive long-term contraction. Technology and infrastructure spending exhibited volatility, peaking at -16.32% in June 2023 before settling at -16.29% in March 2026. Sales and marketing expenses showed a general downward trend, decreasing from a high of -8.67% in September 2022 to -5.68% by March 2026, suggesting increased brand equity or improved marketing efficiency.
Operating and Net Profitability
Operating income as a percentage of net sales experienced a period of compression, reaching a low of 1.83% in December 2022. However, a strong recovery followed, with operating margins climbing to 13.14% by March 2026. Net income mirrored this volatility, recording negative values in early 2022 before trending upward to reach 16.67% of net sales by the end of the period. This recovery is closely linked to the expansion of service revenues and the optimization of operating expenses.
Non-Operating Impact
Non-operating income and expenses have introduced significant volatility into the pre-tax income. Notable fluctuations occurred in the "Other income (expense), net" line, particularly with a substantial spike to 8.62% in March 2026, which contributed to the overall increase in net income during the final quarter of the data set.

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