Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Amazon.com Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance presented demonstrates significant fluctuations and overall growth over the five-year period. Net sales experienced consistent year-over-year increases, while profitability exhibited more volatility. A detailed examination of key income statement items reveals underlying trends in revenue composition, cost management, and non-operating factors influencing net income.
- Revenue Growth
- Net product sales show a steady, albeit moderating, growth rate, increasing from US$241,787 million to US$296,266 million. However, the most substantial growth is observed in net service sales, which more than doubled from US$228,035 million to US$420,658 million. This indicates a strategic shift towards, and increasing reliance on, service offerings. Consequently, net sales as a whole demonstrate robust growth, rising from US$469,822 million to US$716,924 million.
- Profitability Analysis
- Gross profit increased consistently, mirroring the growth in net sales, moving from US$197,478 million to US$360,510 million. However, operating income experienced considerable volatility. A substantial decline occurred between 2021 and 2022, followed by a strong recovery and continued growth in subsequent years, reaching US$79,975 million in 2025. This fluctuation is likely attributable to changes in operating expenses, particularly fulfillment, technology and infrastructure, and other operating items.
- Fulfillment and technology and infrastructure costs have consistently increased year-over-year, representing a growing proportion of net sales. While sales and marketing expenses remained relatively stable between 2022 and 2024, they are projected to increase in 2025. General and administrative expenses remained relatively consistent throughout the period.
- Non-Operating Items
- Non-operating income (expense) significantly impacted overall profitability. 2022 experienced a substantial non-operating loss of US$-18,184 million, largely driven by losses on marketable equity securities. Subsequent years saw more moderate fluctuations, with a significant gain in 2025. The impact of marketable equity securities valuation gains (losses) is particularly noteworthy, contributing to substantial swings in other income (expense), net.
- Interest income increased steadily, while interest expense remained relatively stable. Upward adjustments relating to equity investments in private companies also contributed positively to other income (expense), net, particularly in 2025.
- Net Income
- Net income mirrored the volatility observed in operating and non-operating items. A significant decline was recorded in 2022, followed by a strong recovery and consistent growth in subsequent years, culminating in US$77,670 million in 2025. The provision (benefit) for income taxes also fluctuated considerably, impacting the final net income figure.
In summary, the company demonstrated strong revenue growth, particularly in its service segment. Profitability experienced volatility due to fluctuations in operating expenses and significant impacts from non-operating items, specifically related to marketable equity securities. Despite these fluctuations, net income ultimately exhibited a positive trend over the five-year period.
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