Analysis of Reportable Segments
Amazon.com Inc. operates in 3 segments: North America; International; and AWS.
Segment Profit Margin
Amazon.com Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 6.95% | 6.44% | 4.22% | -0.90% | 2.60% |
| International | 2.93% | 2.65% | -2.02% | -6.56% | -0.72% |
| AWS | 35.43% | 37.04% | 27.14% | 28.52% | 29.79% |
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).
Segment profit margins exhibited varied performance across the observed period. North America demonstrated a recovery and subsequent growth, while the International segment experienced initial challenges followed by improvement. Amazon Web Services (AWS) maintained consistently high margins, though with some fluctuation.
- North America
- The North America segment experienced a decline in profit margin from 2.60% in 2021 to -0.90% in 2022. A significant turnaround was then observed, with margins increasing to 4.22% in 2023, 6.44% in 2024, and further to 6.95% in 2025. This indicates a strengthening of profitability within the North American market after an initial period of contraction.
- International
- The International segment’s profit margin was negative throughout much of the period. It began at -0.72% in 2021, deteriorated to -6.56% in 2022, and remained negative at -2.02% in 2023. However, a positive trend emerged in the latter years, with margins reaching 2.65% in 2024 and 2.93% in 2025. This suggests successful efforts to improve profitability in international operations, though it remains the lowest margin segment.
- AWS
- AWS consistently reported the highest profit margins among the three segments. The margin decreased from 29.79% in 2021 to 28.52% in 2022 and 27.14% in 2023. A substantial increase was then recorded, reaching 37.04% in 2024, before moderating slightly to 35.43% in 2025. Despite the fluctuations, AWS maintained a strong and dominant profitability position.
Overall, the trend suggests a company-wide improvement in segment profitability, particularly in the latter half of the period. While the International segment continues to lag behind North America and AWS, its recent performance indicates a positive trajectory. AWS demonstrates robust and consistently high profitability, though with a noticeable increase in 2024 followed by a slight decline in 2025.
Segment Profit Margin: North America
Amazon.com Inc.; North America; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 29,619) | 24,967) | 14,877) | (2,847) | 7,271) |
| Net sales | 426,305) | 387,497) | 352,828) | 315,880) | 279,833) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 6.95% | 6.44% | 4.22% | -0.90% | 2.60% |
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).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 29,619 ÷ 426,305 = 6.95%
The North America segment demonstrated a significant recovery and subsequent growth in profitability between 2021 and 2025. Initial performance in 2021 was positive, but experienced a substantial downturn in 2022 before exhibiting consistent improvement through 2025.
- Operating Income
- Operating income experienced a considerable decline from US$7,271 million in 2021 to a loss of US$2,847 million in 2022. However, a strong rebound occurred in 2023, with operating income reaching US$14,877 million. This positive trend continued, with further increases to US$24,967 million in 2024 and US$29,619 million in 2025, indicating a sustained period of improved operational performance.
- Net Sales
- Net sales exhibited consistent year-over-year growth throughout the period. From US$279,833 million in 2021, sales increased to US$315,880 million in 2022, US$352,828 million in 2023, US$387,497 million in 2024, and ultimately reached US$426,305 million in 2025. This demonstrates a steady expansion of the segment’s revenue base.
- Segment Profit Margin
- The segment profit margin mirrored the operating income trend. It decreased from 2.60% in 2021 to -0.90% in 2022, reflecting the operating loss. A substantial improvement followed, with the margin increasing to 4.22% in 2023, 6.44% in 2024, and 6.95% in 2025. This indicates increasing efficiency in converting sales into profit within the North America segment. The margin’s progression suggests successful cost management and/or pricing strategies alongside revenue growth.
The correlation between operating income and segment profit margin is strong, suggesting that changes in profitability are directly linked to the segment’s operational efficiency and revenue generation. The recovery from the 2022 downturn is particularly noteworthy, demonstrating the segment’s resilience and ability to capitalize on market opportunities.
Segment Profit Margin: International
Amazon.com Inc.; International; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 4,750) | 3,792) | (2,656) | (7,746) | (924) |
| Net sales | 161,894) | 142,906) | 131,200) | 118,007) | 127,787) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 2.93% | 2.65% | -2.02% | -6.56% | -0.72% |
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).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 4,750 ÷ 161,894 = 2.93%
The International segment experienced significant volatility in operating performance between 2021 and 2025. Initially, the segment reported an operating loss, which widened considerably before improving substantially over the analyzed period.
- Operating Income (Loss)
- In 2021, the International segment recorded an operating loss of $924 million. This loss expanded dramatically to $7.746 billion in 2022, indicating a substantial deterioration in profitability. A partial recovery was observed in 2023, with the operating loss decreasing to $2.656 billion. Further improvement occurred in 2024, as the segment achieved an operating income of $3.792 billion. This positive trend continued into 2025, with operating income rising to $4.750 billion.
- Net Sales
- Net sales in the International segment decreased from $127.787 billion in 2021 to $118.007 billion in 2022, representing a decline. Sales then rebounded, increasing to $131.200 billion in 2023, $142.906 billion in 2024, and reaching $161.894 billion in 2025. This demonstrates a consistent upward trend in sales following the initial decrease.
- Segment Profit Margin
- The segment profit margin mirrored the operating income trend. In 2021, the margin was -0.72%. It declined sharply to -6.56% in 2022, reflecting the significant operating loss. The margin improved to -2.02% in 2023, and then turned positive, reaching 2.65% in 2024 and 2.93% in 2025. This indicates a substantial improvement in the segment’s ability to generate profit from its sales.
The substantial improvement in segment profit margin from 2023 to 2025, despite the initial decline in net sales from 2021 to 2022, suggests successful cost management strategies and/or increased pricing power within the International segment. The correlation between operating income and segment profit margin is strong, indicating that changes in profitability directly impact the segment’s overall financial performance.
Segment Profit Margin: AWS
Amazon.com Inc.; AWS; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 45,606) | 39,834) | 24,631) | 22,841) | 18,532) |
| Net sales | 128,725) | 107,556) | 90,757) | 80,096) | 62,202) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 35.43% | 37.04% | 27.14% | 28.52% | 29.79% |
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).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 45,606 ÷ 128,725 = 35.43%
The segment demonstrates a consistent upward trend in both operating income and net sales over the five-year period. However, the segment profit margin exhibits more fluctuation, with an initial decline followed by a significant increase and subsequent stabilization.
- Operating Income
- Operating income increased steadily from US$18,532 million in 2021 to US$45,606 million in 2025. The growth rate appears to have accelerated between 2022 and 2024, with a substantial increase of US$16,993 million. Growth slowed between 2024 and 2025, adding US$5,772 million.
- Net Sales
- Net sales mirrored the trend in operating income, rising from US$62,202 million in 2021 to US$128,725 million in 2025. Similar to operating income, the rate of sales growth was higher between 2022 and 2024, increasing by US$27,460 million, and slower between 2024 and 2025, increasing by US$21,169 million.
- Segment Profit Margin
- The segment profit margin experienced a decline from 29.79% in 2021 to 27.14% in 2023. This suggests increasing costs or pricing pressures during this period. However, a substantial increase was observed in 2024, with the margin reaching 37.04%. The margin then moderated slightly to 35.43% in 2025, indicating a potential stabilization after the significant improvement. The 2024 increase suggests improved operational efficiency or a shift in the sales mix towards higher-margin products or services.
The correlation between increasing net sales and operating income suggests strong revenue generation and effective cost management, particularly evident in the later years. The fluctuation in segment profit margin warrants further investigation to understand the underlying drivers of the initial decline and subsequent recovery.
Segment Return on Assets (Segment ROA)
Amazon.com Inc., ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 12.57% | 11.88% | 7.59% | -1.54% | 4.51% |
| International | 5.79% | 5.46% | -3.81% | -11.98% | -1.59% |
| AWS | 18.06% | 25.54% | 22.69% | 25.81% | 29.03% |
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).
Segment return on assets exhibited varied performance across the reporting periods. Significant fluctuations were observed in each segment, indicating differing operational efficiencies and market conditions impacting profitability relative to asset utilization.
- North America
- The North America segment demonstrated a notable recovery in returns. Beginning with a value of 4.51% in 2021, the segment experienced a decline to -1.54% in 2022. However, a strong upward trend followed, reaching 7.59% in 2023, 11.88% in 2024, and peaking at 12.57% in 2025. This suggests successful strategies in improving asset utilization and profitability within the North American market.
- International
- The International segment experienced more volatility and generally lower returns compared to North America and AWS. A negative return of -1.59% was recorded in 2021, which deteriorated significantly to -11.98% in 2022. A partial recovery was seen in 2023 (-3.81%), followed by further improvement to 5.46% in 2024 and 5.79% in 2025. While the trend is positive in recent years, the segment’s performance remains sensitive to external factors and requires continued monitoring.
- AWS
- AWS consistently generated the highest returns on assets among the three segments, although a gradual decline was observed. Starting at 29.03% in 2021, the segment’s return decreased to 25.81% in 2022 and 22.69% in 2023. A slight increase to 25.54% occurred in 2024, but a more pronounced decrease to 18.06% was recorded in 2025. This suggests increasing competition or investment in growth initiatives impacting short-term profitability relative to assets employed.
- Comparative Analysis
- The gap between AWS and the other two segments widened in 2021 and 2022, then narrowed slightly in 2023 and 2024. The substantial decline in AWS’s return in 2025, coupled with continued improvement in North America, reduced the performance differential. The International segment consistently lagged behind the others, indicating potential challenges in achieving profitability and efficient asset management in those markets.
Overall, the segment returns on assets demonstrate a dynamic landscape. While AWS remains the most profitable segment, its recent decline warrants attention. The North America segment’s recovery is a positive indicator, and the International segment shows signs of improvement, though further progress is needed.
Segment ROA: North America
Amazon.com Inc.; North America; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 29,619) | 24,967) | 14,877) | (2,847) | 7,271) |
| Assets | 235,652) | 210,120) | 196,029) | 185,268) | 161,255) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 12.57% | 11.88% | 7.59% | -1.54% | 4.51% |
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).
1 2025 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 29,619 ÷ 235,652 = 12.57%
The North America segment demonstrated a significant recovery and subsequent growth in profitability as measured by Return on Assets (ROA) between 2021 and 2025. Initial performance was strong in 2021, followed by a period of negative returns, and then a marked improvement over the subsequent years.
- Operating Income
- Operating income experienced substantial volatility. A decrease to a loss of US$2,847 million in 2022 followed an income of US$7,271 million in 2021. However, operating income rebounded strongly, reaching US$14,877 million in 2023, and continued to increase to US$24,967 million in 2024 and US$29,619 million in 2025. This indicates a successful turnaround and increasing operational efficiency.
- Assets
- Assets within the North America segment consistently increased throughout the period, rising from US$161,255 million in 2021 to US$235,652 million in 2025. This growth suggests continued investment and expansion within the segment, potentially driving the increased operating income observed in later years.
- Segment ROA
- Segment ROA mirrored the trend in operating income. It declined from 4.51% in 2021 to -1.54% in 2022, reflecting the operating loss. A substantial recovery was then observed, with ROA increasing to 7.59% in 2023, 11.88% in 2024, and further to 12.57% in 2025. This upward trajectory demonstrates improved efficiency in utilizing assets to generate profit within the North America segment. The consistent increase in ROA from 2023 to 2025 suggests a strengthening competitive position and effective capital allocation.
The correlation between operating income and segment ROA is strong, indicating that changes in profitability directly impact the segment’s ability to generate returns from its asset base. The increasing asset base coupled with improving ROA suggests that investments are being deployed effectively to drive profitable growth.
Segment ROA: International
Amazon.com Inc.; International; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 4,750) | 3,792) | (2,656) | (7,746) | (924) |
| Assets | 81,984) | 69,487) | 69,718) | 64,666) | 57,983) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 5.79% | 5.46% | -3.81% | -11.98% | -1.59% |
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).
1 2025 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 4,750 ÷ 81,984 = 5.79%
The International segment experienced significant volatility in profitability and asset utilization over the analyzed period. Initial years demonstrated operating losses, followed by a substantial improvement in recent years. This shift is reflected in the segment’s Return on Assets (ROA).
- Operating Income (Loss)
- The segment reported an operating loss of US$924 million in 2021. This loss expanded considerably to US$7,746 million in 2022, representing a substantial decline in profitability. A partial recovery occurred in 2023, with the loss narrowing to US$2,656 million. By 2024, the segment achieved an operating income of US$3,792 million, which further increased to US$4,750 million in 2025. This indicates a strong turnaround in the segment’s financial performance.
- Assets
- Total assets within the International segment consistently increased throughout the period. From US$57,983 million in 2021, assets grew to US$64,666 million in 2022 and continued to rise to US$69,718 million in 2023. A slight decrease was observed in 2024, with assets totaling US$69,487 million, before increasing significantly to US$81,984 million in 2025. This suggests ongoing investment and expansion within the International segment.
- Segment ROA
- The segment’s ROA mirrored the fluctuations in operating income. In 2021, ROA was -1.59%. This metric deteriorated sharply to -11.98% in 2022, coinciding with the largest operating loss. ROA improved to -3.81% in 2023, signaling a reduction in losses relative to the asset base. A substantial positive shift occurred in 2024, with ROA reaching 5.46%, and continued to improve to 5.79% in 2025. The positive ROA values in the later years indicate improved efficiency in generating profits from the segment’s assets.
The correlation between operating income and ROA is evident. The substantial increase in assets, coupled with the turnaround in operating income, drove the improvement in ROA observed in the latter part of the period. The segment’s ability to generate positive returns on its asset base appears to be strengthening.
Segment ROA: AWS
Amazon.com Inc.; AWS; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 45,606) | 39,834) | 24,631) | 22,841) | 18,532) |
| Assets | 252,588) | 155,953) | 108,533) | 88,491) | 63,835) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 18.06% | 25.54% | 22.69% | 25.81% | 29.03% |
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).
1 2025 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 45,606 ÷ 252,588 = 18.06%
Analysis of the segment reveals a complex performance trajectory over the five-year period. While operating income consistently increased, the segment’s Return on Assets (ROA) experienced fluctuations, ultimately demonstrating a declining trend.
- Operating Income
- Operating income exhibited a consistent upward trend throughout the period, increasing from US$18,532 million in 2021 to US$45,606 million in 2025. The growth rate appeared to accelerate between 2022 and 2024, with a substantial increase of approximately 74% from US$22,841 million to US$39,834 million. Growth slowed somewhat between 2024 and 2025, at approximately 14%.
- Assets
- Assets increased significantly over the period, rising from US$63,835 million in 2021 to US$252,588 million in 2025. The rate of asset growth also accelerated, mirroring the trend in operating income. The largest absolute increase in assets occurred between 2023 and 2025, adding US$144,055 million.
- Segment ROA
- Segment ROA began at 29.03% in 2021, then decreased to 25.81% in 2022 and continued to decline to 22.69% in 2023. A slight recovery was observed in 2024, with ROA increasing to 25.54%. However, this was followed by a further decline to 18.06% in 2025. Despite the increasing operating income, the ROA decrease suggests that asset growth outpaced income growth, diminishing the efficiency with which assets were utilized to generate profit. The decline in ROA from 2021 to 2025 represents a decrease of approximately 11 percentage points.
The increasing asset base, while supporting higher operating income, appears to be diluting the return generated on those assets. Further investigation into the composition of asset growth and the drivers of operating income would be necessary to fully understand this dynamic.
Segment Asset Turnover
Amazon.com Inc., asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 1.81 | 1.84 | 1.80 | 1.70 | 1.74 |
| International | 1.97 | 2.06 | 1.88 | 1.82 | 2.20 |
| AWS | 0.51 | 0.69 | 0.84 | 0.91 | 0.97 |
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).
Segment asset turnover ratios exhibit varied performance across the reporting periods. North America demonstrates relative stability, while International shows fluctuation, and AWS displays a consistent downward trend.
- North America
- The North America segment’s asset turnover ratio remained relatively consistent, beginning at 1.74 in 2021 and fluctuating around the 1.8 range through 2025, closing at 1.81. A slight increase is observed from 2021 to 2024, followed by a minor decrease in the most recent period. This suggests efficient asset utilization within this segment, with minimal significant change over the five-year period.
- International
- The International segment’s asset turnover ratio experienced more volatility. It began at 2.20 in 2021, decreased to 1.82 in 2022, and then increased to 2.06 in 2024 before declining to 1.97 in 2025. The initial decrease may indicate challenges in converting assets into revenue, while the subsequent increase suggests improved efficiency. The final decrease in 2025 warrants further investigation to determine the underlying causes.
- AWS
- The AWS segment’s asset turnover ratio demonstrates a clear and consistent downward trend. Starting at 0.97 in 2021, the ratio decreased steadily to 0.51 in 2025. This indicates a decreasing efficiency in utilizing assets to generate revenue within AWS. The consistent decline suggests potential issues with asset management, increased investment in less productive assets, or a slowdown in revenue growth relative to asset base. This trend requires close monitoring and further analysis to understand the drivers and potential implications.
Overall, the segment asset turnover ratios highlight differing operational efficiencies. While North America maintains a stable performance, the International segment shows variability, and AWS experiences a concerning decline in asset utilization. These trends suggest a need for segment-specific strategies to optimize asset management and improve revenue generation.
Segment Asset Turnover: North America
Amazon.com Inc.; North America; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 426,305) | 387,497) | 352,828) | 315,880) | 279,833) |
| Assets | 235,652) | 210,120) | 196,029) | 185,268) | 161,255) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.81 | 1.84 | 1.80 | 1.70 | 1.74 |
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Assets
= 426,305 ÷ 235,652 = 1.81
Analysis of the North America segment reveals a generally positive trend in operational efficiency as measured by asset turnover. Net sales within the segment increased consistently over the five-year period, rising from US$279.833 billion in 2021 to US$426.305 billion in 2025. Concurrently, segment assets also experienced growth, albeit at a slightly slower pace, increasing from US$161.255 billion to US$235.652 billion over the same timeframe.
- Segment Asset Turnover
- The segment asset turnover ratio, which indicates how efficiently assets are being used to generate sales, exhibited a slight decrease from 1.74 in 2021 to 1.70 in 2022. However, the ratio then demonstrated improvement, reaching 1.80 in 2023 and peaking at 1.84 in 2024. A minor decline to 1.81 was observed in 2025, but the ratio remained above the 2021 level. This suggests an overall enhancement in asset utilization within the North America segment, despite the final year showing a slight pullback.
The consistent growth in net sales, coupled with the increasing, and ultimately higher, asset turnover ratio, indicates that the North America segment is becoming more effective at converting its investments in assets into revenue. The slight decrease in the ratio during the final year warrants further investigation, but does not negate the positive trend observed over the majority of the period. The growth in assets appears to be supporting, and being supported by, increased sales activity.
Segment Asset Turnover: International
Amazon.com Inc.; International; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 161,894) | 142,906) | 131,200) | 118,007) | 127,787) |
| Assets | 81,984) | 69,487) | 69,718) | 64,666) | 57,983) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.97 | 2.06 | 1.88 | 1.82 | 2.20 |
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Assets
= 161,894 ÷ 81,984 = 1.97
The International segment experienced fluctuating net sales between 2021 and 2025, while assets consistently increased over the same period. This dynamic is reflected in the segment asset turnover ratio, which demonstrates a pattern of initial decline followed by partial recovery and subsequent stabilization.
- Net Sales
- Net sales in the International segment decreased from US$127,787 million in 2021 to US$118,007 million in 2022, representing a decline of approximately 7.8%. Sales then rebounded to US$131,200 million in 2023, continuing to grow to US$142,906 million in 2024 and reaching US$161,894 million in 2025. This indicates a recovery and subsequent growth in international sales following the 2022 dip.
- Assets
- The value of assets within the International segment exhibited a consistent upward trend throughout the five-year period. From US$57,983 million in 2021, assets increased to US$64,666 million in 2022, US$69,718 million in 2023, US$69,487 million in 2024, and ultimately reached US$81,984 million in 2025. The slight decrease in assets from 2023 to 2024 is a minor deviation from the overall increasing trend.
- Segment Asset Turnover
- The segment asset turnover ratio, calculated as net sales divided by assets, began at 2.20 in 2021. It decreased to 1.82 in 2022, coinciding with the decline in net sales and the increase in assets. A modest recovery was observed in 2023, with the ratio increasing to 1.88. Further improvement occurred in 2024, reaching 2.06. The ratio then slightly decreased to 1.97 in 2025. This suggests that while asset utilization initially declined, it improved as sales recovered, though it did not return to the 2021 level. The stabilization around 1.97-2.06 in the later years indicates a potentially consistent level of efficiency in asset utilization within the International segment.
The increasing asset base coupled with fluctuating sales suggests a changing capital structure or investment strategy within the International segment. The asset turnover ratio’s movement indicates the effectiveness with which the segment generates sales from its assets, and the recent stabilization suggests a maturing operational efficiency.
Segment Asset Turnover: AWS
Amazon.com Inc.; AWS; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 128,725) | 107,556) | 90,757) | 80,096) | 62,202) |
| Assets | 252,588) | 155,953) | 108,533) | 88,491) | 63,835) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.51 | 0.69 | 0.84 | 0.91 | 0.97 |
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Assets
= 128,725 ÷ 252,588 = 0.51
Analysis of the segment reveals a consistent decline in asset turnover for the period examined. While net sales increased steadily over the five years, the growth in assets outpaced sales growth, resulting in decreasing efficiency in asset utilization.
- Net Sales Trend
- Net sales exhibited a positive trajectory, increasing from 62,202 US$ millions in 2021 to 128,725 US$ millions in 2025. This represents a substantial overall increase, indicating continued revenue growth within the segment.
- Asset Growth Trend
- Assets experienced a more rapid increase than net sales. Starting at 63,835 US$ millions in 2021, assets grew to 252,588 US$ millions in 2025. This significant asset accumulation suggests substantial investment in infrastructure, equipment, or other long-term assets.
- Segment Asset Turnover
- The segment asset turnover ratio decreased consistently from 0.97 in 2021 to 0.51 in 2025. This indicates a diminishing ability to generate sales from each dollar of assets employed. The ratio’s decline suggests increasing inefficiencies in asset management or a shift towards assets that require longer periods to generate revenue.
- The decrease from 0.97 to 0.91 between 2021 and 2022 was relatively modest. However, the subsequent declines – from 0.91 to 0.84 (2023), 0.84 to 0.69 (2024), and 0.69 to 0.51 (2025) – were more pronounced, signaling an accelerating trend of decreasing asset efficiency.
The divergence between sales growth and asset growth warrants further investigation. Potential factors contributing to the declining asset turnover could include increased investment in long-term projects, a change in the composition of assets towards less liquid items, or a slowdown in the rate of sales relative to asset expansion. Continued monitoring of this trend is recommended.
Segment Capital Expenditures to Depreciation
Amazon.com Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 2.32 | 1.70 | 1.28 | 2.05 | 4.05 |
| International | 1.55 | 1.49 | 1.03 | 1.93 | 3.39 |
| AWS | 4.50 | 4.00 | 1.98 | 2.81 | 2.07 |
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 relationship between segment capital expenditures and depreciation exhibits distinct patterns across the reported periods and segments. Generally, the ratios decreased from 2021 to 2023, then increased in subsequent years, though the magnitude and timing of these changes vary significantly by segment.
- North America
- The North America segment experienced a substantial decrease in the ratio from 4.05 in 2021 to 1.28 in 2023. This suggests a period where depreciation more closely tracked capital expenditures. A subsequent recovery is observed, with the ratio increasing to 2.32 by 2025, indicating renewed investment outpacing depreciation. The 2025 value remains below the 2021 level, however.
- International
- Similar to North America, the International segment demonstrated a declining ratio from 3.39 in 2021 to 1.03 in 2023. The decrease was less pronounced than in North America. The ratio then increased to 1.55 by 2025, but the growth was more moderate. The 2025 value also remains below the initial 2021 level.
- AWS
- The AWS segment followed a different trajectory. While a slight decrease was noted from 2.07 in 2021 to 1.98 in 2023, the ratio then increased significantly, reaching 4.50 in 2025. This indicates substantial capital expenditure relative to depreciation within AWS during the later periods, potentially reflecting significant investment in infrastructure to support growth. The 2025 value is more than double the 2021 value.
Overall, the observed trends suggest a period of capital expenditure moderation in North America and International segments through 2023, followed by a resumption of investment. AWS, conversely, demonstrated a consistent and accelerating pattern of capital expenditure relative to depreciation throughout the analyzed period. These differing patterns may reflect varying growth rates, investment strategies, and asset lifecycles across the segments.
Segment Capital Expenditures to Depreciation: North America
Amazon.com Inc.; North America; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net additions to property and equipment | 35,919) | 24,348) | 17,529) | 23,682) | 37,397) |
| Depreciation and amortization expense on property and equipment | 15,503) | 14,285) | 13,678) | 11,565) | 9,234) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 2.32 | 1.70 | 1.28 | 2.05 | 4.05 |
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Net additions to property and equipment ÷ Depreciation and amortization expense on property and equipment
= 35,919 ÷ 15,503 = 2.32
Analysis of segment capital expenditures to depreciation for North America reveals a fluctuating pattern over the five-year period. Initial values indicate a relatively high level of capital investment compared to depreciation, which subsequently decreased before showing signs of recovery.
- Net additions to property and equipment
- Net additions to property and equipment decreased significantly from US$37,397 million in 2021 to US$17,529 million in 2023. A subsequent increase is observed in 2024, reaching US$24,348 million, and continuing to US$35,919 million in 2025. This suggests a period of reduced investment followed by renewed expansion.
- Depreciation and amortization expense on property and equipment
- Depreciation and amortization expense exhibited a consistent upward trend throughout the period, increasing from US$9,234 million in 2021 to US$15,503 million in 2025. This increase is likely attributable to the accumulated effect of prior capital investments.
- Segment capital expenditures to depreciation
- The segment capital expenditures to depreciation ratio decreased from 4.05 in 2021 to 1.28 in 2023, indicating a diminishing rate of capital investment relative to the depreciation of existing assets. A modest recovery to 1.70 is seen in 2024, followed by a further increase to 2.32 in 2025. This suggests that recent capital expenditures are becoming a more significant proportion of depreciation expense, potentially indicating a shift towards a more growth-oriented investment strategy after a period of consolidation.
The observed fluctuations in the capital expenditures to depreciation ratio warrant further investigation. The initial decline may reflect a strategic decision to optimize existing assets or a temporary slowdown in expansion plans. The subsequent increase suggests a renewed focus on growth and investment in the North American segment.
Segment Capital Expenditures to Depreciation: International
Amazon.com Inc.; International; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net additions to property and equipment | 7,617) | 6,643) | 4,144) | 6,711) | 10,259) |
| Depreciation and amortization expense on property and equipment | 4,907) | 4,462) | 4,016) | 3,483) | 3,022) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.55 | 1.49 | 1.03 | 1.93 | 3.39 |
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Net additions to property and equipment ÷ Depreciation and amortization expense on property and equipment
= 7,617 ÷ 4,907 = 1.55
Analysis of segment capital expenditures to depreciation for the international segment reveals a fluctuating pattern over the five-year period. Initial values indicate a relatively high level of capital expenditure relative to depreciation, which subsequently decreased before stabilizing. Net additions to property and equipment and depreciation and amortization expense on property and equipment both experienced changes throughout the period, influencing the observed ratio trend.
- Segment Capital Expenditures to Depreciation
- The ratio decreased significantly from 3.39 in 2021 to 1.93 in 2022, indicating a reduced level of capital investment relative to the depreciation of existing assets. This decrease could be attributed to a substantial reduction in net additions to property and equipment alongside a moderate increase in depreciation expense. A further decline to 1.03 was observed in 2023, suggesting a continued prioritization of utilizing existing assets over significant new investments.
- Beginning in 2024, the ratio began to increase, reaching 1.49 and then 1.55 in 2025. This upward trend coincides with increasing net additions to property and equipment, while depreciation expense also continued to rise. The stabilization of the ratio in the latter two years suggests a more balanced approach to capital investment and asset utilization within the international segment.
- Net Additions to Property and Equipment
- Net additions to property and equipment decreased substantially from US$10,259 million in 2021 to US$6,711 million in 2022, and continued to decline to US$4,144 million in 2023. This represents a significant reduction in capital spending. However, investment began to recover in 2024 and 2025, reaching US$6,643 million and US$7,617 million respectively.
- Depreciation and Amortization Expense
- Depreciation and amortization expense exhibited a consistent upward trend throughout the period, increasing from US$3,022 million in 2021 to US$4,907 million in 2025. This increase is expected as the asset base grows, even with the fluctuations in net additions to property and equipment. The consistent rise in depreciation expense contributes to the changing dynamics of the capital expenditures to depreciation ratio.
In summary, the international segment experienced a period of decreasing capital expenditure relative to depreciation, followed by a stabilization and slight increase in recent years. This pattern is influenced by both changes in investment levels and the ongoing depreciation of the existing asset base.
Segment Capital Expenditures to Depreciation: AWS
Amazon.com Inc.; AWS; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net additions to property and equipment | 96,496) | 53,267) | 24,843) | 27,755) | 22,047) |
| Depreciation and amortization expense on property and equipment | 21,450) | 13,320) | 12,531) | 9,876) | 10,653) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 4.50 | 4.00 | 1.98 | 2.81 | 2.07 |
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Net additions to property and equipment ÷ Depreciation and amortization expense on property and equipment
= 96,496 ÷ 21,450 = 4.50
Analysis of segment capital expenditures to depreciation for the observed period reveals a fluctuating pattern with an overall increasing trend. Net additions to property and equipment demonstrate considerable volatility, while depreciation and amortization expense exhibits a more consistent, albeit increasing, trajectory. The resulting ratio, segment capital expenditures to depreciation, provides insight into the pace of asset investment relative to asset consumption.
- Net Additions to Property and Equipment
- Net additions to property and equipment increased from US$22.047 billion in 2021 to US$27.755 billion in 2022, representing a substantial increase in investment. A slight decrease was observed in 2023, falling to US$24.843 billion. However, 2024 witnessed a significant surge to US$53.267 billion, followed by a further substantial increase to US$96.496 billion in 2025. This indicates accelerating investment in property and equipment in the latter years of the period.
- Depreciation and Amortization Expense on Property and Equipment
- Depreciation and amortization expense experienced a minor decrease from US$10.653 billion in 2021 to US$9.876 billion in 2022. Subsequently, it increased to US$12.531 billion in 2023 and continued to rise to US$13.320 billion in 2024. The most significant increase occurred in 2025, reaching US$21.450 billion. This growth aligns with the increasing asset base resulting from the net additions to property and equipment.
- Segment Capital Expenditures to Depreciation
- The segment capital expenditures to depreciation ratio was 2.07 in 2021, increasing to 2.81 in 2022. A slight decrease to 1.98 was noted in 2023. The ratio then increased substantially to 4.00 in 2024 and further to 4.50 in 2025. This indicates that, particularly in the later years, capital expenditures are growing at a faster rate than depreciation expense. A higher ratio suggests more aggressive investment in new assets relative to the consumption of existing assets. The fluctuations suggest varying levels of investment intensity relative to the existing asset base.
In summary, the observed period demonstrates a trend of increasing capital investment, particularly in the final two years, outpacing the growth in depreciation expense. This suggests a strategic focus on expansion and modernization of assets within the segment.
Net sales
Amazon.com Inc., net sales by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 426,305) | 387,497) | 352,828) | 315,880) | 279,833) |
| International | 161,894) | 142,906) | 131,200) | 118,007) | 127,787) |
| AWS | 128,725) | 107,556) | 90,757) | 80,096) | 62,202) |
| Consolidated | 716,924) | 637,959) | 574,785) | 513,983) | 469,822) |
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).
Net sales demonstrate consistent growth across all reportable segments between 2021 and 2025. However, the rate of growth varies significantly by segment. North America consistently represents the largest portion of overall net sales and exhibits a steady, substantial increase throughout the period. International net sales experienced a decline between 2021 and 2022, but subsequently recovered and showed growth in subsequent years, though at a slower pace than North America. AWS demonstrates the most rapid percentage growth among the segments, consistently increasing its contribution to consolidated net sales.
- North America Segment
- Net sales for the North America segment increased from US$279.833 billion in 2021 to US$426.305 billion in 2025, representing a cumulative growth of approximately 52.2%. The segment’s growth appears relatively stable year-over-year, with incremental increases each period.
- International Segment
- The International segment experienced a decrease in net sales from US$127.787 billion in 2021 to US$118.007 billion in 2022. Following this decline, net sales increased to US$161.894 billion in 2025. While the segment recovered, its overall growth rate from 2022 to 2025 is lower than that of North America and AWS.
- AWS Segment
- AWS exhibited the most significant growth trajectory. Net sales increased from US$62.202 billion in 2021 to US$128.725 billion in 2025, representing a cumulative growth of over 106.9%. The segment’s growth rate remained consistently high throughout the period, indicating strong demand for its services.
- Consolidated Net Sales
- Consolidated net sales increased from US$469.822 billion in 2021 to US$716.924 billion in 2025, demonstrating an overall growth of approximately 52.4%. The consistent growth in consolidated net sales is driven by the performance of all three segments, with AWS contributing a proportionally larger share over time.
The relative contribution of each segment to consolidated net sales shifted during the period. While North America remains the dominant segment, AWS’s increasing net sales suggest a growing importance to overall company performance. The International segment’s recovery is positive, but its growth rate lags behind the other two segments.
Operating income (loss)
Amazon.com Inc., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 29,619) | 24,967) | 14,877) | (2,847) | 7,271) |
| International | 4,750) | 3,792) | (2,656) | (7,746) | (924) |
| AWS | 45,606) | 39,834) | 24,631) | 22,841) | 18,532) |
| Consolidated | 79,975) | 68,593) | 36,852) | 12,248) | 24,879) |
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).
Operating income exhibited significant fluctuations across reportable segments between 2021 and 2025. North America experienced a dramatic shift from profitability to substantial losses, followed by a strong recovery and subsequent growth. The International segment consistently underperformed relative to other segments, though it demonstrated improvement in later years. Amazon Web Services (AWS) maintained consistent profitability and exhibited robust growth throughout the period. Consolidated operating income mirrored the overall positive trend, benefiting significantly from AWS performance and the recovery in North America.
- North America Operating Income
- In 2021, North America generated US$7,271 million in operating income. This was followed by a considerable loss of US$2,847 million in 2022. A substantial recovery occurred in 2023, with operating income reaching US$14,877 million, continuing to grow to US$24,967 million in 2024 and further increasing to US$29,619 million in 2025. This indicates a period of operational challenges in 2022, followed by successful strategic adjustments and market recovery.
- International Operating Income
- The International segment reported an operating loss of US$924 million in 2021, which widened considerably to a loss of US$7,746 million in 2022. While still negative, the loss narrowed to US$2,656 million in 2023, and the segment achieved profitability in 2024 with US$3,792 million, increasing to US$4,750 million in 2025. This suggests ongoing efforts to improve international operations are yielding positive results, though the segment remains less profitable than North America or AWS.
- AWS Operating Income
- AWS demonstrated consistent and substantial operating income throughout the period. Operating income increased from US$18,532 million in 2021 to US$22,841 million in 2022, US$24,631 million in 2023, and continued to accelerate, reaching US$39,834 million in 2024 and US$45,606 million in 2025. This consistent growth highlights the strength and scalability of the AWS business.
- Consolidated Operating Income
- Consolidated operating income followed a pattern influenced by the performance of its segments. It decreased from US$24,879 million in 2021 to US$12,248 million in 2022, reflecting the challenges in North America and International segments. A significant rebound occurred in 2023, with operating income rising to US$36,852 million, and continued growth was observed in 2024 (US$68,593 million) and 2025 (US$79,975 million). The strong performance of AWS and the recovery in North America were key drivers of this consolidated growth.
The period under review demonstrates a volatile operating environment, particularly for the North America and International segments. However, the consistent strength of AWS and the eventual recovery of North America contributed to substantial growth in consolidated operating income by 2025.
Assets
Amazon.com Inc., assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 235,652) | 210,120) | 196,029) | 185,268) | 161,255) |
| International | 81,984) | 69,487) | 69,718) | 64,666) | 57,983) |
| AWS | 252,588) | 155,953) | 108,533) | 88,491) | 63,835) |
| Corporate | 247,818) | 189,334) | 153,574) | 124,250) | 137,476) |
| Consolidated | 818,042) | 624,894) | 527,854) | 462,675) | 420,549) |
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).
Total assets increased consistently over the five-year period, demonstrating substantial growth across all reportable segments. The rate of asset expansion, however, varied significantly between segments. A notable acceleration in asset growth is observed in the later years of the period, particularly for the AWS and Corporate segments.
- North America
- Assets in the North America segment exhibited steady growth, increasing from US$161.255 billion in 2021 to US$235.652 billion in 2025. While consistently positive, the growth rate appears to be moderating, with smaller increases observed between 2023 and 2025 compared to earlier periods.
- International
- The International segment experienced growth in assets from US$57.983 billion in 2021 to US$81.984 billion in 2025. Growth was relatively consistent between 2021 and 2023, but accelerated notably between 2023 and 2025. This suggests increased investment or expansion within international operations during that timeframe.
- AWS
- Assets within the AWS segment demonstrated the most significant proportional growth. Starting at US$63.835 billion in 2021, assets increased to US$252.588 billion by 2025. The growth rate accelerated substantially from 2022 onwards, indicating significant investment in infrastructure and capacity to support the expanding cloud services business. The increase between 2023 and 2024 was particularly pronounced.
- Corporate
- Corporate assets also showed considerable growth, rising from US$137.476 billion in 2021 to US$247.818 billion in 2025. A decrease was observed between 2021 and 2022, but the segment then experienced consistent and accelerating growth through 2025. This suggests increased corporate-level investments, potentially in areas such as research and development, or acquisitions.
- Consolidated
- Consolidated assets increased from US$420.549 billion in 2021 to US$818.042 billion in 2025, reflecting the combined growth of all segments. The rate of consolidated asset growth accelerated in the later years of the period, mirroring the trends observed in AWS and Corporate assets. This indicates a period of increased investment and expansion across the organization.
The increasing asset base, particularly within AWS and Corporate, suggests a strategic focus on long-term growth initiatives and expansion of core business capabilities. The consistent growth across all segments indicates a broad-based positive performance trend.
Net additions to property and equipment
Amazon.com Inc., net additions to property and equipment by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 35,919) | 24,348) | 17,529) | 23,682) | 37,397) |
| International | 7,617) | 6,643) | 4,144) | 6,711) | 10,259) |
| AWS | 96,496) | 53,267) | 24,843) | 27,755) | 22,047) |
| Corporate | 2,320) | 1,494) | 1,828) | 2,688) | 2,622) |
| Consolidated | 142,352) | 85,752) | 48,344) | 60,836) | 72,325) |
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).
Net additions to property and equipment exhibited varied trends across reportable segments between 2021 and 2025. Overall, consolidated net additions experienced significant fluctuation, with a notable increase in the later years of the period. A segment-by-segment analysis reveals distinct patterns in capital expenditure.
- North America
- Net additions to property and equipment in North America decreased from US$37,397 million in 2021 to US$17,529 million in 2023, representing a substantial decline. However, a recovery was observed in 2024 and 2025, reaching US$24,348 million and US$35,919 million respectively. This suggests a potential period of reduced investment followed by renewed expansion within the region.
- International
- The International segment demonstrated a consistent downward trend in net additions to property and equipment from 2021 to 2023, declining from US$10,259 million to US$4,144 million. A modest increase occurred in 2024 and 2025, reaching US$6,643 million and US$7,617 million, but remained below the 2021 level. This indicates a contraction in capital investment within the International segment, with limited recovery in the later years.
- AWS
- AWS exhibited a different pattern. While net additions increased from US$22,047 million in 2021 to US$27,755 million in 2022, they decreased to US$24,843 million in 2023. A significant surge occurred in 2024 and 2025, with net additions reaching US$53,267 million and US$96,496 million respectively. This substantial increase suggests a period of accelerated investment in AWS infrastructure, potentially driven by growing demand for cloud services.
- Corporate
- Net additions to property and equipment for the Corporate segment were relatively stable between 2021 and 2023, fluctuating between US$1,828 million and US$2,688 million. A decrease was observed in 2024 to US$1,494 million, followed by a recovery to US$2,320 million in 2025. These values represent a smaller proportion of overall capital expenditure compared to the other segments.
- Consolidated
- Consolidated net additions to property and equipment decreased from US$72,325 million in 2021 to US$48,344 million in 2023. A substantial increase was then observed in 2024 and 2025, reaching US$85,752 million and US$142,352 million respectively. This overall trend is largely driven by the significant investment in the AWS segment, with offsetting declines in North America and International segments during the earlier part of the period.
The fluctuations in net additions to property and equipment across segments suggest a dynamic capital allocation strategy. The substantial increase in consolidated figures in 2024 and 2025 is primarily attributable to increased investment in AWS, while other segments experienced varying degrees of investment reduction and subsequent recovery.
Depreciation and amortization expense on property and equipment
Amazon.com Inc., depreciation and amortization expense on property and equipment by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | 15,503) | 14,285) | 13,678) | 11,565) | 9,234) |
| International | 4,907) | 4,462) | 4,016) | 3,483) | 3,022) |
| AWS | 21,450) | 13,320) | 12,531) | 9,876) | 10,653) |
| Consolidated | 41,860) | 32,067) | 30,225) | 24,924) | 22,909) |
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).
Depreciation and amortization expense on property and equipment exhibited consistent growth across all reportable segments between 2021 and 2025. The Consolidated figure demonstrates a substantial increase over the five-year period, rising from US$22.909 billion to US$41.860 billion. This growth indicates increasing investment in property, plant, and equipment across the organization, and a corresponding recognition of asset consumption.
- North America
- The North America segment experienced a steady increase in depreciation and amortization expense, progressing from US$9.234 billion in 2021 to US$15.503 billion in 2025. This represents a cumulative growth of approximately 67.7%. The rate of increase appears relatively consistent year-over-year within this segment.
- International
- The International segment also showed growth, albeit at a slower pace than North America. Depreciation and amortization expense increased from US$3.022 billion in 2021 to US$4.907 billion in 2025, a cumulative increase of approximately 62.4%. The growth rate within the International segment remained relatively stable throughout the period.
- AWS
- The AWS segment displayed a more volatile pattern. While depreciation and amortization expense decreased from US$10.653 billion in 2021 to US$9.876 billion in 2022, it subsequently increased significantly, reaching US$21.450 billion in 2025. This represents a cumulative growth of over 100% from 2021 to 2025. The substantial increase in recent years suggests significant capital investment in AWS infrastructure.
- Consolidated Trends
- The Consolidated figures reflect the combined growth of all segments. The increase from US$24.924 billion in 2022 to US$32.067 billion in 2023, and then to US$41.860 billion in 2025, is particularly noteworthy. This accelerated growth in the later years is largely attributable to the substantial increase in AWS depreciation and amortization expense, alongside continued growth in the other segments.
Overall, the observed trends suggest a consistent pattern of capital investment and asset utilization across all segments. The accelerated growth in AWS depreciation and amortization expense warrants further investigation to understand the specific drivers of this increase and its potential impact on future profitability.