Amazon.com Inc. reported a robust first-quarter performance for 2025, with revenue increasing by 9% to $155.7 billion, surpassing market expectations. The company's net income rose significantly to $17.1 billion, or $1.59 per share, from $10.4 billion, or $0.98 per share, the previous year. This growth was driven by a 17% year-over-year increase in Amazon Web Services (AWS) revenue, reaching $29.3 billion, although it fell slightly short of the anticipated $29.42 billion. AWS's operating margin improved to 39%, while the company's overall operating margin was 12% and gross margin was 51%. Despite the strong first-quarter results, Amazon issued a cautious outlook for the second quarter, projecting sales between $159 billion and $164 billion, and operating income between $13 billion and $17.5 billion. This guidance reflects concerns over potential impacts from tariffs and trade policies, which could affect future earnings. CEO Andy Jassy noted that while tariffs have not yet significantly impacted demand or pricing, there has been some heightened buying in certain categories, possibly as a precaution against future tariff effects. Amazon's operating cash flow for the trailing 12 months was $114 billion, with free cash flow at $26 billion, despite a significant increase in capital expenditures to $88 billion. Amazon's advertising business also saw significant growth, with a 19% increase in revenue to $13.92 billion, surpassing estimates and solidifying its position as a major player in digital advertising. However, the company's third-party seller services experienced a slowdown, growing only 6% year-over-year, amid higher costs and uncertainty related to tariffs. North America sales grew to $92.9 billion, and international sales reached $33.5 billion. Amazon's AI business continues to grow, though it faces supply constraints, and the company is also investing in its Kuiper satellite project, which may impact future profits. Amazon's shares fell more than 4% in after-hours trading and are down 13% year-to-date, reflecting investor concerns over tariffs on China and currency headwinds.