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SEATTLE — Amazon on Thursday reported strong sales and improved profits in its fiscal second quarter, but the company's stock price fell in after-hours trading after the company noted that sales and profits may fall somewhat in the third quarter.
The news was mostly quite good for the second quarter ended June 30. Net sales increased 10% to $148.0 billion in the quarter, compared with $134.4 billion in the second quarter 2023. Excluding the $1.0 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with second quarter 2023.
North America segment sales increased 9% year-over-year to $90.0 billion. International segment sales increased 7% year over year to $31.7 billion, or 10% excluding changes in foreign exchange rates. AWS segment sales increased 19% year-over-year to $26.3 billion.
Net income increased to $13.5 billion in the second quarter, or $1.26 per diluted share, compared with $6.7 billion, or $0.65 per diluted share, in second quarter 2023.
“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth,” Amazon president and CEO Andy Jassy said, adding that he believes AWS will continue to companies' top choice as they modernize their infrastructure and move to the cloud.
Looking ahead, Amazon's guidance for the third quarter calls for net sales of between $154.0 billion and $158.5 billion, representing growth of between 8% and 11% compared with last year's third quarter. Operating income is expected to be between $11.5 billion and $15.0 billion, compared with $11.2 billion in the third quarter of 2023.
Chief financial officer Brian Olsavsky said during a conference call with analysts that Americans distracted by news like the attempted assassination of Donald Trump and the Olympic Games could end up shopping and buying less. “It's a tough quarter to forecast,” he said.
