Here is a summary and discussion of Amazon’s income statement performance for the five fiscal years from 2021 to 2025, followed by an analysis of the most recent five quarters (Q1 2025 through Q1 2026). All figures are in USD millions.
Five-Year Annual Performance (2021–2025)
Over the past five years, Amazon has demonstrated remarkable top-line and bottom-line growth, driven by sustained e‑commerce expansion, strong cloud computing (AWS) performance, and growing advertising and subscription revenues. Total net sales increased from $469,822 million in 2021 to $716,924 million in 2025, representing a cumulative increase of 52.6%. Annual revenue growth remained consistently in double digits, ranging from 9.4% in 2022 to 12.4% in 2025, highlighting Amazon’s ability to scale even from a very large base.
Profitability improved even more dramatically. Gross profit rose from $197,478 million in 2021 to $360,510 million in 2025, with the gross profit margin expanding from 42.0% to 50.3% over the same period. This margin expansion reflects a revenue mix shift toward higher‑margin businesses such as cloud computing, digital advertising, and third‑party seller services, as well as operational efficiency gains in fulfillment and logistics.
Operating income (EBIT) fluctuated significantly, from $24,941 million in 2021 down to $13,511 million in 2022 (partly due to unusual expense items and a weaker e‑commerce environment), then rebounded sharply to $37,619 million in 2023 and $69,356 million in 2024, before reaching $84,614 million in 2025. The 2025 EBIT includes $2,908 million of unusual expenses, yet still grew 22% year‑over‑year, underscoring the underlying earnings power.
Net income followed a similar but more volatile path. After a loss of $2,722 million in 2022 (driven by mark‑to‑market losses from equity investments and operational pressures), net income recovered strongly: $30,425 million in 2023, $59,248 million in 2024, and $77,670 million in 2025. Diluted earnings per share (EPS) moved from $3.24 in 2021 to a negative $0.27 in 2022, then soared to $2.90, $5.53, and $7.17 in subsequent years. The 2025 net margin of 10.8% demonstrates Amazon’s transition from a low‑margin retailer to a high‑margin technology and services company.
EBITDA (earnings before interest, taxes, depreciation, and amortization) grew from $59,237 million in 2021 to $150,370 million in 2025, with EBITDA margin expanding from 12.6% to 21.0%. Depreciation and amortization expense increased significantly, reflecting heavy capital investment in fulfillment centers, data centers, and equipment, but operating leverage has more than offset these costs.
Latest Five Quarters (Q1 2025 – Q1 2026)
The quarterly data provides a more granular view of Amazon’s recent momentum, including the first quarter of 2026. Sales growth has been somewhat uneven but consistently positive. Starting with Q1 2025 at $155,667 million, revenue rose to $167,702 million in Q2 (+7.7% QoQ), $180,169 million in Q3 (+7.4% QoQ), and peaked at $213,386 million in Q4 2025 (+18.4% QoQ), reflecting the seasonal holiday surge. In Q1 2026, sales were $181,519 million, down 14.9% from Q4 2025 but up 16.6% year‑over‑year compared to Q1 2025, indicating a strong underlying trend.
Gross profit margins remained robust, hovering around 50% or slightly higher each quarter. In Q1 2026, gross profit was $94,056 million, representing a margin of 51.8%, an improvement from the 50.5% margin in Q1 2025.
Operating leverage is clearly visible in net income. Quarterly net income grew from $17,127 million in Q1 2025 to $18,164 million in Q2 (+6.1% QoQ), $21,187 million in Q3 (+16.6% QoQ), $21,192 million in Q4 (flat sequentially), and then jumped to $30,255 million in Q1 2026 (+42.8% QoQ and +76.6% year‑over‑year). The dramatic increase in Q1 2026 net income, despite a seasonal revenue dip, suggests a favorable mix shift, cost controls, or lower unusual expenses compared to previous quarters.
Diluted EPS followed the same pattern: $1.59 in Q1 2025, $1.68 in Q2, $1.95 in Q3, $1.95 in Q4, and $2.78 in Q1 2026. The year‑over‑year EPS growth from Q1 2025 to Q1 2026 was 74.8%, far exceeding the revenue growth of 16.6%, driven by margin expansion and potentially a lower effective tax rate (income tax in Q1 2026 was $9,560 million on pretax income of $39,834 million, an effective rate of 24.0%, compared to 21.0% in Q1 2025).
EBITDA in the latest quarter was $43,244 million, down 5.4% from Q4 2025’s $45,705 million but up 31.1% year‑over‑year from Q1 2025’s $32,975 million. The sequential decline is typical after the holiday season, but the strong annual growth indicates that Amazon’s core profitability continues to improve.
Key Takeaways and Discussion
Consistent revenue growth – Amazon has successfully navigated post‑pandemic normalization, inflation, and competitive pressures, maintaining double‑digit annual growth. The quarterly data shows resilience, with Q1 2026 delivering a sharp year‑over‑year increase.
Margin expansion is the primary value driver – Gross margin crossed 50% in 2025 and remained there in 2026. This is a structural shift, not a one‑time event, thanks to high‑margin segments (AWS, ads, subscriptions) growing faster than the core retail business. In the latest quarter, a 16.6% revenue increase translated into a 76.6% net income increase, demonstrating powerful operating leverage.
Profitability rebound after 2022 – The 2022 loss was an anomaly driven largely by non‑cash investment losses (in Rivian, etc.). Excluding that, Amazon’s earnings trajectory is strongly upward. The company has also controlled SG&A expenses: SG&A grew only 4.25% in 2024 and 13.9% in 2025, well below gross profit growth, indicating efficiency gains.
Seasonality and reinvestment – Q4 remains the strongest revenue quarter, but Q1 2026 shows that profitability can remain high even with lower sales, suggesting a higher proportion of subscription and cloud revenue, which are less seasonal. Depreciation continues to rise (from $34.3 billion in 2021 to $64.9 billion in 2025), reflecting massive capital expenditures. However, EBITDA growth comfortably outpaces depreciation, meaning cash earnings are growing even faster than net income.
Forward‑looking signals – The Q1 2026 results (ending March 31, 2026) are particularly encouraging. Net income of $30.3 billion annualizes to over $120 billion, implying a forward P/E multiple compression if sustained. Investors will watch whether this margin level persists into Q2 and Q3 2026. The company continues to invest in AI infrastructure and international expansion, but based on recent trends, those investments are not suppressing profitability.
In summary, Amazon has transformed from a low‑margin retailer into a high‑margin technology and services powerhouse. The last five years show consistent top‑line growth, but the story is really about profitability: gross margins up 800 basis points, net margins from negative to nearly 11%, and EPS growth of more than 120% over 2023–2025. The latest quarter suggests this momentum has carried into 2026, with net income rising far faster than revenue.
