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Acquired / Case file

Amazon

Financials

What the filings say

Amazon's annual statements as filed with the SEC, read backwards: from the reported figures to what the business did, to whether it will persist. Every number links to the filing it came from.

19 fiscal years2007–2025 on fileAMZN ticker

FY2025 · period ending 2025-12-31

$716.9B

Revenue

50.3%

Gross margin (computed)

11.2%

Operating margin

22.3%

Return on equity

Changes in the reported figures

Revenue increased 12.4% between FY2024 and FY2025. Operating margin changed by 0.4 percentage points, from 10.8% to 11.2%.

Operating cash flow less reported capital expenditures was $7.7B in FY2025. This calculation excludes acquisitions and financing flows.

Reported financial changes between FY2024 · 2024-12-31 and FY2025 · 2025-12-31
MeasureFY2024 · 2024-12-31FY2025 · 2025-12-31Change
Revenue$638.0B$716.9B$79.0B
Operating margin10.8%11.2%0.4 pp
Net income$59.2B$77.7B$18.4B
Operating cash flow$115.9B$139.5B$23.6B
Capital expenditures$83.0B$131.8B$48.8B

Calculated from the filing snapshot; changes in accounting, acquisitions, or reporting scope can affect comparisons. Currency: USD.

The lens

Amazon's gross margin has climbed for a decade. Is that pricing power, or is it the accounting of a marketplace replacing the accounting of a store?

Amazon sells the same box two ways. When it owns the inventory ("Online stores"), the full $20 sale is revenue and the $10 the box cost is cost of sales; the $2 of credit-card and delivery expense lands in a separate line, Fulfillment. When a third party owns the inventory and Amazon only provides the marketplace ("Third-party seller services"), revenue is the $10 fee, cost of sales is zero, and the $2 of fulfillment is still spent. Each path leaves $8. One reports a 50% gross margin; the other reports 100%.

That is not a hypothetical. In the FY2025 10-K, product sales (where cost of sales lives) fell from 44.5% of net sales in FY2023 to 41.3% in FY2025, while service sales (marketplace fees, AWS, advertising, subscriptions) rose to 58.7%. Over the same two years headline gross margin went from 47.0% to 50.3%. Third-party seller services grew 22.9%; online stores grew 16.1%. The faster-growing line is the one that carries no cost of sales, so the consolidated margin rises even if nothing about Amazon's pricing changed.

The cost that actually moves with the box, Fulfillment, sits below gross profit at roughly 15% of sales in every one of the three years. Read gross margin after fulfillment and the level drops by a third, though the direction holds: 31.2% to 35.1%. Which is the Financial Statement Analysis habit the course opens with: before comparing a margin across companies or across years, read Note 1 for what the company puts in cost of sales, then map each revenue line to the cost lines it drags with it.

“The two routes to the same eight dollars of profit land in the statements as a 50% gross margin and a 100% gross margin, which is why a rising consolidated margin at Amazon has to be checked against the revenue mix before it is read as pricing power.”

Paraphrased from the course's opening case · Financial Statement Analysis, Booth 30130-81, course introduction, 2026-09-30

From the filing

Consolidated statement of operations, the six cost lines

USD millions

FY2023FY2024FY2025
Total net sales574,785637,959716,924
Cost of sales304,739326,288356,414
Fulfillment90,61998,505109,074
Technology and infrastructure85,62288,544108,521
Sales and marketing44,37043,90747,129
General and administrative11,81611,35911,172
Other operating expense (income), net7677634,639
Operating income36,85268,59379,975
Net income30,42559,24877,670

10-K · R4 · Consolidated Statements of Operations · accession 0001018724-26-000004

Amazon reports no gross profit line. Gross margin on this page is computed as (net sales minus cost of sales) over net sales; fulfillment is deliberately not in cost of sales, which is the whole point.

Net sales by group of similar products and services

USD millions

FY2023FY2024FY2025
Online stores231,872247,029269,287
Physical stores20,03021,21522,561
Third-party seller services140,053156,146172,162
Advertising services46,90656,21468,635
Subscription services40,20944,37449,619
AWS90,757107,556128,725
Other4,9585,4255,935

10-K · R19 · Segment Information, disaggregation of revenue · accession 0001018724-26-000004

Online stores carry inventory, so their sales bring cost of sales with them. Third-party seller services are fees on someone else's inventory: fulfillment cost, no cost of sales.

Product sales against service sales

USD millions

FY2023FY2024FY2025
Net product sales255,887272,311296,266
Net service sales318,898365,648420,658
Product share of net sales (%)44.5%42.7%41.3%
Gross margin, headline (%)47.0%48.9%50.3%
Gross margin after fulfillment (%)31.2%33.4%35.1%

10-K · R4 · Consolidated Statements of Operations (product and service split) · accession 0001018724-26-000004

Shares and margins are computed from the two tables above. Every percentage point of mix that moves from product to service lifts headline gross margin with no change in what a customer paid or what a box cost.

Read authored 2026-10-01 from Amazon FY2025 Form 10-K (accession 0001018724-26-000004, pages R4 and R19), with the framing from the Booth Financial Statement Analysis course introduction of 2026-09-30.

Where it sits among the set

Different business models and fiscal years; these positions are not a like-for-like performance ranking.

Gross margin0%50%100%Apple · FY2025 · Gross margin 47%Alphabet · FY2025 · Gross margin 60%Costco · FY2026 · Gross margin 13%The Home Depot · FY2025 · Gross margin 33%Intel · FY2025 · Gross margin 35%Lockheed Martin · FY2025 · Gross margin 10%Meta · FY2025 · Gross margin 82%Microsoft · FY2026 · Gross margin 68%Netflix · FY2025 · Gross margin 48%NVIDIA · FY2026 · Gross margin 71%Qualcomm · FY2025 · Gross margin 55%Tesla · FY2025 · Gross margin 18%Shopify · FY2025 · Gross margin 48%Spotify · FY2025 · Gross margin 32%Ferrari · FY2025 · Gross margin 52%TSMC · FY2024 · Gross margin 56%Virgin Galactic · FY2025 · Gross margin -4613% (beyond the scale, pinned at the edge)Amazon · FY2025 · Gross margin 50% · 8 of 1850% · 8 of 18Operating margin0%35%70%Apple · FY2025 · Operating margin 32%Alphabet · FY2025 · Operating margin 32%Costco · FY2026 · Operating margin 4%The Home Depot · FY2025 · Operating margin 13%Disney · FY2025 · Operating margin 19%Intel · FY2025 · Operating margin -4%Lockheed Martin · FY2025 · Operating margin 10%Meta · FY2025 · Operating margin 41%Microsoft · FY2026 · Operating margin 47%Netflix · FY2025 · Operating margin 29%NVIDIA · FY2026 · Operating margin 60%Qualcomm · FY2025 · Operating margin 28%Tesla · FY2025 · Operating margin 5%Visa · FY2025 · Operating margin 60%Shopify · FY2025 · Operating margin 13%Spotify · FY2025 · Operating margin 13%Ferrari · FY2025 · Operating margin 30%TSMC · FY2024 · Operating margin 46%Formula 1 · FY2025 · Operating margin 13%Virgin Galactic · FY2025 · Operating margin -18481% (beyond the scale, pinned at the edge)Amazon · FY2025 · Operating margin 11% · 16 of 2111% · 16 of 21Return on equity0%50%100%150%Apple · FY2025 · Return on equity 171%Alphabet · FY2025 · Return on equity 36%Berkshire Hathaway · FY2025 · Return on equity 10%Costco · FY2026 · Return on equity 28%The Home Depot · FY2025 · Return on equity 146%Disney · FY2025 · Return on equity 12%Intel · FY2025 · Return on equity -0%JPMorgan Chase · FY2025 · Return on equity 16%Lockheed Martin · FY2025 · Return on equity 77%Meta · FY2025 · Return on equity 30%Microsoft · FY2026 · Return on equity 34%Netflix · FY2025 · Return on equity 43%NVIDIA · FY2026 · Return on equity 101%Qualcomm · FY2025 · Return on equity 23%Tesla · FY2025 · Return on equity 5%Visa · FY2025 · Return on equity 52%Shopify · FY2025 · Return on equity 10%Spotify · FY2025 · Return on equity 32%Ferrari · FY2025 · Return on equity 43%TSMC · FY2024 · Return on equity 30%Formula 1 · FY2025 · Return on equity 8%Virgin Galactic · FY2025 · Return on equity -94% (beyond the scale, pinned at the edge)Amazon · FY2025 · Return on equity 22% · 15 of 2322% · 15 of 23Asset turnover0.0×1.0×2.0×3.0×Apple · FY2025 · Asset turnover 1.1×Alphabet · FY2025 · Asset turnover 0.8×Berkshire Hathaway · FY2025 · Asset turnover 0.3×Costco · FY2026 · Asset turnover 3.6× (beyond the scale, pinned at the edge)The Home Depot · FY2025 · Asset turnover 1.6×Disney · FY2025 · Asset turnover 0.5×Intel · FY2025 · Asset turnover 0.3×JPMorgan Chase · FY2025 · Asset turnover 0.0×Lockheed Martin · FY2025 · Asset turnover 1.3×Meta · FY2025 · Asset turnover 0.6×Microsoft · FY2026 · Asset turnover 0.5×Netflix · FY2025 · Asset turnover 0.8×NVIDIA · FY2026 · Asset turnover 1.4×Qualcomm · FY2025 · Asset turnover 0.8×Tesla · FY2025 · Asset turnover 0.7×Visa · FY2025 · Asset turnover 0.4×Shopify · FY2025 · Asset turnover 0.8×Spotify · FY2025 · Asset turnover 1.3×Ferrari · FY2025 · Asset turnover 0.7×TSMC · FY2024 · Asset turnover 0.5×Formula 1 · FY2025 · Asset turnover 0.3×Virgin Galactic · FY2025 · Asset turnover 0.0×Amazon · FY2025 · Asset turnover 1.0× · 7 of 231.0× · 7 of 23
Each dot is one SEC-filing company in the Acquired set at its latest fiscal year on file; the large dot is Amazon, ranked from the top. Banks, insurers, and card networks report no cost of revenue, so they have no dot on the margin rows. A value past the end of a scale is pinned at the edge and says so on hover.

The shape of a revenue dollar

0%25%50%75%100%FY2018 · Cost of revenue: 59.8% of revenueFY2018 · Other operating costs: 34.9% of revenueFY2018 · Operating income: 5.3% of revenueFY2018 · Net margin: 4.3%FY2018$232.9BFY2019 · Cost of revenue: 59.0% of revenueFY2019 · Other operating costs: 35.8% of revenueFY2019 · Operating income: 5.2% of revenueFY2019 · Net margin: 4.1%FY2019$280.5BFY2020 · Cost of revenue: 60.4% of revenueFY2020 · Other operating costs: 33.6% of revenueFY2020 · Operating income: 5.9% of revenueFY2020 · Net margin: 5.5%FY2020$386.1BFY2021 · Cost of revenue: 58.0% of revenueFY2021 · Other operating costs: 36.7% of revenueFY2021 · Operating income: 5.3% of revenueFY2021 · Net margin: 7.1%FY2021$469.8BFY2022 · Cost of revenue: 56.2% of revenueFY2022 · Other operating costs: 41.4% of revenueFY2022 · Operating income: 2.4% of revenueFY2022 · Net margin: -0.5%FY2022$514.0BFY2023 · Cost of revenue: 53.0% of revenueFY2023 · Other operating costs: 40.6% of revenueFY2023 · Operating income: 6.4% of revenueFY2023 · Net margin: 5.3%FY2023$574.8BFY2024 · Cost of revenue: 51.1% of revenueFY2024 · Other operating costs: 38.1% of revenueFY2024 · Operating income: 10.8% of revenueFY2024 · Net margin: 9.3%FY2024$638.0BFY2025 · Cost of revenue: 49.7% of revenueFY2025 · Other operating costs: 39.1% of revenueFY2025 · Operating income: 11.2% of revenueFY2025 · Net margin: 10.8%FY2025$716.9B
Cost of revenueOther operating costsOperating incomeNet margin
Each column is one fiscal year scaled to 100% of revenue, so the shape is comparable even as revenue grows. The bottom band is what survives as operating income; the line is net margin after interest and tax.

Return on equity, taken apart

ROE is net margin times asset turnover times leverage. The three shaded rows multiply to the row below them, so a change in ROE can be traced to pricing and cost (margin), to how hard the asset base works (turnover), or to how much of it is financed by debt (leverage). Averages use the prior year-end balance, so the first year on file has no ratio.

FY2021FY2022FY2023FY2024FY2025
Revenue$469.8B$514.0B$574.8B$638.0B$716.9B
Revenue growth21.7%9.4%11.8%11.0%12.4%
Net income$33.4B−$2.7B$30.4B$59.2B$77.7B
Net margin7.1%-0.5%5.3%9.3%10.8%
× Asset turnover1.27×1.16×1.16×1.11×0.99×
× Leverage (assets / equity)3.20×3.11×2.85×2.36×2.07×
= Return on equity28.8%-1.9%17.5%24.3%22.3%
Return on assets9.0%-0.6%6.1%10.3%10.8%
Capex / revenue13.0%12.4%9.2%13.0%18.4%
Operating cash flow / net income1.39×-17.18×2.79×1.96×1.80×

Operating cash flow over net income above 1× means earnings are arriving as cash; well below 1× for several years is the first place to look for earnings that are not. Capex over revenue is how much of each sales dollar goes back into the asset base.

Filing sources and accounting concepts

Provenance

Pulled from the SEC’s XBRL company-facts API. Each line below is the standardized concept that fed it; when a company changed concepts across years (a revenue standard change, a capex relabel), every alias used is listed. Missing concepts are blank, never zero. Values are as reported in the most recently filed annual report covering each period, so restated comparatives win.

Fiscal yearPeriod endFormFiledFiling
FY20252025-12-3110-K2026-02-060001018724-26-000004
FY20242024-12-3110-K2026-02-060001018724-26-000004
FY20232023-12-3110-K2026-02-060001018724-26-000004
FY20222022-12-3110-K2025-02-070001018724-25-000004
FY20212021-12-3110-K2024-02-020001018724-24-000008
revenue
RevenueFromContractWithCustomerExcludingAssessedTax · SalesRevenueNet
cost of revenue
CostOfGoodsAndServicesSold
gross profit
GrossProfit
operating income
OperatingIncomeLoss
net income
NetIncomeLoss
total assets
Assets
total equity
StockholdersEquity
operating cash flow
NetCashProvidedByUsedInOperatingActivities
capital expenditures
PaymentsToAcquirePropertyPlantAndEquipment · PaymentsToAcquireProductiveAssets

AMAZON COM INC · CIK 0001018724 · us-gaap · snapshot 2026-10-08