Amazon’s Impressive Q1 Earnings Results Overshadowed by Tariff Concerns

Despite looming tariffs and consumer nervousness about the economy, Amazon continues to impress investors and analysts. The e-commerce giant recently released first-quarter earnings, and the numbers were better than expected.

For the three-month period that ended on March 31, Amazon’s revenue reached $155.67 billion, crushing Q1 2024’s $143.3 billion. Analysts were expecting around $155.1 billion.

Net income rose to $17.1 billion in the quarter from $10.4 billion in the same period last year. Operating income was $18.4 billion, up from $15.3 billion.

“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences,” said CEO Andy Jassy in the earnings report.

As far as the current quarter, Amazon anticipates revenue of $159 billion to $164 billion. Operating income will land between $13 billion and $17.5 billion.

Amazon’s guidance was influenced by doubts related to the current tariff policy. The ranges were much wider than typical.

“We generally have a wide range, but just the general uncertainty that we’re seeing and uncertainty of consumer demand and everything else is causing us to increase the range a bit,” said CFO Brian Olsavsky, per NBC. “So, we’ll see.”

Impact of Tariffs on Amazon

Speaking on a conference call, Jassy offered some reassurance related to the potential impact of tariffs. Amazon is working hard to mitigate any potential disruptions and has implemented strategies to keep prices in check, the executive explained.

Jassy praised Amazon’s current efforts to weather the storm and reminded investors that the company has faced challenges before. Using the COVID-19 pandemic as an example, the retailer’s leader spoke about how customers could find everything they wanted at a low price. While physical retailers saw traffic decrease due to lockdowns, Amazon was able to provide both the essentials and non-essentials that customers needed.

According to Jassy, these “uncertain eras” have even helped Amazon become a stronger company. However, the executive toned down the optimism by noting that the current tariff environment still remains uncertain.

“It’s hard to tell what’s going to happen with tariffs right now,” he told investors, per NBC. “It’s hard to tell where they’re going to settle and when they’re going to settle.”

Earlier this week, reports surfaced about Amazon pressuring sellers to decrease prices. Instead of passing on tariff fees to consumers and raising the retail price, it appears the retail giant may be asking sellers to absorb any additional fees applied at the border.