Amazon has warned it might not hit market expectations on its operating income, over fears President Trump’s tariffs will impact its ecommerce operations.
The business saw sales rise 13.3% year on year to £126.9bn, surpassing Wall Street forecasts on revenues. Amazon Web Services revenues hit £23.4bn year on year, rising 17.5%.
Despite this, Amazon cautioned it might not meet expectations regarding its operating income. The ecommerce giant reported that it would earn between £11.74bn and £15.5bn, in contrast to expectations of around £14.6bn.
The figures come as the retailer faces investor uncertainty around Trump’s tariffs and how these would impact its reliance on global merchants within its ecommerce arm.
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In addition, Amazon has been heavily spending on AI, with CEO Andy Jassy noting that its AI investments had led it to be in a strong position long-term.
Jassy said: “Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I’m excited for what lies ahead.”
Last month, it was reported that Amazon was set to have more robots than human workers in its warehouses for the first time, as it ramped up its use of automation and AI.
The brand currently operates over 1 million robots globally, marking a fivefold increase since 2020, including mechanical arms and wheeled transporters.
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