Amazon posted fourth-quarter net sales of $213.4 billion, a 14% increase year over year, and operating profit rose to $25 billion from $21.2 billion. Net income was $21.2 billion and included a $1.1 billion tax-dispute charge in Italy, $730 million in estimated severance costs and $610 million in asset impairments; operating income would have been $27.4 billion without those charges. Advertising revenue grew 17% to $21.3 billion, and subscription services net sales rose 14% to $13.1 billion. Earnings per diluted share were $1.95, slightly below expectations. The company announced plans for about $200 billion in capital expenditures for 2026 and additional job cuts.
"Advertising services revenue, which includes sales to sellers, vendors, publishers, authors and others through programs such as sponsored ads, display and video advertising, grew 17% to $21.3 billion. Meanwhile, net sales for its subscription services segment grew 14% to $13.1 billion during the quarter. The segment includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book and other non-Amazon Web Services subscription services."
"Here are the quarter's results: Net income: $21.2 billion, compared to $20 billion a year ago. The figure included a $1.1 billion charge related to resolving a tax dispute in its stores business in Italy, $730 million in estimated severance severance costs and $610 million in asset impairments primarily related to physical stores. Without these charges, operating income would have been $27.4 billion."
"Net sales: $213.4 billion , up 14% year over year, compared to $211.23 billion expected by analyst estimates compiled by Yahoo Finance. Earnings per share: $1.95 per diluted share, compared to $1.96 per share expected by analyst estimates compiled by Yahoo Finance. Last month, Amazon said it would cut 16,000 additional jobs following a previous round of layoffs in October that impacted 14,000 employees. The company recorded $730 million in estimated severance severance costs during the quarter."
#amazon-earnings #revenue-growth #layoffs-and-severance #capital-expenditures #advertising-and-subscriptions
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