Amazon (AMZN) reported its first quarter earnings after the bell on Thursday, beating on the top and bottom lines, but offered lighter-than-anticipated guidance for its Q2 operating income.
For the quarter, Amazon saw earnings per share (EPS) of $1.59 on revenue of $155.7 billion. Wall Street was anticipating EPS of $1.36 and revenue of $155.1 billion, according to Bloomberg consensus estimates. The company reported EPS of $0.98 and revenue of $143.3 billion in Q1 last year.
AWS revenue came in at $29.3 billion inline with expectations.
For the second quarter, Amazon said it anticipates operating income of between $13 billion and $17.5 billion. Analysts were expecting $17.8 billion. The company saw operating income of $14.7 billion in Q2 2024.
The company also said it anticipates a 10-basis-point impact to its Q2 sales.
Amazon stock fell more than 4% following the report.
Amazon’s announcement comes after a dustup with the Trump White House on Tuesday over a Punchbowl News report that the company was preparing to include the impact of tariffs on product prices.
White House press secretary Karoline Leavitt called the move “a hostile and political act,” and CNN White House reporter Alayna Treene said President Trump personally called Bezos to complain about the plan.
Amazon has since denied that it was going to add tariff pricing to its main e-commerce site.
“The team that runs our ultra-low cost Amazon Haul store considered the idea of listing import charges on certain products,” Amazon spokesperson Tim Doyle said in a statement. “This was never approved and is not going to happen.”
During a Tuesday afternoon briefing, Trump commented on the matter, saying, “Jeff Bezos is very nice. Terrific. He solved the problem very quickly. He did the right thing. Good guy.”
The episode highlights the precarious position tech companies face as they work to navigate the reality of Trump’s tariffs and the threat of possible reprisals from the White House.
Read more: The latest news and updates on Trump’s tariffs
With goods imported from China facing a 145% tariff and other countries facing a blanket 10% tariff, UBS analyst Stephen Ju estimated in an investor note that some 50% or more of products sold on Amazon will face some kind of tariff-related price increase.
“Consumers therefore might have to make more difficult choices on where to allocate their dollars,” Ju wrote.
“We also have to think that there could be second order impacts as exporters to the US are likely going to face lower revenue and as a result may have to make adjustments to their business/headcount needs, which may impact employment globally and downstream [gross merchandise value] growth internationally as well,” Ju added.
