Amazon reported its first-quarter financial results, revealing the slowest sales growth since the pandemic, with North American retail contributing significantly to this slowdown. Sales rose to $155.7 billion, a 9% increase from the previous year, while profits surged by 64% to $17.1 billion. The company warned of potential declines in operating profits due to economic uncertainties, including tariffs, and projected sales between $159 billion to $164 billion for the next quarter. CEO Andy Jassy emphasized efforts to mitigate tariff impacts by purchasing extra inventory and assisting marketplace sellers. The cloud computing segment continued to be a major profit driver, growing by 17% to $29.3 billion, despite capacity constraints at data centers, which Amazon is addressing through increased capital expenditures.

Amazon experienced its slowest sales growth since the pandemic, with North American retail showing particularly sluggish progress, although overall sales for January through March reached $155.7 billion, a 9% increase year-over-year, and profits surged by 64% to $17.1 billion.

The company warned investors of potential operating profit declines in the upcoming quarter, citing economic uncertainties such as tariffs and trade policies, projecting sales between $159 billion and $164 billion.

CEO Andy Jassy highlighted Amazon's focus on countering tariff effects by purchasing extra inventory ahead of time and supporting sellers on its marketplace, as the company grapples with the implications of President Trump's fluctuating tariff policies.

Investors speculated that consumers might have accelerated purchases in anticipation of future tariffs, potentially boosting spending during an otherwise uncertain economic period, although specific product categories were not disclosed.

Amazon's cloud computing segment, a major profit center, grew by 17% to $29.3 billion, but faced capacity limitations at its data centers, which the company is addressing by ramping up infrastructure investments, with over $24 billion spent on capital expenses in the first quarter.

Despite the mixed financial results, advertising revenue showed promise with an 18% increase to $13.9 billion, while Amazon's direct product sales and seller services grew by 5% and 6%, respectively.

Amazon's strategic investments include a plan to spend about $100 billion on capital expenditures in 2025 to enhance its infrastructure and support its growth ambitions in areas such as cloud computing and artificial intelligence.