How does Amazon (AMZN) make money?

Amazon (AMZN) generates revenue primarily from Online Stores, which accounted for 37.2% of total revenue in TTM through Q1 2026. The company reported $743B in revenue and converted 12.2% of it into net profit, equivalent to roughly $90.8B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Amazon (AMZN)?

Amazon (AMZN) reported a gross profit margin of 50.6% in TTM through Q1 2026, equivalent to $376B in gross profit on $743B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Amazon (AMZN)?

Amazon (AMZN) reported an operating profit margin of 11.5% in TTM through Q1 2026, equivalent to $85.4B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Amazon (AMZN)?

Amazon (AMZN) reported a net profit margin of 12.2% in TTM through Q1 2026, equivalent to $90.8B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Amazon (AMZN) profitable?

Yes. Amazon (AMZN) reported $90.8B in net income for TTM through Q1 2026, with a net profit margin of 12.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Amazon (AMZN) invest in research and development?

Amazon (AMZN) invested $115B in research and development during TTM through Q1 2026, roughly 15.5% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Amazon (AMZN) spend on capital expenditures?

Amazon (AMZN) spent $151B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 20.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Amazon (AMZN) generate?

Amazon (AMZN) generated -$2.47B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of -0.3%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Amazon (AMZN)?

Amazon (AMZN) had an effective tax rate of 21% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Amazon (AMZN)?

Amazon (AMZN) reports revenue across 7 reportable product segments, led by Online Stores at 37.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Amazon (AMZN) generate most of its revenue?

North America Segment is the largest geographic market for Amazon (AMZN), accounting for 58.9% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Amazon Makes Money: 2026 Visual Revenue Map

Amazon (AMZN) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 30, 2026).

Amazon (AMZN) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Amazon (AMZN), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Online Stores	$276B	37.2%
Seller Services	$177B	23.9%
AWS	$137B	18.5%
Ads	$72B	9.7%
Subscriptions	$51.3B	6.9%
Physical Stores	$22.8B	3.1%
Other Services	$6.27B	0.8%
Total	$743B	100%

Online Stores$276B
Seller Services$177B
AWS$137B
Ads$72B
Subscriptions$51.3B
Physical Stores$22.8B
Other Services$6.27B
Total$743B

Amazon (AMZN) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Amazon (AMZN), TTM through Q1 2026
Region	Revenue (USD)	% of total
North America Segment	$438B	58.9%
International Segment	$168B	22.6%
Amazon Web Services Segment	$137B	18.5%
Total	$743B	100%

North America Segment
International Segment
Amazon Web Services Segment
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Amazon (AMZN) reports revenue across 7 reportable product segments; the largest segment was Online Stores at 37.2%, followed by Seller Services (23.9%) and AWS (18.5%). Geographically, North America Segment accounted for 58.9% of revenue, followed by International Segment (22.6%) and Amazon Web Services Segment (18.5%).

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