Yes, but thinly. In 2025 Amazon’s North America and International segments earned $34.4B of operating income on $588.2B of sales (a 5.8% margin), while AWS earned $45.6B on $128.7B (35%).
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
A 3-minute explainer of Amazon's business model and latest numbers, built from its SEC filings. Analysis by The Business Engineer.
This trend started in Q3 2022; Amazon would have posted an operating loss of almost $2.9 billion without AWS’s contribution to the overall operating income of $2.5 billion.
And it was confirmed by the end of 2022, as Amazon posted a $2.7 billion net loss, nonetheless AWS contribution to Amazon’s profitability.
In the meantime, AWS keeps growing at staggering rate.
Online stores are still Amazon's biggest line, but ads grew 22% to $69B in 2025. Source: Amazonquarterly earnings releases (Form 8-K, SEC EDGAR); full-year = sum of four quarters (ties to Form 10-K). Growth calculated. Analysis by The Business Engineer.
Amazon's revenue reached $717B in 2025, 5.3x its 2016 level. Source: AmazonForm 10-K filings via SEC EDGAR XBRL company facts. Analysis by The Business Engineer.
Amazon's mission in one loop: selection, low prices and convenience, all aimed at the customer. Source: Framework: FourWeekMBA / The Business Engineer, based on Amazon's shareholder letters. Analysis by The Business Engineer.
Working backwards: Amazon writes the press release before it builds the product. Source: Framework: FourWeekMBA / The Business Engineer, based on Amazon's described PR/FAQ process. Analysis by The Business Engineer.
Amazon's flywheel: lower prices bring traffic, traffic brings sellers, sellers bring selection. Source: Concept framework: Amazon's flywheel as described by Jeff Bezos; FourWeekMBA / The Business Engineer. Figures: Amazon Q2 2026 earnings release (SEC). Analysis by The Business Engineer.
AWS made about 18% of Amazon’s 2025 sales but about 57% of its operating income. Without it, Amazon would still be profitable, but it would look like a large retailer with a single-digit margin.
The retail side has improved fast. In Q2 2026, North America and International earned $10.8B on $158.4B of sales, a 6.8% margin, helped by advertising ($19.8B in the quarter), which is booked inside these segments, and by a more regional delivery network.
AWS made 18% of Amazon's 2025 sales but 57% of its operating income. Source: Amazonquarterly earnings releases (Form 8-K, SEC EDGAR); full-year 2025 = sum of four quarters (ties to Form 10-K net sales). Shares calculated. Analysis by The Business Engineer.
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More on Is Amazon Profitable Without AWS? and its peers
Source: Amazon Form 10-K (SEC EDGAR). Correction (10 Oct 2026): this box replaces an older card with outdated figures.
** Amazon's non-AWS business generated $353.4 billion in trailing twelve-month revenue through Q3 2024, with strong growth across retail segments and particularly robust advertising revenuegrowth of 19% year-over-year. The core retail and advertising operations showed improved profitability with operating income increasing 56% compared to the prior year period.
Amazon was not profitable once AWS was removed in 2022. In fact, Amazon, without AWS, generated $10.6 billion in operating losses. While Amazon, without AWS, generated $12.2. billion operating income.
AWS grew 37% to $42.2B in Q2 2026, with $16.6B of operating income. Source: Amazonquarterly earnings releases (Form 8-K, SEC EDGAR). Analysis by The Business Engineer.
Frequently asked questions
Is Amazon profitable without AWS?
Yes. North America and International earned $34.4B of operating income in 2025 (Amazon Form 10-K).
How much of Amazon’s profit comes from AWS?
About 57% of 2025 operating income: $45.6B of $80.0B.
What is Amazon’s retail margin?
About 5.8% in 2025 and 6.8% in Q2 2026 (operating income รท segment sales, calculated).
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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