Amazon tops Q1 expectations with $17.1B profit, warns of tariff risks ahead

Amazon exceeded Wall Street’s revenue and profit expectations for the first quarter — but added a new warning about the potential future impact of tariff and trade policies on its future financial guidance.

The company posted sales of $155.8 billion, up 9%, and profits of $17.1 billion, or $1.59 billion a share. That topped expectations of $155.1 billion in revenue and earnings of $1.36 per share among analysts polled in advance.

Amazon Web Services revenue rose $16.9% to $29.3 billion, taking its annual revenue run rate to a record $117 billion but registering its lowest year-over-year quarterly growth rate in more than a year.

In a section introducing the company’s second quarter guidance, Amazon added “tariff and trade policies” to a list of factors that create uncertainty in its results, joining existing risks such as inflation, interest rates, and regional labor market constraints. That tariff risk was not mentioned in its fourth quarter results.

Looking ahead to the second quarter, Amazon projects revenue between $159 billion and $164 billion, representing 7% to 11% growth compared to the same period last year.

Amazon expects second-quarter operating income between $13 billion and $17.5 billion, compared with $14.7 billion in the second quarter of last year.

Investors and analysts will be listening closely for additional about the impact of tariffs on the company’s business during Amazon’s earnings call, which starts at 2:30 p.m. Pacific.

Developing story, more to come.