Amazonsaid second-quarter revenue climbed 11%, and the company issued a forecast showing potential growth acceleration in the current period. The stock rose almost 7% in extended trading.
Earnings: 65 cents a share vs. 35 cents per share expected, according to analysts surveyed by Refinitiv
Revenue: $134.4 billion vs. $131.5 billion expected, according to analysts surveyed by Refinitiv
Wall Street is also watching other key numbers in the report:
Amazon Web Services: $22.1 billion vs. $21.8 billion in revenue, according to StreetAccount
Advertising: $10.7 billion vs. $10.4 billion in revenue, according to StreetAccount
related investing news
It was Amazon’s biggest earnings beat since its report for the fourth-quarter of 2020.
For the third quarter, Amazon expects sales of between $138 billion and $143 billion, or growth of between 9% and 13%. Analysts were expecting revenue of $138.25 billion, according to Refinitiv.
Amazon has returned to double-digit growth after expansion was mired in the single digits for five of the past six quarters. CEO Andy Jassy attributed some of the improvement to AWS, which had previously been seeing clients slow their spending due to economic uncertainty.
“Our AWS growth stabilized as customers started shifting from cost optimization to new workload deployment,” Jassy said in a statement.
Sales in Amazon’s cloud unit climbed 12% in the second quarter to $22.1 billion, above the $21.8 billion projected by Wall Street. Still, that marks a deceleration from the prior quarter, when sales expanded 16%.
AWS accounted for 70% of Amazon’s $7.7 billion in operating profit.
The company reported net income of $6.7 billion, or 65 cents a share, after recording a loss of $2 billion, or 20 cents a share, a year earlier. The year-ago loss was the result of a markdown on the company’s investment in electric vehicle company Rivian.
Amazon’s report, along with Apple‘s on Thursday, wraps up earnings season among the mega-cap tech companies. Apple’s results topped Wall Street expectations for both earnings and sales, driven by the services business.
While growth remains below historical standards for most of the group, results are starting to rebound after a tough 2022, and cost-cutting measures are bolstering profitability. Also, everyone is focused on artificial intelligence.
In its earnings release, Amazon said AI products from AWS are being used by numerous customers, and it named Royal Philips, 3M, Old Mutual and HSBC.
Advertising continues to be a booming business for Amazon, with quarterly revenue jumping 22% in the period to $10.7 billion. Google‘s ad revenue rose just 3.2% in the second quarter and Facebook’s rose 12%.
The C3.ai logo is seen near a computer motherboard in this illustration taken on Jan. 8, 2024.
Dado Ruvic | Reuters
Shares of the enterprise artificial intelligence company C3 AI fell 14% in extended trading on Wednesday after it announced fiscal first-quarter results and the appointment of Stephen Ehikian as its new CEO.
C3 AI reported $70.3 million in revenue for the quarter, down from $87.2 million during the same period last year. The company’s GAAP net loss widened to an 86-cent loss from a 50-cent loss a year ago.
Ehikian is a long-time tech executive who built two companies that were both acquired by Salesforce, C3 AI said. C3 AI said Ehikian assumed the new role on Sept. 1.
C3 AI kicked off a search for a new chief executive in July after its former CEO, Thomas Siebel revealed that he was diagnosed with an autoimmune disease earlier this year that resulted in “significant visual impairment.”
Read more CNBC tech news
“C3 AI is one of the most important companies in the AI landscape and enterprise software, with a platform and applications that are unmatched,” Ehikian said. “I am confident that we will be able to capture an increasing share of the immense market opportunity in Enterprise AI.”
The company has had a rocky few months since Siebel’s diagnosis.
Shares plunged in August after C3 AI announced disappointing preliminary financial results and a restructuring of its global sales and services organization.
Siebel said in an August statement that sales results during the quarter were “completely unacceptable.” He attributed the performance to the “disruptive effect” of the reorganization, as well as his ongoing health issues.
Marc Benioff, co-founder and CEO of Salesforce, sits for an interview in San Francisco on April 25, 2025.
David Paul Morris | Bloomberg | Getty Images
Salesforce issued disappointing guidance on Wednesday, even as earnings and revenue topped estimates for the fiscal second quarter. The stock dropped 4% in extended trading.
Here’s how the company did in comparison with LSEG consensus:
Earnings per share: $2.91 adjusted vs. $2.78 expected
Revenue: $10.24 billion vs. $10.14 billion expected
Revenue increased 10% from $9.33 billion a year earlier, according to a statement. Net income rose to $1.89 billion, or $1.96 per share, from $1.43 billion, or $1.47 per share, a year ago.
For the fiscal third quarter, management called for $2.84 to $2.86 in adjusted earnings per share on $10.24 billion to $10.29 billion in revenue. Analysts polled by LSEG had been looking for $2.85 per share on $10.29 billion in revenue.
Salesforce maintained its full-year revenue outlook but now sees higher earnings. The company is targeting $11.33 to $11.37 in adjusted earnings per share on $41.1 billion to $41.3 billion in revenue. The consensus estimate from LSEG was $11.31 in earnings per share and $41.2 billion in revenue. The forecast in May included $11.27 to $11.33 in adjusted earnings per share.
Salesforce has fallen out of favor on Wall Street this year due to an extended stretch of meager revenue growth, which has been stuck in the single digits since mid-2024. While the company regularly touts its investments in artificial intelligence and the advancements in its software and systems, it hasn’t been lifted by the AI boom in the same way as many of its tech peers.
Going into Wednesday’s report, Salesforce was down 23% for the year, lagging behind all but one stock in the Dow and trailing all other large-cap tech companies.
The ratio of Salesforce’s enterprise value to its free cash flow has reached a 10-year low because of fears of disruption from AI, according to analysts at Jefferies, who have a buy rating on the stock. Salesforce is trying to counter the pressure by selling its Agentforce AI software that can automate the handling of customer service questions.
During the fiscal second quarter, Salesforce said it was planning to increase the cost of some products and announced its intent to acquire data management software company Informatica for $8 billion.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
Dylan Field, co-founder and CEO of Figma, center, appears on the floor of the New York Stock Exchange in New York on July 31, 2025. Figma Inc. shares surged as much as 229% after the design software maker and some of its shareholders raised $1.2 billion in an IPO, with the trading valuing the company far above the $20 billion mark it would have reached in a now-scrapped merger with Adobe Inc.
Michael Nagle | Bloomberg | Getty Images
Figma shares plunged 13% in extended trading on Wednesday after the design software company reported results for the first time since its IPO in July.
Here’s how the company did in comparison with LSEG consensus:
Earnings per share: breakeven
Revenue: $249.6 million vs. $248.8 million expected
Revenue increased 41% year over year in the second quarter from $177.2 million a year earlier, Figma said in a statement. The company provided a preliminary estimate of $247 million to $250 million in a July regulatory filing. CNBC isn’t including a profit estimate because it’s Figma’s first earnings report.
Net income totaled $846,000, compared with a loss of $827.9 million in the second quarter of 2024. The company’s adjusted operating income came to $11.5 million, after Figma provided a prior estimate of $9 million to $12 million.
For the third quarter, Figma forecast revenue of between $263 million and $265 million, which would represent about 33% growth at the middle of the range. The LSEG consensus was $256.8 million.
The company sees between $88 million and $98 million in adjusted operating income for the full year and a little over $1.02 billion in revenue. The revenue range implies about 37% growth and is above the $1.01 billion LSEG consensus.
Last year, Figma picked up more revenue from customers as it sold them access to Dev Mode, which helps software developers to implement designs that designers create in the company’s software. That momentum is putting a damper on revenue growth for the third quarter, Figma co-founder and CEO Dylan Field said in an interview.
In the second quarter, Figma announced Figma Make, which uses artificial intelligence to compose app and website designs based on a user’s descriptions, and Figma Sites, which turns designs into working websites. The company also acquired vector graphics startup Modyfi and content management system startup Payload.
Figma has yet to start fully charging for AI products, but says it has built the underlying costs into its model. The company is not providing a forecast for third-quarter adjusted operating income.
A number of software vendors have faced pressure this year due to concerns surrounding AI and whether it will displace business. Field said he’s not seeing that play out internally and that, if anything, the role of designers will only become more critical.
“I think that the more that software becomes easier to build with AI, the more that people are going to see that that human touch is needed,” Field said. He acknowledged that Figma has been adopting so-called vibe-coding tools for AI-driven software development.
Figma reported a 129% net retention rate, a reflection of expansion with existing customers. The figure was down from 132% in the first quarter.
Following its IPO, Figma expects a share sale lockup to expire for 25% some employees’ stock after market close on Sept. 4. Investors holding just over half of Figma’s outstanding Class A stock have agreed to an extended lock-up that will expire in August 2026 for about 35% of their shares.
Field said he wanted to provide clarity for investors.
“That’s something that I think is valuable information,” he said.
On Wednesday the company’s stock closed at $68.13. The company priced shares in its IPO at $33, and saw the stock pop to $115.50 in its debut.
Executives will discuss the second-quarter results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.