Amazon Q3 Preview: AWS Outage and Job Cuts Take Center Stage

This article first appeared on GuruFocus.

Amazon.com, Inc. (NASDAQ:AMZN) reports third-quarter 2025 results after the market closes on October 30. Analysts expect EPS of $1.57 and revenue near $178 billion. Currently, the stock is up only about 2% so far this year after a very volatile couple of months.

The business continues to lean on AWS and its advertising arm to drive profits, while its core retail and fulfillment divisions face lower margins. Cost inflation, complex logistics, and a more cautious consumer are weighing on that side of the business. Adding to the fire, AWS suffered a major outage on October 20 that disrupted thousands of apps and services globally. Investors will be listening closely for management's take on any customer impact, service backlogs, or potential compensation costs tied to the incident.

Meanwhile, Amazon's large capital spending, particularly in data centers and AI infrastructure, has put pressure on FCF. At the same time, the company is trying to improve margins by cutting thousands in corporate head-office roles. According to Reuters, Amazon is planning to cut as many as 30,000 corporate jobs as part of a broader effort to improve margins.

During the call, investors will also want clarity on a few points. Whether AWS margin can expand, how retail sales and average order values are trending and management's forecast for CapEx.

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