Q2 Amazon Report: International Sales Surge & Record Advertising Profit

It’s difficult to find any surprises in Amazon’s Q2 performance. Quarter on quarter, they continue to deliver growth. In 2024, international growth and profitability were a concern, but they have turned a corner through operational efficiency and cutbacks to counteract economic and inflationary headwinds. The International division (including the EU) delivered 16% year-over-year growth, with net sales of $36.8 billion, outperforming the U.S. business.

Amazon’s advertising business continues its rapid ascent, posting a 22% year-on-year jump to $15.7 billion in Q2. Expanded Connected TV partnerships, new AI-powered ad tools, and a diverse content portfolio spanning Prime Video, Twitch, and live sports have strengthened their proposition—giving brands more reason to give Amazon a larger slice of their ad budgets.

Unsurprisingly, AI and technology have been major focuses. Amazon announced new investments in AI and cloud infrastructure, outpacing some of their tech rivals. Automation and robotics have been important contributors to improved cost efficiencies. CEO Andy Jassy told investors that they had deployed their millionth robot across their global fulfilment network.

They also unveiled upgrades to Alexa+, with plans to integrate AI-powered dynamic ads and conventional shopping features. It is now possible to simply ask for “a birthday gift for a 10-year-old” or “best-rated Bluetooth headphones under £100”—and Alexa+ will use AI to search, compare, and generate tailored recommendations. Alexa+ can remember past purchases, understand context across conversations, and even place complex online orders on command.

There were the usual announcements around Prime Day ahead of the Q3 report—“the largest yet,” with “records for sales, number of items sold,” and Prime membership sign-ups. Once again, the greatest success was with independent sellers: the small and medium-sized businesses that are the bedrock of Amazon, achieving record sales.

Conclusion? Amazon is a safe bet for the future. The scale, global reach, operational excellence, and diversification of the business make it difficult to see how competitors can keep pace. AI is the new frontier, and Amazon is in the race alongside other tech mammoths, whose AI divisions saw even faster growth this quarter. AI monetisation is still in its infancy, so it will be years before a winner is identified.