Amazon's operating income soars to $13.2bn as sales increase in fourth quarter

Amazon’s operating income increased to $13.2bn (£10.3bn) in the fourth quarter during 2023, compared to $2.7bn (£2.1bn) during the same time the previous year. Meanwhile, operating income for the full year increased to $36.9bn (£28.9bn) in 2023, from $12.2bn (£9.6bn) in 2022. 

The retail giant’s sales also increased during the fourth quarter, up 14% to $170bn (£133.4bn) compared to $149.2bn (£117.1bn) in the fourth quarter the previous year. For the full year, Amazon’s net sales increased 12% to $574.8bn (£451.1bn) in 2023, up from $514.0bn (£403.2bn) in 2022.

“This Q4 was a record-breaking holiday shopping season and closed out a robust 2023 for Amazon,” said Amazon c.e.o. Andy Jassy. “While we made meaningful revenue, operating income, and free cashflow progress, what we’re most pleased with is the continued invention and customer experience improvements across our businesses."

Jassy highlighted the achievement of the highest speed and low costs of deliveries for Prime members in the US. Of Amazon Web Services (AWS), he added: "AWS’ continued long-term focus on customers and feature delivery, coupled with new genAI capabilities like Bedrock, Q, and Trainium have resonated with customers and are starting to be reflected in our overall results."