v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology costs recorded in “Technology and infrastructure” are incurred in the U.S. and are included in our North America and AWS segments. The majority of infrastructure costs recorded in “Technology and infrastructure” are allocated to the AWS segment based on usage. There are no internal revenue transactions between our reportable segments. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. Our CODM regularly reviews consolidated net sales, consolidated operating expenses, and consolidated operating income (loss) by segment. Amounts included in consolidated operating expenses include “Cost of sales,” “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” “General and administrative,” and “Other operating expense (income), net.” Our CODM manages our business primarily by reviewing consolidated results by segment on a quarterly basis, and using those results along with forecasts and other non-financial information in our annual budgeting process.
North America
The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and advertising and subscription services through North America-focused online and physical stores. This segment includes export sales from these online stores.
International
The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and advertising and subscription services through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores.
AWS
The AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions.
Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):
Three Months Ended
March 31,
20252026
North America
Net sales$92,887 $104,143 
Operating expenses87,046 95,876 
Operating income$5,841 $8,267 
International
Net sales$33,513 $39,789 
Operating expenses32,496 38,365 
Operating income$1,017 $1,424 
AWS
Net sales$29,267 $37,587 
Operating expenses17,720 23,426 
Operating income$11,547 $14,161 
Consolidated
Net sales$155,667 $181,519 
Operating expenses137,262 157,667 
Operating income18,405 23,852 
Total non-operating income3,274 15,982 
Provision for income taxes(4,553)(9,560)
Equity-method investment activity, net of tax1 (19)
Net income$17,127 $30,255 
Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):    
Three Months Ended
March 31,
20252026
Net Sales:
Online stores (1)$57,407 $64,254 
Physical stores (2)5,533 5,785 
Third-party seller services (3)36,512 41,578 
Advertising services (4)13,921 17,243 
Subscription services (5)11,715 13,427 
AWS29,267 37,587 
Other (6)1,312 1,645 
Consolidated$155,667 $181,519 
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(1)Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”
(2)Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”
(3)Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.
(4)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(5)Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(6)Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements.
Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, and tax assets. Technology infrastructure assets, which are included in property and equipment, net, net additions, and the depreciation and amortization expense on these assets, are allocated among the segments based on usage, with the majority allocated to the AWS segment. Usage of technology infrastructure assets by the North America and International segments, and the related allocation of total net additions, can fluctuate on a quarter-to-quarter basis, and is affected by seasonality, peak periods, new product or service offerings, and other factors.
Total segment assets reconciled to consolidated amounts are as follows (in millions):
 December 31, 2025March 31, 2026
North America (1)$235,652 $241,817 
International (1)81,984 81,000 
AWS (2)252,588 294,121 
Corporate247,818 299,692 
Consolidated$818,042 $916,630 
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(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, accounts receivable, and digital video and music content.
Property and equipment, net by segment is as follows (in millions):
 December 31, 2025March 31, 2026
North America$122,043 $129,241 
International30,632 30,899 
AWS190,055 223,056 
Corporate14,295 14,262 
Consolidated$357,025 $397,458 
Total net additions to property and equipment include technology infrastructure assets and the effect of non-cash activity such as property and equipment acquired but not yet paid.
Total net additions to property and equipment are as follows (in millions):
Three Months Ended
March 31,
 20252026
North America (1)$5,096 $11,126 
International (1)1,506 1,727 
AWS (2)20,464 41,516 
Corporate383 388 
Consolidated$27,449 $54,757 
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(1)Includes property and equipment added under finance leases of $54 million and $237 million in Q1 2025 and Q1 2026.
(2)Includes property and equipment added under finance leases of $0 million and $1.3 billion in Q1 2025 and Q1 2026.
Depreciation and amortization expense on property and equipment, including corporate property and equipment, are allocated to all segments based on usage.
Total depreciation and amortization expense, by segment, is as follows (in millions):
 Three Months Ended
March 31,
 20252026
North America$3,530 $4,280 
International1,136 1,277 
AWS4,390 7,277 
Consolidated$9,056 $12,834