Amazon’s Third Quarter Results: Will Workforce Reductions and Artificial Intelligence Drive Long-Term Expansion?

Amazon.com Inc. (NASDAQ: AMZN) is set to announce its third-quarter results on October 30, drawing significant attention from analysts and investors eager to see how the e-commerce leader is addressing recent obstacles and pursuing new growth strategies. UBS has increased its price target to $279 from $271 and continues to recommend a "Buy," highlighting Amazon's robust performance and anticipated gains in both cloud services and advertising, as reported by

. Shares are currently valued at $230.61, marking a 1.6% rise so far in 2025, which signals ongoing faith in Amazon’s diverse operations despite challenges such as the latest AWS disruption and workforce reductions, according to a report.

The company is under the microscope for its plan to eliminate up to 30,000 corporate roles—about 8.6% of its office staff—as part of broader cost-saving efforts following a hiring boom during the pandemic, according to

. While analysts believe these layoffs could make Amazon more efficient, they also raise concerns about the company’s long-term employment stability. At the same time, Amazon’s push into automation and artificial intelligence, including initiatives like Project Rainier, is expected to improve productivity and boost investor confidence. Wolfe Research has raised its 2026 operating income forecast by 3.5%, as noted by Investing.com.

Revenue growth remains a central concern. Amazon’s guidance for the third quarter anticipates net sales between $174 billion and $179.5 billion, representing a 10-13% increase from the previous year, though currency fluctuations are expected to reduce results by 130 basis points, according to

. The company’s international push, especially in the Netherlands, highlights its global aspirations. A $1.6 billion investment there is intended to strengthen AI tools for sellers and expand both e-commerce and AWS services, as the Benzinga preview mentioned. This comes after Amazon’s international revenue grew 16% year-over-year in Q2, outpacing the 11% growth seen in North America, according to the same Benzinga preview.

AWS, Amazon’s cloud arm, remains a key driver of innovation. However, recent service interruptions have exposed some weaknesses, sparking debates about reliability and customer confidence. AWS posted a 17.5% year-over-year revenue increase in Q2, though this was slower than in previous periods, as Benzinga pointed out. UBS expects AWS to achieve 18% annual growth in Q3, with further acceleration possible in 2026 as new infrastructure becomes operational, according to Investing.com. AWS’s results will be crucial in proving Amazon’s ability to stay ahead in the competitive cloud sector against companies like Microsoft and Google.

Amazon’s online retail division continues to demonstrate strength. The extended Prime Day event in July 2025, which lasted four days and spanned 26 countries, achieved record-breaking sales, with U.S. e-commerce revenue reaching $24.1 billion, as reported by

. Services for third-party sellers, a major growth engine, are expected to bring in $41.7 billion in Q3, a 10.2% increase from last year, according to Nasdaq. Furthermore, the rollout of same-day delivery for perishable groceries in over 1,000 U.S. cities—with plans to expand to 2,300 by year’s end—positions to capture a larger portion of the grocery sector, Nasdaq added.

Investor confidence is also being boosted by Amazon’s moves into physical retail and digital advertising. The adoption of AI-driven features like Rufus and Amazon Lens is improving the shopping experience, while Prime Video’s acquisition of NBA broadcasting rights for the 2025-2026 season enhances its live sports lineup, as noted in the Benzinga preview. These efforts are designed to broaden Amazon’s revenue base and offset any slowdown in its core e-commerce business.

As Amazon approaches its Q3 earnings release, observers will be evaluating how well the company balances cost controls with innovation, manages global risks, and sustains growth in both established and new markets. With a market valuation of $2.42 trillion, Amazon’s upcoming decisions could influence not only its own future but also the wider technology and retail landscape.