Amazon (AMZN) is set to release its first quarter earnings for 2025 on Thursday, with Wall Street closely monitoring how ongoing U.S. tariffs may impact the e-commerce giant’s performance. The announcement follows political tensions with the White House over Amazon’s handling of potential tariff-related product pricing.

Amazon Earnings Forecast Q1 2025

According to Bloomberg consensus estimates, Amazon is expected to report:

• Earnings per share (EPS): $1.36

• Revenue: $155.1 billion

This would represent a significant year-over-year increase from Q1 2024, when the company posted an EPS of $0.98 on $143.3 billion in revenue.

Amazon Faces Tariff Controversy Ahead of Earnings

The earnings release comes on the heels of a tariff pricing controversy. A report from PunchBowl News suggested Amazon was preparing to reflect import tariffs on its e-commerce listings. The Trump administration reacted sharply, with White House Press Secretary Karoline Leavitt calling the move “hostile and political.” President Trump reportedly contacted Amazon founder Jeff Bezos directly.

Amazon later denied any plan to update product pricing to include tariffs. “This was never approved and is not going to happen,” said spokesperson Tim Doyle, referencing an internal idea floated by the Amazon Haul team.

Trump’s Response and Amazon’s Position

Despite the initial backlash, President Trump appeared satisfied with Amazon’s quick reversal, stating, “Jeff Bezos is very nice. Terrific. He solved the problem very quickly. He did the right thing. Good guy.”

Still, the incident highlights the risks tech companies face under current U.S. trade policies, especially regarding rising import duties. Products from China now face a 145% tariff, while imports from other countries are subject to a 10% flat tariff.

UBS analyst Stephen Ju estimates that over 50% of items sold on Amazon could be affected, potentially increasing consumer prices and reducing discretionary spending.

“Consumers may have to reconsider where to allocate their dollars,” Ju noted, also warning of broader economic ripple effects impacting international employment and gross merchandise value (GMV) growth.

Amazon AI Investment in Focus

Beyond tariffs, investors will also look to Amazon’s earnings call for updates on its artificial intelligence strategy. Like competitors Microsoft (MSFT) and Alphabet (GOOG), Amazon is investing billions into AI infrastructure, including data centers for generative AI tools and enterprise applications.

However, the market still wants to see tangible returns on Amazon’s AI investment, particularly as competition intensifies in the cloud and AI sectors.

Amazon Stock Performance

Ahead of the earnings report, Amazon stock (AMZN) closed at $184.42 on Tuesday, down 1.58%, but showed strength in pre-market trading, rising over 4% to $191.92.