Amazon reported stronger-than-expected first-quarter results and said its grocery business continues to gain ground, with Chief Executive Andy Jassy declaring the company is now the No. 2 grocer in the United States by sales. Amazon’s first-quarter results offered new evidence that grocery has become a central growth engine for the company.
The company said first-quarter net sales rose 17% to $181.5 billion from $155.7 billion a year earlier, while net income climbed to $30.3 billion, or $2.78 per diluted share, from $17.1 billion, or $1.59 per share. Operating income increased to $23.9 billion from $18.4 billion.
During Amazon’s April 29 earnings call, Jassy said the company generated more than $150 billion in grocery gross sales in 2025, making it the second-largest grocer in the U.S., behind Walmart.
Amazon said grocery momentum has been driven by rapid gains in same-day delivery, particularly perishables. Jassy said perishable grocery sales have grown more than 40-fold year over year in markets where the service is offered, and those orders now account for nine of the 10 most-ordered same-day items.
Customers adding groceries to same-day baskets also buy nearly three times as many items and spend more than 80% more than shoppers who do not, he said.
The company said it now offers same-day grocery delivery in more than 2,300 U.S. cities and towns and has expanded one-hour and three-hour delivery options on more than 90,000 products. Analysts view speed as critical in winning routine grocery trips that traditionally belonged to supermarkets.
Amazon also pointed to growth in its physical grocery footprint through Whole Foods Market, which it said has more than 550 stores, with 100 more planned over the next several years.
While grocery was a focus, Amazon’s overall quarter was led by strength in cloud computing and advertising. Its Amazon Web Services unit posted 28% sales growth to $37.6 billion.
On the physical side, Amazon is consolidating around Whole Foods Market after closing most Amazon Fresh and Amazon Go locations earlier this year. The company said Whole Foods has more than 550 stores, with more than 100 additional locations planned over the next several years. Some former Fresh sites are being converted into Whole Foods stores.
