The latest quarter from Amazon shows the eCommerce giant firing on all cylinders, recording one of its most profitable periods in years. Operating margins hit double digits, continuing a steady upward trend-well ahead of last year's Q3 margin of 9.5%. Here are the key highlights:

AWS Accelerates Above Expectations
Amazon Web Services (AWS) grew 20% year-over-year, outpacing consensus and adding $5.5 billion in incremental sales. AWS is capitalizing on the industry-wide shift toward cloud, with Google and Microsoft also reporting healthy gains, albeit from smaller bases.

Marketplace and Seller Services Fuel Growth
Third-Party Seller Services delivered a second consecutive quarter of double-digit growth. Since Amazon takes a referral fee from these transactions, strong 3P sales signal not just higher volume but greater pricing power.

Advertising Revenue Momentum Continues
Amazon's advertising business jumped 24% this quarter, building on last quarter's 23% growth. This surge comes as Amazon steadily grabs market share from rivals like The Trade Desk, strengthening its position as a key force in digital marketing.

Online Sales and Inventory Imbalance
Core online sales rose 10%, the second straight quarter of double-digit growth. However, inventory levels climbed even faster: up 14% this quarter and 19% in Q2. While the pace of inventory accumulation is slowing, the overhang remains. This imbalance points to elevated pricing and stepped-up vendor funding as Amazon seeks to convert heavy inventory into margin gains.

Amazon's latest results underscore its ability to grow both the top and bottom line-even as the retail landscape remains fiercely competitive and inventory levels remain in focus.