Amazon.com Inc. reported revenue and profit that topped analysts’ estimates, buoyed by rising sales in its retail unit and significant cost cutting.

While sales growth in the cloud computing unit fell just short of projections, Chief Executive Officer Andy Jassy reassured investors on a conference call that the business had stabilized and said the company inked a number of deals that took effect early in the current quarter. The shares gained about 3.5% in extended trading on his comments.