AWS Fourth-Quarter Revenue Grows 24% to $35.6 Billion

Amazon Web Services (AWS) reported $35.6 billion in revenue for the fourth quarter of 2025, reflecting a 24 percent increase compared to the same period last year. This marks AWS's strongest quarterly growth rate since early 2022 and highlights sustained demand for cloud computing and artificial intelligence (AI) services.

AWS, Amazon's cloud subsidiary, posted a growth rate that outpaces competitors, reinforcing its leadership in the public cloud market. The annualized revenue run rate for AWS reached $142 billion, and the division’s operating income climbed to $12.5 billion, up from $10.6 billion the previous year.

Chief Executive Andy Jassy attributed the performance to enduring customer demand, new enterprise agreements, and the expansion of AI-related workloads. He noted that achieving 24 percent year-over-year growth on AWS's scale is notable given the segment’s substantial revenue base compared to rival cloud providers. Jassy stated, "We continue to add more incremental revenue and capacity than others, and extend our leadership position."

Major contract wins during the quarter included agreements with Salesforce, BlackRock, Perplexity, and the U.S. Air Force, as well as deals with other private sector and government clients. Jassy emphasized AWS's popularity among startups, stating that more of the top 500 U.S. startups use AWS for cloud computing than the next two largest providers combined. This underscores AWS’s established position within enterprise, financial, AI, and public sector markets.

AWS’s growth was supported by significant infrastructure investments, including the addition of more than one gigawatt of power capacity to its global data-center network. Enterprise migrations to the cloud contributed meaningfully to this performance, as businesses increasingly shift away from on-premise computing to cloud platforms that offer scalability and access to advanced AI services.

AI workloads played a pivotal role in AWS’s expansion. The company provides a full technology stack, from foundational machine learning models to deployment tools, enabling customers to build and scale AI applications efficiently. Jassy noted a continuing trend of customers consolidating their workloads, including AI projects, on AWS infrastructure for operational efficiency.

For the quarter, AWS accounted for 16.6 percent of Amazon’s total $213.4 billion in revenue. Despite the segment's robust performance, Amazon shares fell by 10 percent in after-hours trading, driven by news of increased capital expenditures and earnings per share that missed some analyst expectations.

Overall, AWS’s fourth-quarter results reinforce the central role of cloud computing and AI infrastructure in Amazon’s corporate strategy and the broader technology ecosystem.

Source: dataconomy.com