AWS Revenue Soars Amid Sustained High Cloud Demand
Amazon Web Services (AWS) reported significant growth in its cloud service business for the fourth quarter of 2025, showcasing the continued high demand for cloud services. The company generated $35.6 billion in revenue, marking a remarkable 24% increase compared to the same period in the previous year.
AWS Revenue Growth Overview
This growth represents the highest quarterly growth rate for AWS in over three years, with an annual revenue run rate of $142 billion. AWS’s operating income also saw an increase, rising to $12.5 billion in the fourth quarter from $10.6 billion in Q4 2024.
CEO Insights on Growth Dynamics
During the earnings call, AWS CEO Andy Jassy emphasized the significance of this growth. He stated, “Having 24% year-over-year growth on a $142 billion annualized run rate is considerably different from achieving a higher percentage on a smaller base.” Jassy highlighted AWS’s ability to add incremental revenue and capacity, reinforcing its leadership in the cloud market.
Key Partnerships Driving Expansion
The surge in revenue was accelerated by new partnerships with notable organizations such as Salesforce, BlackRock, Perplexity, and the U.S. Air Force. Jassy noted that a significant number of the top 500 U.S. startups have chosen AWS as their primary cloud service provider, outpacing the next two competitors combined.
- Fourth quarter revenue: $35.6 billion
- Year-on-year growth: 24%
- Annual revenue run rate: $142 billion
- Operating income: $12.5 billion
- Major partnerships: Salesforce, BlackRock, Perplexity, U.S. Air Force
Infrastructure and AI Initiatives
AWS expanded its data center network by adding over a gigawatt of power in the fourth quarter. The demand for cloud services is further fueled by enterprises migrating their on-premise infrastructure to the cloud. This transition is complemented by a growing interest in artificial intelligence (AI), as noted by Jassy.
He remarked that customers increasingly prefer to run their AI workloads alongside their other applications and data on AWS, contributing to the platform’s expanded footprint.
Market Impact and Investor Reactions
Despite these impressive figures, AWS’s performance did not fully satisfy Amazon investors. Following the earnings announcement, Amazon’s shares dropped by 10% in after-hours trading. Investors reacted negatively to news of increased capital expenditures and earnings per share that fell short of Wall Street predictions.
AWS played a crucial role in Amazon’s overall revenue, contributing 16.6% to the company’s total of $213.4 billion for the fourth quarter.
