AWS income continues to soar as cloud demand stays excessive

Amazon Internet Companies ended 2025 with its strongest quarterly progress price in additional than three years.

The corporate reported Thursday that its cloud service enterprise recorded $35.6 billion in revenue within the fourth quarter of 2025. This determine marks a 24% year-on-year improve and the enterprise phase’s largest progress price in 13 quarters. Annual income run price for the enterprise phase is $142 billion, in accordance with Amazon. The cloud service additionally noticed a rise in its working revenue from $12.5 billion within the fourth quarter in comparison with $10.6 billion in the identical interval in 2024.

“It’s very completely different having 24% year-over-year progress on $142 billion annualized run price than to have the next proportion progress on a meaningfully smaller base, which is the case with our opponents,” Amazon CEO Andy Jassy stated in the course of the firm’s fourth-quarter earnings name. “We proceed so as to add extra incremental income and capability than others, and lengthen our management place.”

That fourth-quarter progress was fueled by new agreements with Salesforce, BlackRock, Perplexity, and the U.S. Air Pressure, amongst different corporations and authorities entities.

“Extra of the highest 500 U.S. startups use AWS as their major cloud supplier than the following two suppliers mixed,” Jassy stated. “We’re including important straightforward to core computing capability every day.”

AWS additionally added greater than a gigawatt of energy to its knowledge middle community within the fourth quarter.

Jassy stated AWS nonetheless sees a good quantity of its enterprise coming from enterprises that need to transfer infrastructure from on-premise to the cloud. AWS is, in fact, additionally seeing a lift from the AI growth, and Jassy credited AWS’s top-to-bottom AI stack performance.

“We constantly see prospects eager to run their AI workloads the place the remainder of their purposes and knowledge are,” Jassy stated. “We’re additionally seeing that as prospects run giant AI workloads on AWS, they’re including to their core AWS footprint as properly.”

AWS made up 16.6% of Amazon’s total $213.4 billion income within the fourth quarter.

AWS’s success wasn’t sufficient to appease Amazon buyers, nonetheless. Amazon shares fell 10% in after-hours buying and selling after buyers reacted to the corporate’s plan to spice up capital expenditures and missed Wall Road’s expectations on earnings per share.