Amazon Web Services Experiences Robust Revenue Growth Amid Strong Demand for Cloud Solutions
Amazon Web Services (AWS) closed out 2025 with its strongest quarterly growth in over three years, marking a pivotal moment in the cloud computing landscape. The company announced on Thursday that its cloud services division generated $35.6 billion in revenue during the fourth quarter, reflecting a remarkable 24% increase year-over-year. This growth represents the highest quarterly rate observed in 13 quarters, contributing to an annualized revenue run rate of $142 billion.
In addition, AWS reported an increase in operating income, rising to $12.5 billion in the fourth quarter compared to $10.6 billion during the same quarter last year.
During the company’s fourth-quarter earnings call, Amazon CEO Andy Jassy highlighted the significance of this growth, stating, “It’s very different having 24% year-over-year growth on a $142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors.” He emphasized that AWS continues to expand its capacity and revenue stream at a pace that outstrips many rivals in the industry.
The surge in AWS’s revenue can be attributed to key partnerships with organizations such as Salesforce, BlackRock, Perplexity, and the U.S. Air Force, among others. Jassy noted that a greater number of the top 500 U.S. startups choose AWS as their primary cloud provider compared to the next two competitors combined.
AWS also enhanced its data center capabilities by adding over a gigawatt of power during the last quarter, further solidifying its market position. Jassy remarked that many enterprises are still migrating their infrastructures to the cloud, contributing significantly to AWS’s sustained growth. Furthermore, he pointed out that AWS’s extensive AI capabilities have spurred additional demand, as customers are increasingly wishing to host AI workloads alongside their existing applications and data.
Despite these positive developments, AWS’s performance did not quell investor concerns. Following the announcement, Amazon’s shares experienced a 10% decline in after-hours trading as investors reacted negatively to the company’s plans for increased capital expenditures and a shortfall in earnings per share compared to Wall Street expectations.
Key Highlights:
– AWS achieved $35.6 billion revenue in Q4 2025, a 24% year-over-year increase.
– Operating income rose from $10.6 billion to $12.5 billion.
– Major partnerships with Salesforce, BlackRock, and the U.S. Air Force enhanced growth.
– AWS remains the primary choice for top U.S. startups.
– Power capacity in AWS data centers increased by over a gigawatt.
– Company stocks fell 10% in after-hours trading due to investor concerns over capital expenditures and earnings.
