AWS revenue continues to soar as cloud demand remains high

Amazon Web Services closed out 2025 with its fastest quarterly expansion in more than three years, underscoring continued strength in global cloud demand.

The company disclosed on Thursday that its cloud computing division generated $35.6 billion in revenue during the fourth quarter of 2025, a 24% increase from the same period a year earlier—this marked AWS’s strongest growth rate in 13 quarters. Based on current performance, Amazon said the business is now operating at an aannualisedrevenue run rate of $142 billion. Operating income for the segment also rose, reaching $12.5 billion in the fourth quarter, up from $10.6 billion in Q4 2024.

“It’s very different having 24% year-over-year growth on a $142 billion annualised run rate than posting higher percentage growth on a much smaller base, which is what you see with our competitors,” Amazon CEO Andy Jassy said during the company’s fourth-quarter earnings call. “We continue to add more incremental revenue and capacity than anyone else, while extending our leadership position.”

Much of AWS’s fourth-quarter momentum came from newly signed contracts with major customers, including Salesforce, BlackRock, Perplexity, and the U.S. Air Force, along with other enterprise and government clients.

“More of the top 500 U.S. startups rely on AWS as their primary cloud provider than the next two providers combined,” Jassy noted. “We’re adding meaningful core computing capacity every single day.”

During the quarter, AWS also expanded its datacenter footprint, adding more than one gigawatt of power capacity to support growing workloads.

Jassy said a significant portion of AWS’s business continues to come from enterprises migrating their infrastructure from on-premise systems to the cloud. At the same time, the ongoing surge in artificial intelligence adoption is driving additional demand, with Jassy highlighting AWS’s end-to-end AI platform capabilities.

“We consistently see customers choosing to run AI workloads where their existing applications and data already live,” Jassy said. “And as customers scale large AI workloads on AWS, we’re seeing that translate into further expansion of their overall AWS usage.”

AWS accounted for 16.6% of Amazon’s total revenue of $213.4 billion in the fourth quarter.

Despite the strong performance from AWS, Amazon’s broader earnings report failed to satisfy investors. Shares of the company dropped 10% in after-hours trading after concerns about increased capital expenditure plans and earnings per share that came in below Wall Street expectations.