AWS Reports Record $35.6B Quarterly Revenue with 24% YoY Growth Amid Surging Cloud and AI Demand

Amazon Web Services concluded Q4 2025 with its most robust quarterly growth trajectory in over three years. The cloud infrastructure provider generated $35.6 billion in revenue during the fourth quarter of 2025, representing a 24% year-over-year increase and marking the business unit's highest growth rate across the past 13 quarters.

The cloud services division now operates at an annualized revenue run rate of $142 billion, according to Amazon's financial disclosure. Operating income for the segment increased to $12.5 billion in Q4 2025, up from $10.6 billion in the corresponding period of 2024.

"Achieving 24% year-over-year growth on a $142 billion annualized run rate represents a fundamentally different scale challenge compared to higher percentage growth on a substantially smaller base, which characterizes our competitors' positions," stated Amazon CEO Andy Jassy during the company's Q4 earnings call. "We continue to deliver more incremental revenue and infrastructure capacity than competing providers, further extending our market leadership position."

The fourth quarter expansion was driven by strategic partnerships and enterprise agreements with multiple high-profile organizations, including:

According to Jassy, AWS serves more of the top 500 U.S. startups as their primary cloud infrastructure provider than the next two competitors combined. The company continues to provision substantial compute capacity on a daily basis to meet escalating demand.

Infrastructure expansion remained a priority, with AWS adding more than one gigawatt of power capacity to its global data center network during Q4 alone. Jassy noted that a significant portion of business growth continues to originate from enterprises migrating on-premises infrastructure to cloud-based architectures.

AI workload acceleration has emerged as a substantial growth driver for AWS. Jassy attributed this success to AWS's comprehensive, full-stack AI capabilities spanning infrastructure, platform services, and application layers.

"We consistently observe customers preferring to execute AI workloads in proximity to their existing applications and data repositories," Jassy explained. "Furthermore, as customers deploy large-scale AI workloads on AWS infrastructure, they concurrently expand their core AWS footprint across additional services."

AWS represented 16.6% of Amazon's total $213.4 billion revenue in Q4 2025. Despite the cloud division's strong performance, Amazon shares declined 10% in after-hours trading as investors responded to the company's planned capital expenditure increases and earnings per share figures that fell short of Wall Street analyst expectations.

Source:
Amazon Q4 2025 Financial Results