Amazon Web Services Reports Strongest Quarterly Growth Rate in Three Years
Amazon Web Services (AWS) concluded 2025 with a remarkable performance, achieving its highest quarterly growth rate in over three years.
In the fourth quarter of 2025, AWS generated a revenue of $35.6 billion, marking a 24% year-on-year increase and the segment’s most significant growth rate in 13 quarters. With an annual revenue run rate of $142 billion, AWS displayed substantial growth in operating income, reaching $12.5 billion compared to $10.6 billion in the same period of 2024.
During the company’s fourth-quarter earnings call, Amazon CEO Andy Jassy emphasized the significance of AWS’s consistent growth on a substantial revenue base. Jassy stated, “We continue to add more incremental revenue and capacity than others, and extend our leadership position.”
The impressive growth in the fourth quarter was driven by new partnerships with prominent organizations such as Salesforce, BlackRock, Perplexity, and the U.S. Air Force. Jassy highlighted that a majority of the top 500 U.S. startups rely on AWS as their primary cloud provider, solidifying AWS’s position as a preferred choice in the industry.
In addition to expanding its customer base, AWS bolstered its infrastructure by adding over a gigawatt of power to its data center network during the fourth quarter. Jassy also mentioned that AWS continues to attract enterprise clients looking to transition their infrastructure from on-premise to the cloud.
AWS’s success can be attributed to the growing demand for AI services, with customers leveraging AWS’s comprehensive AI stack functionality for their workloads. Jassy noted, “We consistently see customers wanting to run their AI workloads where the rest of their applications and data are.”
Despite AWS contributing 16.6% to Amazon’s overall revenue of $213.4 billion in the fourth quarter, Amazon’s shares experienced a 10% decline in after-hours trading. This drop was a result of investors reacting to the company’s plans to increase capital expenditures and falling short of Wall Street’s earnings per share expectations.
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