AWS revenue continues to climb at an impressive pace, reinforcing Amazon’s dominance in the global cloud market as enterprise and AI demand show no signs of slowing.
Amazon Web Services closed out 2025 with its strongest quarterly growth rate in more than three years, according to earnings released Thursday. The cloud division posted $35.6 billion in revenue for Q4 2025, representing a 24% year-over-year increase — its largest growth rate in 13 quarters.
That performance pushes AWS revenue to an annualized run rate of $142 billion, underlining just how massive the business has become. Operating income also climbed sharply, rising to $12.5 billion in Q4, up from $10.6 billion during the same period last year.
Why AWS Revenue Growth Matters More at This Scale
Speaking during Amazon’s earnings call, Andy Jassy emphasized that AWS’s growth is especially notable given the size of the business.
“It’s very different having 24% year-over-year growth on a $142 billion annualized run rate than having higher percentage growth on a much smaller base,” Jassy said. “We continue to add more incremental revenue and capacity than others, and extend our leadership position.”
In other words, AWS revenue isn’t just growing fast — it’s growing fast at enormous scale, something competitors continue to struggle to match.
Big Customers and Big Deals Fuel the Surge
The strong quarter was powered by major new agreements across both the private and public sectors.
AWS signed fresh deals with Salesforce, BlackRock, Perplexity, and the U.S. Air Force, among others.
Jassy also highlighted AWS’s deep penetration into the startup ecosystem.
“More of the top 500 U.S. startups use AWS as their primary cloud provider than the next two providers combined,” he said, noting that the company continues to add significant new computing capacity every day.
Infrastructure Expansion Keeps Pace With Demand
To support rising AWS revenue, the company is scaling aggressively on the infrastructure side.
During the fourth quarter alone, AWS added more than one gigawatt of power capacity to its global data center footprint — a clear signal that Amazon expects cloud and AI workloads to keep growing rapidly.
Jassy added that a large portion of AWS’s growth is still coming from enterprises migrating workloads from on-premise systems to the cloud, a long-running trend that remains far from complete.
AI Is Accelerating Core Cloud Growth
The AI boom is also playing a major role in lifting AWS revenue.
According to Jassy, customers increasingly want to run AI workloads in the same environment where their applications and data already live — and for many enterprises, that environment is AWS.
“We consistently see customers wanting to run their AI workloads where the rest of their applications and data are,” Jassy said. “As customers run large AI workloads on AWS, they’re also expanding their core AWS footprint.”
That dynamic is helping AWS benefit from AI both directly and indirectly, as compute-heavy AI projects drive broader cloud adoption.
Strong AWS Revenue, Mixed Market Reaction
AWS accounted for 16.6% of Amazon’s total $213.4 billion revenue in the fourth quarter — a significant share for a business that continues to outgrow much of the rest of the company.
Still, strong AWS revenue wasn’t enough to satisfy investors. Amazon shares fell 10% in after-hours trading after the company missed Wall Street expectations on earnings per share and outlined plans to significantly increase capital expenditures.
Even so, AWS’s performance makes one thing clear: cloud — and increasingly AI — remains Amazon’s most powerful growth engine.
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