Amazon Web Services concluded 2025 with its most robust quarterly growth rate in over three years.
On Thursday, the company revealed that its cloud services division generated $35.6 billion in revenue during the fourth quarter of 2025. This represents a 24% increase compared to the previous year, marking the segment’s highest growth rate in 13 quarters. According to Amazon, the annual revenue run rate for this division is now $142 billion. Additionally, the cloud service experienced a rise in operating income, increasing from $12.5 billion in the fourth quarter of 2024 to $10.6 billion in the same timeframe in 2025.
“Achieving 24% year-over-year growth on a $142 billion annualized run rate is significantly different from attaining a higher percentage growth on a substantially smaller base, as is the case with our competitors,” stated Amazon CEO Andy Jassy during the company’s fourth-quarter earnings call. “We continue to generate more incremental revenue and capacity than others, thereby enhancing our leadership position.”
The growth in the fourth quarter was driven by new partnerships with Salesforce, BlackRock, Perplexity, and the U.S. Air Force, among other organizations and government bodies.
“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 are significantly enhancing core computing capacity daily.”
AWS also augmented its data center network by adding over a gigawatt of power in the fourth quarter.
Jassy mentioned that AWS continues to attract substantial business from enterprises transitioning their infrastructure from on-premise solutions to the cloud. The AI surge has also contributed positively to AWS, which Jassy credited to the integrated functionality of AWS’s comprehensive AI stack.
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“We consistently observe customers wishing to run their AI workloads in conjunction with their other applications and data,” Jassy stated. “Furthermore, as customers execute large AI workloads on AWS, they are also expanding their core AWS usage.”
AWS accounted for 16.6% of Amazon’s total revenue, which reached $213.4 billion in the fourth quarter.
Nevertheless, AWS’s achievements did not satisfy Amazon investors; the company’s shares dropped by 10% in after-hours trading following investor concerns about plans to increase capital expenditures and earnings that fell short of Wall Street expectations.
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