Amazon Web Services closed 2025 with its strongest quarterly growth rate in more than three years.
The company said Thursday that it has listed its cloud services business Revenue of $35.6 billion in the fourth quarter of 2025. This figure marks a 24% year-over-year increase and the business sector’s fastest growth rate in 13 quarters. The annual revenue rate for the business sector is $142 billion, according to Amazon. The cloud service also saw an increase in its operating income from $12.5 billion in the fourth quarter compared to $10.6 billion in the same period in 2024.
“It’s very different to have 24% year-over-year growth on an annualized run rate of $142 billion than to have a higher rate of growth on a significantly smaller base, as is the case 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 others and extend our leadership position.”
This fourth quarter growth was fueled by new deals with Salesforce, BlackRock, Perplexity and the US Air Force, among other companies and government entities.
“More of the top 500 US startups use AWS as their primary cloud provider than the next two providers combined,” said Jassy. “We’re adding significant computing power to the core every day.”
AWS also added more than a gigawatt of capacity to its data center network in the fourth quarter.
Jassy said AWS still sees much of its business coming from businesses looking to move infrastructure from on-premises to the cloud. AWS, of course, is also seeing a boost from the AI boom, and Jassy attributed the functionality of the AI stack from top to bottom.
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“We’re constantly seeing customers want to run their AI workloads where the rest of their applications and data reside,” Jassy said. “We’re also seeing that as customers run large AI workloads on AWS, they’re also adding to their AWS core footprint.”
AWS made up 16.6% of Amazon’s total revenue of $213.4 billion in the fourth quarter.
But AWS’s success wasn’t enough to appease Amazon’s investors. Amazon shares fell 10% in after-hours trading after investors reacted to the company’s plan to boost capital spending and missed Wall Street’s earnings per share expectations.
