Amazon Web Services ended 2025 with its highest quarterly growth rate in more than three years.
The company reported Thursday that its cloud services business had revenue of $35.6 billion in the fourth quarter of 2025. This figure represents a 24% increase compared to the same period last year and marks the highest growth rate for the business in 13 quarters. According to Amazon, the business unit’s annual revenue is $142 billion. Operating profit from cloud services also increased from $12.5 billion in the fourth quarter compared to $10.6 billion in the same period in 2024.
“Growing 24% year-over-year with a $142 billion annual run rate is very different from seeing higher growth from a meaningfully 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 revenue and capabilities and expand our leadership position than any other company.”
This fourth quarter growth was driven by new contracts with several companies and government agencies, including Salesforce, BlackRock, Perplexity, and the U.S. Air Force.
“More of the top 500 startups in the U.S. use AWS as their primary cloud provider than the next two providers combined,” Jassy said. “We are adding core computing capacity every day quite easily.”
AWS also added more than a gigawatt of power to its data center network in the fourth quarter.
Jassy sees AWS still receiving a significant amount of business from enterprises looking to move their infrastructure from on-premises to the cloud. Of course, AWS is also seeing growth due to the AI boom, and Jassy praised AWS’s top-down AI stack capabilities.
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“We continue to see customers wanting to run their AI workloads where the rest of their applications and data resides,” Jassy said. “We also see core AWS footprint being added as customers run large-scale AI workloads on AWS.”
AWS accounted for 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 investors. Amazon shares fell 10% in after-hours trading after investors reacted to the company’s plans to increase capital spending and missed Wall Street expectations for earnings per share.
