AWS revenue continues to soar as cloud demand remains high

Amazon Web Services ended 2025 with its strongest quarterly growth rate in more than three years.

The company reported on Thursday that its cloud services business was developing well $35.6 billion in revenue in the fourth quarter of 2025. This figure marks a 24% year-over-year increase and the enterprise segment’s largest growth rate in 13 quarters. According to Amazon, annual revenue for the business segment is $142 billion. The cloud service also saw an increase in its operating revenue of $12.5 billion in the fourth quarter, compared to $10.6 billion in the same period in 2024.

“It is very different to have 24% annualized growth on a $142 billion annual run rate than it is to have a higher growth rate 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 revenue and capacity than others and expand our leadership position.”

That growth in the fourth quarter was fueled by new agreements with Salesforce, BlackRock, Perplexity and the US Air Force, among others.

“More of the top 500 US startups use AWS as their primary cloud provider than the next two providers combined,” says Jassy. “We are adding significant, simple computing capacity every day.”

AWS also added more than a gigawatt of power to its data center network in the fourth quarter.

Jassy said AWS still sees a fair share of its revenue coming from companies looking to move infrastructure from on-premises to the cloud. AWS is obviously also experiencing a boost from the AI ​​boom, and Jassy credited AWS’ AI stack functionality from top to bottom.

“We consistently see that customers want to run their AI workloads where the rest of their applications and data reside,” says Jassy. “We also see that as customers run large AI workloads on AWS, they also grow their core AWS footprint.”

AWS accounted for 16.6% of Amazon’s total revenue of $213.4 billion in the fourth quarter.

However, AWS’s success wasn’t enough to satisfy Amazon investors. Shares of Amazon fell 10% in after-hours trading after investors reacted to the company’s plan to increase capital spending and missed Wall Street’s expectations for earnings per share.