AWS revenue continues to rise as demand for the cloud continues to rise

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

The company reported Thursday that its cloud services business posted revenue of $35.6 billion in the fourth quarter of 2025. The figure represents a 24% year-over-year increase and the largest growth rate for the business in 13 quarters. The business has an annual revenue run rate of $142 billion, according to Amazon. The cloud service also saw its operating income increase from $12.5 billion in the fourth quarter compared to $10.6 billion in the same period in 2024.

“Achieving 24% year-over-year growth on an annual run rate of $142 billion is very different from achieving a higher percentage growth on a significantly smaller base, which 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 additional capacity than others, expanding our leadership position.”

This growth in the fourth quarter was driven by new agreements with Salesforce, BlackRock, Perplexity, and the US Air Force, among other companies and government agencies.

“More of the top 500 U.S. startups use AWS as their primary cloud provider than the next two providers combined,” Jassy said. “We are adding significant easy-to-core computing capacity every day.”

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

AWS still sees a fair amount of its business coming from organizations that want to move infrastructure from on-premises to the cloud, Jassy said. Naturally, AWS is also seeing a boost from the AI ​​boom, and Jassy credited the top-down functionality of AWS’s AI stack.

“We’re constantly seeing customers wanting to run their AI workloads where the rest of their applications and data reside,” Jassy said. “We also see that as customers run large AI workloads on AWS, they are adding to their core AWS footprint as well.”

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

However, AWS’s success was not enough to satisfy Amazon investors. Amazon shares fell 10% in after-hours trading after investors responded to the company’s plan to boost capital expenditures and missed Wall Street expectations for earnings per share.