AWS Delivers Its Fastest Growth in Over Three Years as Cloud and AI Demand Accelerate
Amazon Web Services (AWS) closed out 2025 with its most impressive quarterly growth performance in more than three years, underlining the continued strength of global cloud demand and the growing influence of artificial intelligence workloads.
AWS Revenue Hits $35.6 Billion in Q4
Amazon revealed in its fourth-quarter earnings report that AWS generated $35.6 billion in revenue in Q4 2025, representing a 24% year-on-year increase. This marks the cloud division’s strongest growth rate in 13 quarters.
According to the company, AWS’s annual revenue run rate has reached $142 billion, highlighting the scale at which the business is now operating. Profitability also improved, with operating income rising to $12.5 billion, up from $10.6 billion in the same quarter of 2024.
Scale Sets AWS Apart from Rivals
Speaking during Amazon’s fourth-quarter earnings call, CEO Andy Jassy emphasized that AWS’s growth carries more weight due to the size of its existing business.
“It’s very different having 24% year-over-year growth on $142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors,” Jassy said.
“We continue to add more incremental revenue and capacity than others, and extend our leadership position.”
Major Enterprise and Government Deals Drive Momentum
AWS’s strong quarterly performance was supported by new customer agreements with Salesforce, BlackRock, Perplexity, and the U.S. Air Force, along with other enterprises and government organizations.
Jassy also highlighted AWS’s dominance among emerging companies in the U.S. startup ecosystem.
“More of the top 500 U.S. startups use AWS as their primary cloud provider than the next two providers combined,” he said.
“We’re adding significant easy to core computing capacity each day.”
Data Center Expansion Continues
To support rising demand, AWS expanded its infrastructure footprint significantly during the quarter, adding more than a gigawatt of power to its global data center network in Q4 alone.
The company continues to see substantial opportunity among enterprises migrating from on-premise infrastructure to cloud-based environments, a trend that remains a key driver of long-term growth.
AI Workloads Boost Core Cloud Usage
AWS is also benefiting from the rapid acceleration of AI adoption. Jassy attributed this momentum to AWS’s comprehensive AI capabilities across infrastructure, platforms, and applications.
“We consistently see customers wanting to run their AI workloads where the rest of their applications and data are,” Jassy said.
“We’re also seeing that as customers run large AI workloads on AWS, they’re adding to their core AWS footprint as well.”
AWS Accounts for 16.6% of Amazon’s Total Revenue
During the fourth quarter, AWS contributed 16.6% of Amazon’s total revenue, which stood at $213.4 billion for the period—further reinforcing the strategic importance of the cloud business within the broader Amazon group.
Investor Concerns Temper the Results
Despite AWS’s strong performance, Amazon’s overall earnings report failed to fully satisfy investors. Shares of the company fell 10% in after-hours trading after Amazon announced plans to increase capital expenditures and reported earnings per share below Wall Street expectations.
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