Amazon’s cloud business continued to drive strong financial performance in the last quarter of 2025, with Amazon Web Services (AWS) reporting one of its best revenue expansions in over three years.
In the fourth quarter of 2025, AWS pulled in $35.6 billion in revenue, representing a 24 % year-over-year increase, the fastest growth rate AWS has seen in thirteen quarters. On an annualised basis, that puts AWS’s revenue run rate at roughly $142 billion.
The surge in cloud demand stems from enterprises accelerating moves to remote computing infrastructure and increasing use of AI-powered workloads. AWS benefits from a broad suite of services spanning core cloud computing to advanced machine learning and AI tools, which have helped it secure major contracts with organisations across industries.
Growth was also supported by ongoing innovation in cloud and AI technologies, from custom silicon chips like Trainium and Graviton (which have achieved combined revenue run rates of over $10 billion), to expanded AI services and managed models that enable customers to run complex workloads more efficiently.
AWS also boosted its operating income along with revenue, contributing a significant portion of Amazon’s overall profitability. In the same period, AWS’s operating income rose to $12.5 billion, up from $10.6 billion a year earlier.
Cloud computing now stands as a key pillar within Amazon’s diversified business model. While the company’s total fourth-quarter revenue reached $213.4 billion, with growth across retail and advertising, AWS’s performance was one of the standout contributors to that total.
The financial statement further showed that while retail and advertising remain important, cloud computing continues to be a cornerstone of the company’s growth strategy, driven by enterprises seeking scalable, flexible infrastructure for AI and digital transformation.
Meanwhile, Amazon executives have highlighted that strong enterprise demand for cloud services, especially those supporting complex AI tasks, has reinforced AWS’s role as a central growth engine. Analysts expect that continued demand for flexible, scalable cloud infrastructure will keep AWS revenue rising as companies increasingly shift workloads from on-premises systems to the cloud.
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