Amazon Web Services reported $35.6 billion in revenue for the fourth quarter of 2025, a 24 percent year-on-year increase that represents the segment’s strongest quarterly growth rate in more than three years. This performance stemmed from sustained cloud demand, new customer agreements, and expansion in AI workloads.
The $35.6 billion figure marked the largest growth rate for AWS in 13 consecutive quarters. Amazon stated that the business segment’s annual revenue run rate reached $142 billion. Operating income for the quarter rose to $12.5 billion, up from $10.6 billion in the fourth quarter of 2024. During the company’s fourth-quarter earnings call, CEO Andy Jassy addressed the significance of this growth. He said, “It’s very different having 24 percent 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 added, “We continue to add more incremental revenue and capacity than others, and extend our leadership position.” These remarks underscored AWS’s scale relative to competitors.
Several new agreements contributed to the quarter’s results. AWS secured deals with Salesforce, BlackRock, Perplexity, and the U.S. Air Force, along with other companies and government entities. Jassy highlighted AWS’s dominance among startups, stating, “More of the top 500 U.S. startups use AWS as their primary cloud provider than the next two providers combined.” He also noted, “We’re adding significant easy-to-core computing capacity each day.” These partnerships expanded AWS’s customer base across enterprise, financial, AI, and government sectors.
Infrastructure investments supported this expansion. AWS added more than one gigawatt of power to its data-center network during the fourth quarter. Enterprise migrations played a key role, as Jassy explained that a substantial portion of AWS’s business derives from companies shifting infrastructure from on-premise environments to the cloud. The AI sector provided additional momentum. Jassy attributed this to AWS’s comprehensive AI stack, which spans from foundational models to deployment tools.
Customers increasingly consolidate workloads on AWS. Jassy observed, “We consistently see customers wanting to run their AI workloads where the rest of their applications and data are.” He continued, “We’re also seeing that as customers run large AI workloads on AWS, they’re adding to their core AWS footprint as well.” This pattern integrates AI with existing cloud operations, driving further adoption.
AWS generated 16.6 percent of Amazon’s total $213.4 billion revenue for the fourth quarter. Amazon shares declined 10 percent in after-hours trading following the report. Investors responded to the company’s announcement of increased capital expenditures and results that missed Wall Street expectations for earnings per share.
