What’s Behind AWS’ 24% Revenue Jump?

Key Highlights:

  • AWS now runs at a $142 billion annual revenue run rate.
  • AWS revenue hits $35.6 billion in Q4 2025, up 24% year-on-year.
  • Fastest quarterly growth for AWS in over three years.
  • Enterprise cloud migration and AI workloads drive demand.

AWS revenue climbed to $35.6 billion in the fourth quarter of 2025, marking a 24% year-on-year increase and its fastest growth in more than three years. The surge matters because it shows enterprise cloud demand remains strong, even as companies scrutinize tech spending and scale AI workloads.

Amazon Web Services now operates at a $142 billion annual revenue run rate, according to its parent company, Amazon. Operating income also jumped to $12.5 billion, up from $10.6 billion a year earlier, underscoring the profitability of the cloud unit.

Reason for fastest growth in 13 quarters?

The fourth-quarter acceleration came from a mix of large enterprise deals and public-sector contracts. AWS signed new agreements with companies such as Salesforce, BlackRock, Perplexity, and the U.S. Air Force.

During the earnings call, Amazon CEO Andy Jassy highlighted the scale advantage AWS holds. He said generating 24% growth on a $142 billion run rate reflects deeper enterprise adoption, not just early-stage expansion.

AWS also added more than one gigawatt of power capacity to its global data-center network in Q4, reinforcing its ability to support growing compute-heavy workloads.

How AI workloads are reshaping demand

Beyond traditional cloud migration, AI is becoming a major growth engine. Jassy said customers increasingly prefer to run AI workloads where their existing applications and data already live.

That trend benefits AWS’s full-stack AI approach, spanning infrastructure, chips, data services, and model tooling. As customers scale AI usage, they also expand their core cloud footprint, deepening long-term dependency on AWS infrastructure.

AWS now accounts for 16.6% of Amazon’s total quarterly revenue, highlighting its central role in the company’s business model.

What investors think about AWS performance

Despite AWS’s strong showing, Amazon shares fell 10% in after-hours trading. Investors reacted to higher capital expenditure plans and earnings per share that missed Wall Street expectations.

Still, the latest results confirm one thing clearly: AWS revenue continues to grow at scale, driven by enterprise cloud migration, AI adoption, and sustained infrastructure investment.

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