Amazon Web Services concluded 2025 with its most robust quarterly expansion in over three years. On Thursday, the company disclosed that its cloud service division generated $35.6 billion in revenue during the fourth quarter of 2025. This represents a 24% increase compared to the previous year and stands as the segment's highest growth rate in 13 quarters. Amazon noted that the annual revenue run rate for this business segment has reached $142 billion.

Additionally, the cloud service reported a rise in operating income, climbing to $12.5 billion in the fourth quarter from $10.6 billion during the same period in 2024.

During the company's fourth-quarter earnings call, Amazon CEO Andy Jassy highlighted the significance of this growth, stating, "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." He added, "We continue to add more incremental revenue and capacity than others, and extend our leadership position."

This growth in the fourth quarter was driven by new agreements with various companies and government entities, including Salesforce, BlackRock, Perplexity, and the U.S. Air Force. Jassy also emphasized AWS's strong position among emerging businesses, noting, "More of the top 500 U.S. startups use AWS as their primary cloud provider than the next two providers combined." He further mentioned, "We’re adding significant easy to core computing capacity each day."

In the fourth quarter, AWS expanded its data center network by adding more than a gigawatt of power. Jassy observed that a substantial portion of AWS's business continues to come from enterprises transitioning their infrastructure from on-premise solutions to the cloud.

Naturally, AWS is also benefiting from the current artificial intelligence surge. Jassy attributed this advantage to AWS's comprehensive AI stack functionality, explaining, "We consistently see customers wanting to run their AI workloads where the rest of their applications and data are." He also noted, "We’re also seeing that as customers run large AI workloads on AWS, they’re adding to their core AWS footprint as well."

AWS accounted for 16.6% of Amazon's total fourth-quarter revenue, which stood at $213.4 billion. Despite this success, AWS's performance did not fully satisfy Amazon's investors. The company's shares dropped by 10% in after-hours trading following the announcement of plans to increase capital expenditures and the failure to meet Wall Street's earnings per share expectations.