Amazon Web Services ended 2025 with its strongest quarterly growth rate in more than three years.
The company reported Thursday that its cloud services business is on record $35.6 billion in revenue in the fourth quarter of 2025. This figure marks a 24% year-on-year increase and the largest growth rate in the business segment in 13 quarters. The annual revenue level for the business segment is $142 billion, according to Amazon. The cloud service also increased operating revenue from $12.5 billion in the fourth quarter compared to $10.6 billion in the same period in 2024.
“It is very different to have a 24% year-over-year growth in the $142 billion annualized run rate than to have a higher percentage growth in a meaningfully small language, which is small with our competitors,” Amazon CEO Andy Jassy, said during the company’s fourth-quarter earnings call. “We continue to increase revenue and additional capacity more than others, and extend our leadership position.”
The fourth-quarter growth was fueled by new agreements with Salesforce, BlackRock, Perplexity and the US Air Force, among other companies and government entities.
“More than 500 US startups use AWS as their primary cloud provider than the next two providers combined,” Jassy said. “We’re adding simple core computing capacity every day.”
AWS also added more than a gigawatt of power to its data center network in the fourth quarter.
Jassy said AWS is still seeing a fair amount of business from companies looking to move their infrastructure from on-premises to the cloud. AWS, of course, is seeing a boost from the AI boom as well, and Jassy credits AWS’ top-to-bottom AI stack functionality.
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“We’re constantly seeing customers who want to run AI workloads where other applications and data are,” Jassy said. “We’ve also seen that as customers run large AI workloads on AWS, they also increase their core AWS footprint.”
AWS made up 16.6% of Amazon’s total $213.4 billion revenue in the fourth quarter.
AWS’s success isn’t enough to appease Amazon’s investors. Amazon shares fell 10% in after-hours trading after investors reacted to the company’s plans to boost capital spending and missed Wall Street’s expectations for earnings per share.