AWS revenue continues to rise as demand for the cloud remains high

Amazon Web Services ended 2025 with the strongest earnings growth in more than three years.

The company also reported on Thursday that its cloud services business posted a record $35.6 billion in revenue in the fourth quarter of 2025. This figure shows a year-on-year increase of 24% and the fastest growing business sector in 13 quarters. The annual revenue of the business sector is $142 billion, according to Amazon. The cloud service also saw an increase in revenue from $12.5 billion in the fourth quarter compared to $10.6 billion in the same period in 2024.

“It’s very different to have 24% year-over-year on a run price of $142 billion than to have a big increase in smaller segments, as is the case with our competitors,” Amazon CEO Andy Jassy said in the company’s fourth quarter earnings call. “We continue to add more revenue than others, and expand our leadership.”

This fourth quarter growth was fueled by new contracts with Salesforce, BlackRock, Perplexity, and the US Air Force, among other companies and government agencies.

“More of the top 500 US startups use AWS as their cloud provider than the two combined,” Jassy said. “We’re increasing the power of simple computers every day.”

AWS also added more than a gigawatt of capacity to its data network in the fourth quarter.

Jassy said AWS continues to see much of its business from businesses looking to move infrastructure from on-premises to the cloud. AWS, is also seeing a boost from the AI ​​boom, and Jassy praised AWS’s top-to-down AI stack performance.

“We see customers wanting to run their AI operations where all their operations are,” Jassy said. “We’re also seeing that as customers run more AI services on AWS, they’re also adding to their AWS footprint.”

AWS made up 16.6% of Amazon’s $213.4 billion revenue in the fourth quarter.

AWS’ success wasn’t enough to appease Amazon’s investors, however. Amazon shares fell 10% in early trading after investors reacted to the company’s plans to raise expenses and miss Wall Street’s expectations for earnings per share.