Amazon Web Services CEO Matt Garman delivers the keynote address at the AWS re:Invent conference in Las Vegas on December 2, 2025.
Noah Berger | Amazon Web Services | Getty Images
Amazon announced Thursday that its cloud division’s revenue rose nearly 24% in the fourth quarter, beating analyst expectations.
Amazon Web Services had revenue of $35.58 billion, the statement said. Analyst estimates compiled by Street Account were for $34.93 billion. AWS accounted for approximately 17% of Amazon’s total revenue in the quarter.
Operating profit within AWS was $12.47 billion, beating the StreetAccount consensus of $11.91 billion and accounting for the majority of the parent company’s profit. AWS’s operating margin expanded slightly to 35% from 34.6% in the third quarter.
Amazon is the leader in the cloud infrastructure market, introduced almost 20 years ago. google and microsoft Business is growing rapidly in this sector and, according to many analysts, further growth is expected from artificial intelligence services.
on wednesday, alphabet Revenue from the Google Cloud Group, which includes the Google Workspace productivity software bundle and Google Cloud Platform infrastructure, rose about 48%, the fastest growth since 2021, Microsoft announced last week. Revenue from Azure and other cloud services increased 39%.
During the fourth quarter, AWS introduced Nova Forge, which provides access to Amazon-generated AI models in the training phase for advanced customization, and announced a $38 billion spending commitment from OpenAI.
All major cloud providers are rushing to provide more AI infrastructure to model builders like Anthropic and OpenAI. AWS CEO Matt Garman said Tuesday that AWS will add nearly 4 gigawatts of computing power in 2025.
“For reference, this is double what we were in 2022, when we were an $80 billion annual run rate business,” Amazon CEO Andy Jassy said on a conference call with analysts. “We expect it to double again by the end of 2027.”
Last week, Microsoft CEO Satya Nadella said the company had delivered nearly 1 gigawatt of online usage by the fourth quarter.
Jassy said Amazon expects to spend $200 billion in capital spending in 2026, primarily on AWS. This amount far exceeded Visible Alpha’s consensus of $148.86 billion.
“Some of that is for core workloads, non-AI workloads, because those workloads are growing at a faster pace than we expected,” Jassy said. “But most of it is in AI, where we have a lot of growth and a lot of demand.”
WATCH: Amazon’s revenue focuses on AWS
