Visitors fill the Amazon Web Services (AWS) exhibition stand at the 2026 Hannover Messe industry trade fair on April 20, 2026 in Hannover, Germany.
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Amazon’s The cloud computing sector reported faster third-quarter growth than analysts expected.
According to the announcement, revenue rose 39% year over year to $45.98 billion, beating the consensus of $45.29 billion from analysts surveyed by Street Account. The growth rate in the second quarter was approximately 37%.
“Our core compute and storage revenue grew at the fastest pace in years,” Amazon CEO Andy Jassy said on a conference call with analysts. AWS growth rate was the highest since Q4 2021.
Amazon remains the cloud leader by revenue, but rivals Alphabet and Microsoft are also seeing faster growth. on wednesday alphabet Google Cloud business, which includes infrastructure and Google Workspace subscriptions, more than doubled in the third quarter, he said.
All major clouds have been competing to build data centers that can handle the high demand for artificial intelligence. During this quarter, AWS announced plans to expand its portfolio. Nvidia A graphics processing unit that can handle AI workloads.
AWS also acquired data analytics startup DuckLabs and signed deals with Meta and OpenAI, according to the statement.
Third-quarter operating income for the AWS segment increased 55% to $17.77 billion, beating the StreetAccount consensus of $16.97 billion.
The division now accounts for nearly 23% of Amazon’s revenue, a record number.
On Wednesday, Microsoft released its first earnings report that lists revenue from its Azure cloud in dollars. Azure is now 72% the size of AWS, up from 58% two years ago.
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