How AI, data and enterprise spending are driving AWS revenue growth
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How AI, data and enterprise spending are driving AWS revenue growth
Amazon Web Services posted its fastest growth in over three years, with Q4 2025 revenue up 24 per cent to $35.6 billion. Strong enterprise cloud deals and rising AI workloads pushed AWS to a $142 billion annual run rate, reinforcing its lead in AI-driven cloud demand.
Amazon Web Services ended 2025 with its fastest quarterly growth in more than three years, showing how strong demand for cloud services and artificial intelligence is reshaping enterprise spending.
According to Amazon’s latest earnings report, AWS recorded $35.6 billion in revenue in the fourth quarter of 2025, a 24 per cent year-on-year rise. This was the cloud unit’s strongest growth in 13 quarters. Amazon said AWS now has an annual revenue run rate of $142 billion.
Operating income also increased. AWS posted $12.5 billion in operating profit, up from $10.6 billion in the same quarter a year earlier, according to company filings.
AI demand
Amazon CEO Andy Jassy said the scale of AWS growth matters as much as the percentage increase.
Speaking during the earnings call, Jassy said that delivering 24 per cent growth on a $142 billion annual run rate highlights how much new business AWS is adding compared to rivals.
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The fourth-quarter jump was supported by new enterprise and government contracts, including agreements with Salesforce, BlackRock, Perplexity and the U.S. Air Force, according to the company.
Jassy also said that AWS remains the main cloud provider for many fast-growing companies. More than half of the top 500 US startups use AWS as their primary cloud platform, he added.
AI workloads are expanding core cloud usage
AI has become a major driver of cloud spending, and AWS is benefiting from this shift. According to Amazon, customers prefer to run AI systems where their existing data and applications already sit.
Jassy said companies deploying large AI models on AWS often expand their broader cloud usage at the same time. This includes storage, computing power and networking services that support AI operations.
AWS also expanded its physical infrastructure. During the fourth quarter, the company added more than one gigawatt of power capacity across its data centre network, highlighting continued investment in long-term cloud demand.
AWS growth strong
AWS accounted for 16.6 per cent of Amazon’s total revenue, which stood at $213.4 billion in the fourth quarter, according to the earnings report.
Despite strong cloud performance, investor sentiment was mixed. Amazon shares fell nearly 10 per cent in after-hours trading, as markets reacted to higher capital spending plans and earnings that missed analyst expectations.
Still, analysts note that AWS remains central to Amazon’s future, especially as companies continue to move from on-premise systems to cloud platforms and increase spending on AI-driven tools.
