Amazon Web Services (AWS) has reported its most substantial quarterly revenue growth in over three years, with cloud service revenue reaching $35.6 billion in Q4 2025, marking a 24% year-on-year increase. This surge in revenue, the highest in 13 quarters for AWS, has pushed its annual revenue run rate to $142 billion. The operating income also saw a significant rise from $10.6 billion in Q4 2024 to $12.5 billion in Q4 2025.
AWS CEO Andy Jassy highlighted the company’s unique position, stating, ‘It’s very different having 24% year-over-year growth on $142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors.’ The growth was attributed to new partnerships with prominent companies like Salesforce and significant government contracts, such as the U.S. Air Force.
As cloud adoption continues to increase, AWS remains a top choice for enterprises transitioning from on-premise infrastructure to the cloud. Additionally, the AI sector has been a key driver of growth for AWS, with Jassy noting the comprehensive AI functionality embedded within AWS’s services.
AWS’s strategic expansion included the addition of over a gigawatt of power to its data center network in Q4, further enhancing its service capabilities. The sustained growth and offerings of AWS underscore its leadership in the cloud services market, solidifying its position as a preferred cloud provider for a wide range of businesses and government entities.
Source: TechCrunch