Amazon Web Services closed 2025 with its fastest quarterly growth rate in more than three years, underscoring sustained demand for cloud computing and AI-related services.

The company reported fourth-quarter revenue of $35.6 billion, representing a 24 percent increase year over year.

AWS’s operating income also rose to $12.5 billion for the quarter, up from $10.6 billion a year earlier, pushing its annual revenue run rate to $142 billion.

Amazon CEO Andy Jassy emphasized that achieving this growth at such scale sets AWS apart from its competitors.

The strong performance was driven by new contracts with major clients, including Salesforce, BlackRock, Perplexity, and the U.S. Air Force. Jassy noted that a majority of top U.S. startups continue to choose AWS as their primary cloud provider.

AWS also expanded its infrastructure aggressively, adding more than a gigawatt of power capacity to its data centers during the quarter.

Demand from enterprises migrating from on-premise systems, combined with increased AI workloads, contributed to the momentum.

Despite AWS’s results, Amazon shares fell after hours as investors focused on the company’s broader capital expenditure plans and earnings per share miss, signaling that strong cloud growth alone may not ease market concerns.

Source: Techcrunch