Amazon Web Services (AWS) has cited the dual demand from customers for its core cloud compute services and its artificial intelligence (AI) offerings as the reason why its annual revenue rose by nearly a quarter (24%) during the final three months of 2025.

The public cloud giant’s fourth-quarter (Q4) results, which cover the three months to 31 December 2025, confirm the company’s revenue hit $35.6bn during the reporting period, while its profit increased year-on-year (YoY) from $10.6bn to $12.5bn.

Amazon CEO and president Andy Jassy called out the company’s annual revenue growth rate as particularly noteworthy, as it represents the fastest amount of growth AWS has achieved in 13 quarters.

“This growth is happening because we’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” said Jassy. “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics and low-earth orbit satellites, we expect to invest about $200bn in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital.”

Furthermore, the company’s full-year results confirmed a 20% YoY jump in revenue to $128.7bn for AWS, and that profit was up from $39.8bn in 2024 to $45.6bn last year.

During a conference call, transcribed by Seeking Alpha, Jassy dug into the significance of AWS’s performance over the course of 2025 in more detail and how it compares to the results shared by its public cloud competitors.

“AWS is now a $142bn annualised run rate business, and our chips business…is now over $10bn in annual revenue run rate, growing triple-digit percentages year-over-year,” said Jassy. “As a reminder, it’s very different having 24% year-over-year growth on a $142bn annualised run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors. We continue to add more incremental revenue and capacity than others and extend our leadership position.”

To put the figures into context, data from IT market watcher Synergy Research Group confirmed that Q4 marked the ninth consecutive quarter of accelerating year-on-year growth for the cloud infrastructure services market as a whole, for which AWS is the market leader.  

“Generative AI is clearly the primary driver of these changing market dynamics,” said John Dinsdale, chief analyst at Synergy Research Group. “Among the major cloud providers, Amazon maintains a strong lead in the market, though Microsoft and Google continue to achieve substantially higher growth rates. Their Q4 worldwide market shares were 28%, 21%, and 14% respectively.”

During the AWS results conference call, Jassy said it’s not just the demand for AI that AWS’s results are reaping the benefits of, as its core cloud proposition remains a key source of revenue growth for the firm.

“We’re continuing to see strong growth in core non-AI workloads as enterprises return to focusing on moving infrastructure from on-premises to the cloud, along with AWS having the broadest functionality, strongest security and operational performance, and most vibrant partner ecosystem,” he said. “AWS continues to earn most of the big enterprise and government transitions to cloud.”

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