Amazon reported a strong quarterly performance, underpinned by continued demand for cloud computing services, with Amazon Web Services (AWS) delivering accelerated growth as enterprises and governments increased spending on core and AI-driven workloads.
Chief executive Andrew Jassy described the period as a “strong growth” quarter, with the company reporting revenue of $213.4 billion, operating income of $25 billion, and trailing 12-month free cash flow of $11.2 billion.
Commenting on the outlook, Jassy said, “We’re seeing strong growth and with the incremental opportunities available to us in areas like AI, chips, low earth orbit satellites, quick commerce and serving more consumers’ everyday essentials needs, we have a chance to build an even more meaningful business in Amazon in the coming years with strong return on invested capital, and we’re investing to do so.”
AWS revenue growth accelerated to 24% during the period, taking the cloud unit to a $142 billion annualized revenue run rate. Jassy noted the expanding contribution of Amazon’s custom silicon business, stating, “AWS is now a $142 billion annualized run rate business, and our chips business, inclusive of Graviton and Trainium is now over $10 billion in annual revenue run rate, growing triple-digit percentages year-over-year.”
The company also announced a series of new customer and partnership agreements spanning multiple industries. These include collaborations with OpenAI, Visa, NBA, BlackRock, Lyft, United Airlines, DoorDash, Salesforce, the U.S. Air Force, Adobe, AT&T, and S&P Global, among others. Jassy said AWS continues to strengthen its position among emerging companies, adding, “More of the top 500 U.S. start-ups use AWS as their primary cloud provider than the next two providers combined.”
Beyond cloud services, Amazon is increasing investment across several retail and logistics initiatives. These include the expansion of Amazon Haul, enhancements to ultra-fast delivery capabilities, and a broader focus on Everyday Essentials. The company also plans to open more than 100 additional Whole Foods Market stores.
Looking ahead, Amazon expects capital spending to remain elevated. Jassy said, “We expect to invest about $200 billion in capital expenditures across Amazon, but predominantly in AWS because we have very high demand, customers really want AWS for core and AI workloads, and we’re monetizing capacity as fast as we can install it.”
The results highlight the growing role of AWS and AI-related infrastructure in Amazon’s overall performance, as the company continues to scale capacity to meet sustained enterprise demand.
