Amazon's AWS Posts Strongest Growth Since 2021, Driven by AI Demand
In Q2 2026, Amazon Web Services (AWS) reported revenue of $42.23 billion, surpassing analyst expectations and marking a nearly 37% year-over-year increase—the fastest growth since 2021. The cloud computing segment's performance was fueled by strong demand for AI services and chips, each generating over $25 billion in annualized revenue. AWS also announced partnerships with Meta and OpenAI to support the growing need for AI infrastructure. AWS contributed nearly two-thirds of Amazon’s total operating profit during the quarter, reporting an impressive 36.8% operating margin. Meanwhile, Microsoft's Azure reported a slower but still robust growth rate at 43%, while Alphabet's Google Cloud saw explosive quarterly revenue growth of about 82%. Analysts noted that AWS remains the dominant player in cloud computing despite fierce competition. Capital expenditures for Amazon surged to $54.21 billion during Q2, reflecting its aggressive expansion into AI infrastructure and data centers.
Topics: AI business AWS cloud computing revenue growth