Andy Jassy Forecasts AWS Could Reach $1 Trillion in Revenue
Amazon CEO Andy Jassy has stated that Amazon Web Services (AWS) could eventually surpass $1 trillion in annual revenue. In the most recent quarter, AWS achieved $169 billion in annual recurring revenue and grew sales by 37% year-over-year—the fastest pace since 2021. The growth is being driven largely by increased demand for artificial intelligence (AI) computing power, with major partnerships like that of AWS and AI lab Anthropic contributing to the surge. If AWS maintains an average annual revenue growth rate of around 20%, it could reach $1 trillion in ARR as early as 2036. AWS is already a highly profitable segment for Amazon, with trailing-12-month operating margins at 37%. At that margin level and assuming $1 trillion in sales, AWS would generate between $300 billion to $400 billion in annual earnings. This could significantly boost Amazon's overall profitability as the company continues expanding its cloud infrastructure.
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