Amazon Web Services Revenue Growth Accelerates to Five-Year High Amid AI Demand
Amazon's cloud division, Amazon Web Services (AWS), reported a significant acceleration in growth during the third quarter, reaching its fastest pace in nearly five years. AWS revenue climbed 39% year-over-year to $46 billion, contributing to an annual revenue run rate of approximately $184 billion. This surge is largely driven by intense demand for artificial intelligence services, including computing capacity and AI inference tools like Amazon Bedrock. Despite the robust top-line growth and a 55% increase in operating income to over $17 billion, Amazon's stock faced pressure as investors weighed these gains against massive capital expenditures. The company has raised its 2026 capital spending forecast to $220 billion to support infrastructure needs. However, the long-term outlook remains strong with a contracted revenue backlog of $578 billion and leadership projecting AWS could become a trillion-dollar business within the next decade.
Topics: Amazon Web Services Artificial Intelligence AWS revenue acceleration Cloud Computing Q3 Earnings
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Part of the story Amazon Web Services Reports 39.3% Growth and $578 Billion Backlog in Q3 (3 articles)