Amazon’s cloud business grows almost 37%, but slows from last quarter

Amazon’s cloud business grows almost 37%, but slows from last quarter


Amazon’s cloud unit grew 36.5% year over year in the first quarter, a bit faster than analysts projected. But Amazon shares were down about 9% in after-hours trading, as investors focused on the e-commerce giant’s $3.8 billion overall net loss.

The cloud business results point to lighter but still brisk demand for computing, storage and database services delivered from faraway server farms. Amazon Web Services’ revenue growth slowed from 39.5% in the fourth quarter. Meanwhile, AWS’ fiercest rivals, Microsoft’s Azure and Alphabet’s Google Cloud Platform, have maintained constant growth or decelerated slightly.

Amazon disclosed in its quarterly earnings announcement that AWS revenue totaled $18.44 billion in the quarter, above the $18.27 billion consensus among analysts polled by StreetAccount. That works out to about 16% of Amazon’s total revenue.

Adam Selipsky, CEO of Amazon Web Services, speaks during the CERAWeek by S&P Global conference in Houston on March 8, 2022.

Aaron M. Sprecher | Bloomberg | Getty Images

And the cloud isn’t just another quickly expanding business for Amazon. At Amazon, cloud means profit. AWS threw off $6.52 billion in operating income in the first quarter, up almost 57% and higher than the $5.62 billion StreetAccount consensus. Amazon’s total operating income was $3.67 billion in the quarter, meaning that the overall business would have lost even more money were it not for the profitable AWS.

AWS’ operating margin widened to 35.3% from 29.8% in the fourth quarter.

Amazon introduced AWS in 2006, before Microsoft Azure or the Google Cloud Platform, and in 2020 AWS led the market with around 41% share, according to research firm Gartner.

In the quarter AWS said Stellantis, the automaker previously known as Fiat Chrysler, will draw on its cloud services for in-car dashboard software and electronics retailer Best Buy will use more AWS tools.

WATCH: The enterprise ‘pie’ is growing, says Evercore ISI’s Materne



Source

Tesla investors are growing wary of Elon Musk’s futuristic promises
Technology

Tesla investors are growing wary of Elon Musk’s futuristic promises

Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC. Kevin Dietsch | Getty Images At Tesla, vehicle sales are slumping, profits are thinning and revenue from regulatory credit sales are poised to dry up due to Republican-led […]

Read More
Tesla plans ‘friends and family’ car service in California, regulator says
Technology

Tesla plans ‘friends and family’ car service in California, regulator says

A vehicle Tesla is using for robotaxi testing purposes on Oltorf Street in Austin, Texas, US, on Sunday, June 22, 2025. Tim Goessman | Bloomberg | Getty Images In an earnings call this week, Tesla CEO Elon Musk teased an expansion of his company’s fledgling robotaxi service to the San Francisco Bay Area and other […]

Read More
Meta names OpenAI’s Shengjia Zhao as chief scientist of AI Superintelligence Lab
Technology

Meta names OpenAI’s Shengjia Zhao as chief scientist of AI Superintelligence Lab

Meta CEO Mark Zuckerberg makes a keynote speech during the Meta Connect annual event, at the company’s headquarters in Menlo Park, California, on Sept. 25, 2024. Manuel Orbegozo | Reuters Meta CEO Mark Zuckerberg on Friday said Shengjia Zhao, the co-creator of OpenAI’s ChatGPT, will serve as the chief scientist of Meta Superintelligence Labs. Zuckerberg […]

Read More