Amazon Web Services (AWS) has reported its strongest growth since 2022, posting a 20% revenue increase year over year despite a recent global outage that disrupted services from banks to smart home devices. The cloud division generated $33 billion in net sales in the third quarter, exceeding Wall Street expectations of $32.42 billion.
CEO Andy Jassy said the performance reflects unprecedented growth for AWS. “AWS is growing at a pace we haven’t seen since 2022,” he stated in a release accompanying the earnings report. The results pushed Amazon’s stock up nearly 9% in after-hours trading.
Amazon’s overall revenue reached $180.17 billion for the quarter, beating analysts’ projections of $177.82 billion, while earnings per share rose to $1.95, surpassing the $1.58 forecast. Executives highlighted that the gains were driven by AWS, which remains a critical backbone of the internet despite increasing competition from Google Cloud and Microsoft Azure.
Earlier this month, an AWS outage temporarily took websites, apps, and essential systems offline, demonstrating how dependent many industries and consumers are on Amazon’s cloud services. Despite this disruption, AWS continues to grow, cementing its position as a leader in cloud computing.
Amazon is also focusing on artificial intelligence and autonomous technologies. The company highlighted the integration of AI tools like the Rufus shopping assistant and ongoing development of its Zoox robotaxi business, which will begin testing in Washington DC later this year. Jassy emphasized that AI is transforming the company’s operations, allowing faster innovation across platforms and services.
At the same time, Amazon confirmed plans to lay off 14,000 corporate employees, with further cuts expected. The company framed the job reductions as part of a strategy to operate more like a nimble startup, rather than as a direct consequence of AI deployment. Jassy clarified during the earnings call that the layoffs are “culture-driven” and not financially motivated or currently AI-driven.
Amazon’s strong AWS growth comes as the company faces broader challenges in its e-commerce business, including exposure to shifting tariff policies and competition from other tech giants capitalizing on AI advancements. Analysts noted that AWS’s performance helps offset slower growth in other areas and positions Amazon for continued market leadership in cloud computing.
Despite the global outage earlier this quarter, Amazon’s results demonstrate resilience and the growing importance of cloud infrastructure and AI integration for the company’s long-term strategy. With AWS leading growth and AI projects underway, Amazon aims to strengthen its position against competitors and maintain momentum in both technology and e-commerce markets.
