Amazon Web Services, the cloud computing arm of Amazon, reported revenue growth of 39% in the most recent quarter. According to coverage of the results, the figure topped what analysts had expected, and it arrived as other large cloud providers were also reporting faster expansion.
Wire reports said new agreements signed during the quarter with Meta and OpenAI contributed to the stronger-than-forecast revenue. Both companies are heavy users of computing capacity, and their deals illustrate the demand AWS is seeing from firms building and running artificial intelligence systems.
Beyond the quarterly numbers, Amazon laid out a longer-range picture for the business. Reporting on the company's remarks indicates it expects AWS to grow at a rate above 40% in both 2027 and 2028. It also set out an ambition for the unit to reach $1 trillion in revenue within a window of five to ten years.
The company framed the AI boom as a 'once-in-a-lifetime' opportunity, according to the coverage, and used that framing to justify the scale of the targets. The remarks suggest management sees AI workloads as a durable source of demand for cloud infrastructure rather than a short-lived spike.
AWS is one of the largest providers of cloud computing services, renting out servers, storage and software tools to businesses and developers. Its growth rate is closely watched by investors because it serves as a gauge of corporate technology spending and of how quickly AI adoption is translating into revenue for the biggest platforms. Reports noted that competing cloud businesses were also accelerating, so the 39% pace reflects a market in which several large players are expanding at once.
The sources supplied for this story do not give the absolute revenue figure for the quarter, the consensus estimate, or details on how shares reacted, so those points are not covered here.
Why it matters for traders
AWS is a major profit and growth engine for Amazon, and its results are read as a signal for cloud and AI infrastructure spending across the technology sector. A beat on revenue, together with growth targets above 40% for 2027 and 2028, gives market participants a concrete benchmark for judging Amazon and rival cloud providers. Deals with Meta and OpenAI also show where large AI customers are directing spending.