Amazon reports Q3 AWS revenue up 20% YoY to $33B, vs. $32.42B est., and AWS operating income up 9.5% YoY to $11.4B

Amazon said Thursday that revenue in its cloud computing business increased 20% in the third quarter, exceeding analysts' estimates. — Revenue at Amazon Web Services for the third quarter totaled $33 billion.

CNBC 2025-10-31 Annie Palmer

Context & Ripple Effects

AWS entered this quarter after growth held near the high teens: Q3 2024 revenue grew 19%, followed by 19% in Q4 and 17% growth in Q1 2025. The latest result marks a return to 20% growth while moving the business to a substantially larger revenue base.

The profit picture is more mixed: operating income rose more slowly than revenue, unlike the stronger year-over-year income growth reported in Q1. That makes the balance between cloud expansion and operating leverage the key follow-through question.

First-order effects

AWS exceeded the cited revenue estimate, reinforcing Amazon's cloud business as a growing source of sales and operating profit.
Operating income increased 9.5% year over year, but lagged revenue growth, indicating that the quarter's incremental sales did not translate into profit growth at the same rate.

Second-order effects

The revenue acceleration raises the bar for rival cloud platforms to demonstrate comparable demand momentum, while AWS customers gain another signal of the platform's commercial scale.
Slower profit growth than sales puts greater focus on AWS's cost discipline as it rolls out Bedrock AgentCore capabilities and expands AI-related services.

Third-order effects

If cloud revenue can sustain faster growth at this scale while operating-income growth remains slower, cloud competition will increasingly turn on whether AI services can be commercialized with durable margins rather than on demand growth alone.
The result supports a broader shift toward measuring AI infrastructure by its conversion into recurring cloud revenue and operating profit; the available coverage does not establish how much of this quarter's growth came from AI workloads.

The trend: Hyperscalers are moving from AI infrastructure buildup toward proving that growing cloud demand can support durable AI-era unit economics.

Discussion

@bourboncap @bourboncap on x
$AMZN casually making $180 billion in a single quarter — AWS alone did $33 billion. Total revenue is up 13% YoY Aws 20% up YoY “We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Andy Jassy [imag…
@munster_gene Gene Munster on x
While September results are good news on AWS, the big picture around competition remains a challenge. Google Cloud and Azure are growing at almost 2x faster than AWS, which means they continue to lose share. $AMZN
@stocksavvyshay Shay Boloor on x
$AMZN AWS is now a $132B ARR business growing 20% the fastest pace since 2022. With 3.8 gigawatts of new capacity coming online the king of compute is back leading the AI infrastructure cycle. [image]
@stephanie_link Stephanie Link on x
All this debate about the slowing growth at AWS at $AMZN and they just beat expectations and grew at 20% - ahead of 18.5%-19% whisper. Recall, they have the largest share at 30% vs Azure at 20% and GCS at 13%. 4Q OI and TR guide also ahead.
r/wallstreetbets r on reddit
Amazon soars 10% as earnings beat estimates, company posts strong cloud growth
@munster_gene Gene Munster on x
$AMZN Robotics, 1m robots in the fulfillment network, will increase investments, very important area of investment. Worth noting underneath the topic of AI automation is the reality that people are losing their jobs. Jassy said on the call that people will remain at the heart,
@quinnypig Corey Quinn on x
Amazon dropped $35B on property and equipment this quarter alone. TTM purchases are now $120B (up 78% YoY). Free cash flow collapsed from $48B to $15B. Or to put that in English, they're printing money and immediately setting it on fire to build data centers.
@quinnypig Corey Quinn on x
And @ajassy opens his statement with “$1.8b in severance costs” so it turns out I wasn't just shitposting.
@quinnypig Corey Quinn on x
@ajassy “If it weren't for our severance payments and FTC settlement we'd have hit the high end of our guidance” is quite the statement.
@benbajarin Ben Bajarin on x
Retweeting since Jassy just said every bit of capacity they bring online they are monetizing. $AMZN the most aggressive in building out capacity in GW.
@munster_gene Gene Munster on x
$AMZN guided December revenue up by 3% and operating income up by 9%. Throw out the ranges they give on guidance. Focus on the high end because they typically come in at or above the high end. My 3% and 9% guide up is based on them hitting the high end of the ranges. That pop
@munster_gene Gene Munster on x
Return on AI at $AMZN. Check out how automation is improving operating margins. If they hit the high end of guidance for December (which they likely will), operating margin will be 12.2%. That compares to: Dec-25: 12.2% Est Dec-24: 11.3% Dec-23: 7.8% Dec-22: 1.8% Dec-21:
@stockmarketnerd @stockmarketnerd on x
There ya go Andy. AWS 20% Y/Y FXN growth vs. 18% Y/Y growth expected for $AMZN. 3 point Q/Q acceleration. Progress.
@qualityinvest5 @qualityinvest5 on x
PLEASE, pay attention to the sentiment shift on $AMZN, now that the stock's ripping again Suddenly no one's complaining about the “excessive spending” They're not falling behind on cloud anymore And Jassy's a good CEO again... [image]
@dr_gingerballs @dr_gingerballs on x
Nobody reads the earnings reports. $AMZN “ Third quarter 2025 net income includes pre-tax gains of $9.5 billion included in non-operating income (expense) from our investments in Anthropic, PBC.”
@liebermanaustin Austin Lieberman on x
$AMZN double beat an raise. AWS better than expected and the company is cutting costs. Likely big $$$ rotates into undervalued Amazon. Why it's my largest position:
@jimcramer Jim Cramer on x
I know it was a hard one to own, but look out! AMAZON is BACK
@thexcapitalist @thexcapitalist on x
$AMZN EARNINGS ARE OUT: REVENUE: $180.2B vs Est. $177.8B ✅ EPS: EPS 1.95 vs Est. 1.57 ✅ First impressions: - AWS has finally accelerated to 20% YoY growth. This was the most important thing. As Anthropic's two-gigawatt-scale AWS clusters are also coming online this quarter, [imag…
@mr_derivatives Heisenberg on x
$AMZN $252. Speechless. Stunned. Shocked. Surprised. Happy.
@realmattmoney Matt Farley on x
ATHs Amazon $AMZN after a massive revenue beat. $180B vs $177B for the quarter. On the warpath path to $1T annualized revenue. Don't sleep.
@andrewcurran_ Andrew Curran on x
Jensen's aura from the keynote still surrounds the market. Amazon cloud revenue grew by 20%. Anthropic, Google and xAI all have big model releases before Christmas. The financial and AI apocalypses have been averted yet again. At least until 2026. Until then, drink and be merry.
@danielnewmanuv Daniel Newman on x
Like I was saying 😏 $AMZN could do the whole market a favor. And it did. 💪🏻
@beth_kindig Beth Kindig on x
Amazon $AMZN reported Q3 revenue up 13% to $180.2 billion, beating estimates for $177.7 billion, while EPS of $1.95 beat estimates for $1.57, including a $9.5B gain on its Anthropic stake. AWS revenue rose 20% to $33.0 billion, beating estimates for 18% growth to $32.4 billion.
@munster_gene Gene Munster on x
$AMZN reports 20% AWS growth vs. Whisper of 18.5%. Stock up 9%. To put into perspective how focused investors are on AWS, they beat overall revenue by 1.2%, and the stock is up 9%.
@mr_derivatives Heisenberg on x
$AMZN HOLY SHIT ATH's!!!
@mindset4money_x @mindset4money_x on x
What a company. $AMZN [image]
@amitisinvesting Amit on x
dude shout out to fintwit i think most of us came together a month ago and felt $AMZN down 3% YTD while the S&P was up 15% made NO sense we all knew AWS needed a boost and if we could get that, we'd get a move well, Jassy delivered so awesome to see crowd sourced DD payoff 🚀
@patientinvestt @patientinvestt on x
AWS is REACCELERATING! I've never been this bullish! $AMZN [image]
@joecarlsonshow Joseph Carlson on x
What a spectacular week. Congrats everyone that's in Google and Amazon.
@joecarlsonshow Joseph Carlson on x
Andy Jassy dropping 20+% AWS growth after everyone on twitter had a tantrum about him is hilarious.
@stockmktnewz Evan on x
Amazon $AMZN CEO Andy Jassy just said: “AWS is growing at a pace we haven't seen since 2022, re-accelerating to 20.2% YoY. We continue to see strong demand in AI and core infrastructure, and we've been focused on accelerating capacity - adding more than 3.8 gigawatts in the past …
@amitisinvesting Amit on x
$AMZN JASSY: - WE HAVEN'T SEEN THIS TYPE OF AWS GROWTH SINCE 2022 - AWS ACCELERATES TO 20.2% AHEAD OF 18% ESTIMATES LFG !!!! +9% [image]
@patrickmoorhead Patrick Moorhead on x
Like I said..... $AMZN This does not include the 1M TPU Anthropic deal and what I anticipate will be future deals.
@dylan522p Dylan Patel on x
So many people hated on us for the AWS acceleration thesis a couple months ago And we were right of course Only we can do these calls due to our deep knowledge and inights with core research, datacenter, accelerator, and Tokenomics models. Amazon $AMZN Sales@semianalysis.com [ima…
@benbajarin Ben Bajarin on x
$AMZN beats the AWS growth expectation of 18% with 20% in the Q. Stock is up 9% AH. Good progress, let's hope each quarter it continues growth, as that is now what investors will expect.
@deitaone @deitaone on x
*AMAZON 3Q EPS $1.95, EST. $1.58 *AMAZON 3Q NET SALES $180.17B, EST. $177.82B *AMAZON 3Q AWS NET SALES $33.01B, EST. $32.39B
@kobeissiletter @kobeissiletter on x
BREAKING: Amazon stock, $AMZN, surges over +9% after posting stronger than expected Q3 2025 earnings. [image]
@stocksavvyshay Shay Boloor on x
$AMZN delivered 😏 • Sales $180.1B vs Est. $177.8B • EPS $1.95 vs Est. $1.57 • AWS Sales $33.0B vs Est. $32.4B Q4 Guidance • Sales $210B vs Est. $209B [image]
@cbusguy @cbusguy on bluesky
Takes a lot of money to create an American Wasteland — Speaking of which, when's Fallout season 2 coming out [embedded post]
NewsMax.com NewsMax.com on x
Amazon Cut 14,000 to Remain 'World's Largest Startup'
@stockmktnewz Evan on x
Amazon $AMZN CEO Andy Jassy just said when asked about Amazon's recent corporate layoffs: “The announcement that we made a few days ago was not really financially driven. And it's not even really AI driven, not right now at least. It really. It's culture. And if you grow as [imag…
@jasonmcalacanis Jason Calacanis on bluesky
“not really” is doing a lot of work in that sentence. [embedded post]
@emilprotalinski Emil Protalinski on bluesky
Oh, come on, Jassy. Your own memo said it was due to AI. [embedded post]
@s2udios @s2udios on bluesky
Amazon CEO Andy Jassy delivered an unexpected explanation for the company's decision to eliminate 14,000 corporate positions this week, attributing the cuts to “culture” rather than financial pressures or artificial intelligence automation. The announcement came during Thursday'…
@tomahawkd70 Tom on bluesky
Amazon invested into Anthropic? Now I definitely won't be using Claude AI [embedded post]

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