AWS Hits 39% Growth — Fastest Cloud Surge in Nearly Five Years
Amazon Web Services (AWS) delivered a blockbuster third quarter, posting revenue of $46 billion—a 39.3% year-over-year increase and the cloud division’s fastest growth rate in nearly five years.
Reported on October 29, 2026, the results sent shockwaves through the tech industry. However, Amazon’s overall earnings of $1.89 per share fell short of analyst expectations of $1.97, sending the stock down more than 7% in after-hours trading.
AWS now runs at an annualized revenue rate of $184 billion, driven by surging demand for AI cloud infrastructure. Amazon CEO Andy Jassy expressed confidence in the unit’s trajectory, projecting AWS revenue growth of over 40% in both 2027 and 2028.
AWS also generated $17.8 billion in operating income for the quarter, representing an operating margin of approximately 38.7%.
The cloud boom is being fueled in large part by enterprise AI adoption. Amazon’s Bedrock platform saw token volume surge nearly 17 times year over year. Amazon has committed roughly $220 billion in capital expenditure for 2026, underscoring its ambition to compete with Microsoft Azure and Google Cloud in the AI infrastructure race.
Source: GeekWire — AWS growth hits 39%, its fastest in nearly five years