Amazon Cloud Services Achieve 20% Sales Growth in Q3 2025
Seattle, Friday, 31 October 2025.
Amazon Web Services reported a 20% sales increase, surpassing expectations and reaching $33 billion in Q3 2025, amidst growing competition from Google Cloud and Microsoft Azure.
Amazon’s Q3 2025 Cloud Performance
Amazon Web Services (AWS), the cloud computing arm of Amazon.com Inc. (NASDAQ: AMZN), reported a 20% increase in sales for the third quarter of 2025, achieving revenue of $33 billion. This performance surpassed Wall Street’s expectations, which were set at $32.42 billion [1][2]. AWS accounts for approximately 60% of Amazon’s total operating income, illustrating its critical role in the company’s financial health [2].
Competitive Landscape and Market Dynamics
Despite AWS’s robust growth, the cloud services market remains intensely competitive. Google Cloud and Microsoft Azure reported revenue increases of 34% and 40%, respectively, during the same period [1][3]. These figures underscore the competitive pressures AWS faces as businesses increasingly rely on cloud infrastructure to drive their digital transformations [1][4].
Strategic Investments and Future Outlook
Amazon has been proactive in expanding its cloud capabilities, evidenced by the launch of its $11 billion AI data center, Project Rainier, on 29 October 2025, designed to support AI model training and operations [1]. Additionally, Amazon plans to double its AWS capacity by 2027, reflecting the growing demand for cloud services and the company’s commitment to maintaining its market leadership [5].
Market Reactions and Stock Performance
The strong performance of AWS has positively impacted Amazon’s stock, which rose more than 11% in early trading on 31 October 2025. This surge reflects investor confidence in Amazon’s ability to sustain its growth trajectory amid fierce competition from tech giants like Microsoft and Google [4][6].