Amazon has unveiled exceptional financial results with its cloud computing division generating $33 billion in third-quarter revenue, representing a 20% year-over-year increase that marks the fastest growth rate the business has experienced since 2022. The performance exceeded Wall Street expectations of $32.42 billion and helped propel total company revenue to $180.17 billion, beating analyst predictions of $177.82 billion. Per-share earnings of $1.95, significantly above forecasted $1.58, prompted shares to surge 9% during extended trading as investors responded positively to the results.
CEO Andy Jassy highlighted the cloud division’s performance as a significant milestone, noting the return to growth rates not seen in recent years and emphasizing the business’s importance to the company’s overall strategic direction. The earnings call featured extensive discussion of artificial intelligence initiatives across the company’s platforms, with executives showcasing new AI-powered features including intelligent shopping assistants and enhanced capabilities for enterprise customers. The company is also advancing its autonomous transportation ambitions, with plans to launch robotaxi testing in Washington DC before year-end as part of its Zoox vehicle program.
The impressive financial metrics come in the aftermath of a major infrastructure failure earlier this month that caused widespread disruptions to Amazon’s cloud services, affecting millions of users globally for multiple hours. The technical glitch brought down websites, applications, and critical systems including hospital electronic medical records, providing an unwelcome reminder of how deeply Amazon’s services have become embedded in everyday digital infrastructure. The incident highlighted both the company’s dominant market position and the potential vulnerabilities associated with such concentration of essential services.
Amazon continues to face intense competition in the cloud computing market from rivals who have reported strong growth and captured market share through strategic initiatives around artificial intelligence. Microsoft’s Azure platform has been particularly successful, benefiting from a high-profile partnership with a leading AI research organization that has attracted customers and driven revenue growth contributing to stronger stock performance. Google Cloud has similarly reported solid gains, intensifying competitive dynamics in a market that remains crucial for enterprise computing.
The company has confirmed plans to eliminate 14,000 corporate positions despite reporting record revenues and strong profitability, a decision that has generated significant scrutiny. Leadership has framed the workforce reduction as a cultural initiative designed to create a more agile organization, explicitly denying that the decision is financially motivated or driven by AI automation. However, this explanation has generated skepticism given the company’s substantial investments in artificial intelligence and previous executive statements suggesting AI would reduce workforce requirements, raising questions about the consistency of public communications regarding strategic priorities.