AWS saw 17% revenue growth in Q1, missing analyst expectations but exceeding operating income

From CNBC: 2025-05-01 17:34:00

Amazon’s cloud business, AWS, saw revenue growth of 17% in the first quarter, slightly missing analyst expectations. This segment accounted for 19% of the company’s total revenue. Despite this, AWS operating income exceeded consensus at $11.55 billion, with an operating margin of 39.5%, the widest since 2014.

Competitors like Microsoft and Google also reported their cloud growth, with Microsoft exceeding consensus and Google falling slightly below expectations. AWS is still the top provider of cloud infrastructure globally.

AWS announced the launch of a service for streaming video games and the formation of an agentic artificial intelligence group during the quarter. Amazon CEO Andy Jassy anticipates lowering AI costs for customers over time with the introduction of custom chips as an alternative to Nvidia GPUs.

Capital infrastructure spending for AWS reached $24.3 billion in the quarter, up 74% year over year. Jassy highlighted that AWS has diversified away from China for components in the past six years. The company is also investing in data centers to support AI models training and running for clients.



Read more at CNBC:: AWS Q1 earnings report 2025