AWS Q1 Income Report 2025

Amazon's The cloud business grew slowly than expected in the first quarter, with a third consecutive revenue mistake.

Revenue from Amazon Web Services rose 17% to $29.27 billion, while analysts surveyed on the streets expect to be $29.42 billion. Growth slowed down from 18.9% in the fourth quarter.

AWS, which accounts for about 19% of its parent company's total revenue, is the world's most important cloud infrastructure provider. MicrosoftIts top competitor announced first-quarter Azure Cloud growth and guidance for businesses that agreed on Wednesday. GoogleLast week, the third-place provider reached an agreement on cloud revenue.

Despite the more challenging signals of the economy, cloud computing still shows healthy growth. Automakers and retailers have begun preparing for higher costs, or due to tariffs on goods imported to the United States announced by U.S. President Donald Trump in early April.

Amazon said AWS operating revenue totaled $11.55 billion in the first quarter, up from the $10.52 billion STEEMACCOUNT consensus. The division has an operating margin of 39.5%, the largest since 2014 at least.

During the quarter, AWS said it was launching services for streaming video games and formed a proxy AI team.

Capital infrastructure rose to $24.3 billion in the quarter, up about 74% year-on-year. In February, management demanded about $10 billion in capital expenditure in 2025, some of which will be used in data centers, including chips that can train and run AI models from humans and other cloud clients.

Andy Jassy, ​​Amazon CEO and former head of AWS, said in an April letter to shareholders that AI costs will fall over time, partly because Amazon’s custom chips represent an alternative Nvidia Graphics processing unit.

Jassy said on a conference call with analysts that the AWS AI business has revenues of billions of dollars per year.

“I think if we have more capabilities, we might help more customers and generate more revenue for the business,” he said. “In the next few months, we have more instances of Trainium2 and next-generation NVIDIA.” Trainium2 was announced in 2023 and is the next-generation chip for Amazon's training AI models.

Jassy said that over the past six years, AWS has diversified from China.