AWS Keeps Trucking As Amazon Crushes Expectations

The News: Shares of Amazon climbed as much as 11% in extended trading on Thursday after smashing earnings expectations for the fourth quarter.

The company’s market cap surged above $1 trillion after hours on the back of the powerhouse earnings report. In doing so, it joined Apple, Alphabet and Microsoft, which have all crossed the trillion-dollar threshold.

Here are the key numbers:

  • Earnings per share: $6.47 per share vs. expectations of $4.03 per share, according to analysts surveyed by Refinitiv
  • Revenue: $87.44 billion vs. expectations of $86.02 billion, per Refinitiv
  • Amazon Web Services: $9.95 billion vs. expectations of $9.81 billion, according to FactSet

Read the full news coverage on CNBC.

Analyst Take: Amazon didn’t only beat earnings, but it absolutely smashed expectations. This was a surprise as many feared the infrastructure costs associated with same day shippings would eat up margin, but clearly the per share earnings were significant on a narrow revenue beat.

While the overall quarter for Amazon was sound, I wanted to take a few moments to zoom into AWS and its performance this quarter as many were watching to see if growth would stagnate.

AWS Does Better Than Expected Despite Slowing Growth

Some analysts had AWS growth expectations at 28% or less, I was always bullish that it would still come in over 30 and it did posting 34% growth this quarter as the company nears its first $10 Billion quarter for its profitable cloud business. This number represents the slightest of growth slow downs compared to its 35% growth in the fiscal third quarter.

The slow down from triple digits to high double digits to mid double digits is to be expected. Microsoft got a bit of a boost when its earnings just yesterday put Azure at 62%, bouncing back from 59% last quarter, but for all of the cloud providers, the growth percentage will start to go down as the overall number goes up. This is a law of large numbers thing, just ask Facebook.

Overall, the revenue accounted for about 11% of Amazon’s overall revenue, but represents nearly 2/3 of the company’s operating income–an impressive contributor to the bottom line.

AWS Made Several Critical Announcements In The Quarter

AWS was busy in the fiscal fourth quarter making significant announcements during the company’s flagship reInvent.

A few of the standouts for me were its new Graviton2 processors, the general availability of Outposts, the introduction of AWS Local Zones and a number of new announcements for app developers, AI services, database and analytics.

The company provides a full breakdown of its announcements in its quarterly highlights.

The key here is to pay attention to the vast innovation and expansion of capabilities. With a focus on IaaS and PaaS, AWS continues its approach in meeting the customer where they are and we are seeing this with the attention to areas like AI, hybrid cloud and high availability database services.

Overall Impressions on AWS in the Fourth Quarter

AWS had another sound quarter where it continued to win business, expand its capabilities and deliver significant contributions to the company’s bottom line. While Azure has come on strong and I expect it to continue to push AWS, I see the two companies continuing to separate from the pack and both will benefit from the growth of Cloud and the competition.

I expect the trend of growth, investment and expansion to continue for AWS as the cloud’s momentum carries into the next decade.

Futurum Research provides industry research and analysis. These columns are for educational purposes only and should not be considered in any way investment advice.

Other insights from the Futurum Research team:

Honeywell and Verizon Partner to Accelerate Smart Grid

IBM Announces Change at the Top: Driving The Company Into The Future

Cloud Momentum Powers Another Huge Quarter for Microsoft

Image Credit: Amazon

Author Information

Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.

From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.

A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.

An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.

Related Insights
At GTC Berlin, NVIDIA Puts the AI Factory in an Actual Container
October 22, 2026

At GTC Berlin, NVIDIA Puts the AI Factory in an Actual Container

Nick Patience, VP and Practice Lead for AI Platforms at Futurum, shares his insights on NVIDIA GTC Berlin, where DSX POD, OpenShell, and physical AI anchored a pitch to Europe...
NVIDIA's 104-Qubit JUPITER Simulation Makes GPU Supercomputers the Design Platform for Fault-Tolerant Quantum
October 21, 2026

NVIDIA's 104-Qubit JUPITER Simulation Makes GPU Supercomputers the Design Platform for Fault-Tolerant Quantum

Brendan Burke, Research Director at Futurum, examines NVIDIA's record 104-qubit fault-tolerant quantum simulation on JUPITER and why GPU supercomputers are becoming the quantum industry's design platform....
EE Hits 80% 5G+ Coverage: Is AI-RAN the Next Frontier?
October 21, 2026

EE Hits 80% 5G+ Coverage: Is AI-RAN the Next Frontier?

BT Group's EE network reaches 80% UK population with 5G+, while AI-RAN trials and enterprise AI adoption surge, with 52% of enterprises deploying automated root cause analysis....
Microsoft Sovereign Cloud Shifts the Focus to Customer-Run AI
October 20, 2026

Microsoft Sovereign Cloud Shifts the Focus to Customer-Run AI

Nick Patience, VP and Practice Lead for AI Platforms at Futurum, shares his insights on Microsoft Sovereign Cloud's push into customer-run AI and why public cloud controls still leave Europe's...
Intel D-Series GPUs Make HBM Optional for Agentic Inference
October 19, 2026

Intel D-Series GPUs Make HBM Optional for Agentic Inference

Brendan Burke, Research Director at Futurum, shares insights on Intel D-series GPUs, 46,000-core Xeon agentic racks, open prompt routing, and the photonics roadmap Intel detailed at the 2026 OCP Global...
SolarWinds Avior: Goal-Driven Agentic AI for Hybrid IT Ops
October 16, 2026

SolarWinds Avior: Goal-Driven Agentic AI for Hybrid IT Ops

Alastair Cooke, Research Director, Hybrid Cloud & Infrastructure at Futurum, examines SolarWinds' launch of Avior, a goal-driven agentic platform that enables IT teams to define objectives, coordinate specialized agents, and...

Book a Demo

Welcome

The vision behind everything in Futurum’s Custom Research practice is this: research should show you what is happening, what comes next, and what to do about it. It should be personal to each audience, easy for people to grasp, and structured so LLMs can reason over it accurately. And it should be fast and turnkey; you want answers now, not another project to carry for quarters.

Whether you are defining business, channel, or go-to-market strategy; evaluating vendors or justifying ROI; or commissioning research to fill an emerging market need, we have your back, with a program that answers your questions with the objectivity and credibility to drive real decisions.

To do it, we bring unmatched data to bear: Futurum research, surveys, and market projections; validated market feeds; ETR’s 15 years of insight from 10,000 technology decision-makers; G2’s buyer and user data; and what our analysts hear every day. Add leading primary collection, from AI-moderated voice interviews to surveys and analyst-led interviews, all turnkey, and every project comes out credible, nuanced, and actionable.

And we don’t just drop the results in your lap. For internal work, we provide analyst-led sessions, interactive dashboards, and a range of formats. For market-facing work, Futurum delivers turnkey activation and amplification that actually gets seen, by people and by LLMs, through our media and share of voice. This is research that moves decisions and markets.

We will meet you wherever you are, from a fast-turn brief to a multi-year program, and shape the work to your goals, timeline, and budget. The right program for your moment.

If any of this is useful, I would love to talk.

Benjamin Brown, VP Custom Research, Futurum Research

Benjamin Brown

VP, Custom Research · The Futurum Group

Newsletter Sign-up Form

Get important insights straight to your inbox, receive first looks at eBooks, exclusive event invitations, custom content, and more. We promise not to spam you or sell your name to anyone. You can always unsubscribe at any time.

All fields are required






Thank you, we received your request, a member of our team will be in contact with you.