Amazon’s cloud unit, Amazon Web Services (AWS), reported $42.2 billion in revenue for the second quarter, marking a 37% increase from $30.9 billion a year ago, according to fortune.com. This growth represents AWS’s fastest pace in 18 quarters and its fifth consecutive quarter of accelerating growth. The company’s overall net sales rose 20% to $200.6 billion, while operating income surged to $27.5 billion.
AWS added more than $4.6 billion in revenue quarter over quarter, with operating income reaching $16.6 billion, up 64% from $10.2 billion a year earlier, on a 39.4% margin, up from 32.9%. CEO Andy Jassy highlighted that AWS’s backlog, representing future revenue agreements, grew to $496 billion. He noted that AWS’s annualized revenue run rate is now $169 billion, which would place it 24th on the Fortune 500 list if it were a standalone company.
The strong performance of AWS underscores its dominant position in the cloud market, contributing significantly to Amazon’s overall profitability. The company’s net income reached $62.6 billion, or $5.75 per diluted share, compared with $18.2 billion, or $1.68 per share, a year ago. This figure includes $53.4 billion in non-operating income primarily from Amazon’s investments in Anthropic. Amazon’s growth in cloud, advertising, and other business segments reflects its broad market reach and diversified revenue streams.
Amazon’s total capital expenditure for the year is projected to reach $220 billion, as the company continues to invest heavily in expanding capacity to meet demand. AWS’s performance in the second quarter highlights its critical role in Amazon’s business strategy and its impact on the cloud computing industry.