AWS Q4 Cloud Revenue Up 24% to $35.6B, AWS 16.6% of Amazon Revenue

AWS reported fourth-quarter revenue of $35.6 billion, a 24% year-over-year increase, its strongest quarterly growth in over three years. Annualized run rate for its cloud services is $142 billion, with operating income rising from $10.6 billion to $12.5 billion. The growth was driven by new agreements with Salesforce, BlackRock, Perplexity and the U.S. Air Force, and AWS added over a gigawatt of compute capacity. AWS accounted for 16.6% of Amazon’s $213.4 billion revenue in Q4. Despite strong cloud performance, Amazon shares fell 10% in after-hours trading as the company plans to boost capital expenditures and missed Wall Street’s EPS expectations.