Amazon Web Services delivered revenue of $35.6 billion in the fourth quarter of 2025, up 24% year over year, marking its fastest growth rate in 13 quarters. Full-year AWS revenue reached $128.7 billion, up 20%, while operating income increased to $45.6 billion, reinforcing AWS’s role as Amazon’s primary profit engine as AI workloads continue to scale across cloud, enterprise, and public-sector deployments.
At the parent-company level, Amazon reported fourth-quarter net sales of $213.4 billion, up 14% year over year, and operating income of $25.0 billion. However, free cash flow declined sharply to $11.2 billion over the trailing twelve months, down from $38.2 billion a year earlier, driven by a $50.7 billion increase in property and equipment purchases. Management attributed the bulk of this spending to AI infrastructure, including data centers and custom silicon. The combination of heavier capital intensity, lower free cash flow, and guidance for even higher investment in 2026 appeared to weigh on investor sentiment despite strong top-line growth.
Capital investment is set to rise further. Amazon said it expects to invest approximately $200 billion in capital expenditures in 2026, with AWS accounting for the largest share. The spending reflects continued build-out of AI-optimized data centers, power and cooling infrastructure, and internally developed chips, positioning AWS for long-term demand while compressing near-term cash generation.
AWS paired this infrastructure expansion with a series of platform and silicon announcements. Trainium and Graviton custom processors now exceed a $10 billion annual revenue run rate and continue to grow at triple-digit rates. Trainium2 is fully subscribed with 1.4 million chips deployed and underpins Project Rainier, a 500,000-chip AI cluster. AWS also introduced new generations of Trainium and Graviton processors, expanded Amazon Bedrock with additional foundation models and agent frameworks, and launched AWS AI Factories to accelerate AI deployments in customer and hybrid data centers.
- AWS financial performance
- Q4 2025 revenue: $35.6 billion (+24% YoY)
- FY2025 revenue: $128.7 billion (+20% YoY)
- FY2025 operating income: $45.6 billion
- Amazon capex and cash flow
- $50.7 billion YoY increase in property and equipment purchases
- Trailing-twelve-month free cash flow: $11.2 billion (down from $38.2 billion)
- ~$200 billion in total Amazon capex planned for 2026, largely AI-driven
- AWS infrastructure and silicon
- Trainium and Graviton combined run rate above $10 billion
- 1.4 million Trainium2 chips deployed; 500,000+ in Project Rainier
- Trainium3 in production with most supply committed by mid-2026
- Trainium4 targeted for 2027 with higher FP4 compute and memory bandwidth
- AWS AI platforms
- Expanded Amazon Bedrock model portfolio and agent infrastructure
- New Nova models and Nova Forge for customer-optimized AI
- Launch of AWS AI Factories for hybrid and on-prem AI environments
“With such strong demand for our existing offerings and seminal opportunities like AI and chips, we expect to invest about $200 billion in capital expenditures across Amazon in 2026,” said Andy Jassy, President and CEO of Amazon.
