{"id":59322,"date":"2026-07-31T18:14:17","date_gmt":"2026-07-31T18:14:17","guid":{"rendered":"https:\/\/www.europesays.com\/news\/59322\/"},"modified":"2026-07-31T18:14:17","modified_gmt":"2026-07-31T18:14:17","slug":"amazons-surging-cloud-business-is-growing-at-a-breakneck-pace-chart","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/news\/59322\/","title":{"rendered":"Amazon’s surging cloud business is growing at a breakneck pace: Chart"},"content":{"rendered":"\n

Amazon’s (AMZN<\/a>) AWS business has entered a new orbit. <\/p>\n

The company’s key cloud computing business notched a 37% sales surge in the second quarter<\/a>, a growth rate acceleration of 8 percentage points sequentially. Gains were powered by strength in both core and AI services as artificial intelligence speeds up customers’ cloud migrations and drives greater usage across the platform. <\/p>\n

What’s more, AWS Margins surged 520 basis points from the previous year to 38.1%. <\/p>\n

\"AWS<\/a> Yahoo Finance <\/p>\n

Executives on the earnings call cited a positive correlation between AI spending and core service demand. <\/p>\n

AWS’s backlog was $496 billion, with growth of about 100% year over year. Management noted the potential for AWS to eventually reach $1 trillion in revenue at scale with compelling margins. <\/p>\n

The stats on AWS right now are stunning. <\/p>\n

AWS revenue over the past 12 months was higher than the revenue of 474 companies in the S&P 500 (^GSPC<\/a>), Creative Planning strategist Charlie Bilello pointed out. The business has almost doubled its revenue in under four years. <\/p>\n

“Amazon’s results reinforced our thesis that AWS is benefiting from AI demand and capacity gains, which is translating to revenue outperformance and stronger margins,” KeyBanc analyst Justin Patterson wrote in a note. “While capex will continue ramping, we believe the combination of AI demand and improving Retail margins should support underlying operating profit and EPS growth.” <\/p>\n

Amazon stock rose 13%<\/a> in early trading on Friday as AWS drove Amazon’s better-than-expected quarter. <\/p>\n

For the quarter, Amazon delivered earnings per share of $5.75 on revenue of $200.6 billion. Analysts were anticipating earnings per share of $1.82 and sales of $197 billion. <\/p>\n

Free cash flow turned negative, with an outflow of $7.6 billion, a 142% decline year over year, as the company spends billions on AI infrastructure. <\/p>\n

But as long as those investments are powering AWS upside, all looks forgiven. <\/p>\n

“Bottom line: AWS strength with backlog at a record $496 billion, demand continuing to outpace capacity, accelerating revenue, ongoing ecommerce strength with Anthropic-cherry-on-the-top gains continues to argue for long-term upside,” Guggenheim analyst Simeon Siegel said. <\/p>\n

Brian Sozzi<\/a> is Yahoo Finance’s Executive Editor, host of the Power Players with Brian Sozzi<\/a> podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi<\/a>, Instagram<\/a>, and LinkedIn<\/a>. Tips on stories? Email brian.sozzi@yahoofinance.com. <\/p>\n

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