Amazon posts best operating margin ever as AWS accelerates for sixth straight
AWS revenue hit $46 billion, up 39.3%, driving Amazon's operating margin to a record 13.9%.
Amazon Web Services posted a massive quarter with revenue of $46 billion, up 39.3 per cent from a year earlier. AWS operating income alone hit $17.8 billion, more than Amazon's total operating income of $17.4 billion in the same quarter last year.
Amazon's overall operating margin reached 13.9 per cent, the best the company has ever posted. AWS growth has now accelerated for six quarters running.
The company posted net sales of $201.9 billion across all divisions, up 12 per cent year over year. However, the market initially punished Amazon's stock after the earnings, sending it down 7 per cent, unhappy about the company's massive spending and lower-than-expected fourth-quarter guidance.
- 39.3% year over year
- AWS revenue growth
- 13.9%
- Operating margin record
- $17.8 billion
- AWS operating income
- Negative $42.4 billion
- Trailing 12-month free cash flow
Why it mattersAWS's surge shows the cloud business is the main driver of Amazon's profit machine, but the company is investing heavily at the cost of short-term free cash flow.
AustraliaFor Australian investors and businesses using AWS, the strong growth and massive AI investment suggest the platform will remain dominant and expand its AI services in coming years.
✓ Claims checked against the source. checked 2 h ago
