Amazon Shares Surge 10% on Strong Q3 Earnings Driven by AWS Cloud Growth

Amazon reported strong third-quarter earnings in 2025, with revenue increasing 13% to over $180 billion and net profit rising 39% to $21.2 billion, surpassing analyst expectations. The company’s cloud division, Amazon Web Services (AWS), was a key driver, posting $33 billion in revenue—a 20% year-over-year growth and its strongest since 2022—boosted by high demand for AI and core infrastructure services. AWS’s growth outpaced competitors like Microsoft and Google, helped by significant capital expenditures of $35.1 billion to expand data centers and build AI chips. Amazon’s stock surged about 10% in after-hours trading following the earnings release, reflecting investor confidence in the company’s future, especially in cloud computing and AI investments. CEO Andy Jassy emphasized Amazon’s focus on scaling AWS capacity and highlighted the success of the Trainium2 AI chip, which is fully subscribed. Additionally, Amazon’s broader business, including advertising and e-commerce, also contributed to the robust financial performance, with the company investing heavily in AI to enhance operational efficiency.