Amazon Web Services CEO Matt Garman speaks at the AWS re:Invent conference in Las Vegas on Dec. 4, 2024.
Amazon's cloud group grew recorded revenue growth of 18% in the second quarter, slightly ahead of analysts' estimates.
Amazon Web Services continues to lead the cloud infrastructure market, but is facing intensifying pressure from Microsoft and Google , as all three companies ramp up investments in artificial intelligence to take advantage of booming demand.
Microsoft and Google reported better-than-expected cloud results for the latest quarter, with higher growth rates than Amazon.
On Wednesday, Microsoft CEO Satya Nadella said revenue from Azure and other cloud services exceeded $75 billion in the fiscal year ending June 30, with growth in the quarter of 39%. It's the first time Microsoft has provided a dollar figure for the business. Last week, Alphabet reported revenue of $13.62 billion for its cloud computing business, a 32% increase from a year ago.
AWS' revenue for the second quarter totaled $30.87 billion, Amazon said on Thursday. Analysts polled by StreetAccount had expected $30.8 billion. AWS now represents 18% of Amazon's revenue.
The cloud remains a profit center for Amazon. AWS generated $10.2 billion in second-quarter operating income, trailing the average analyst estimate of $10.9 billion, according to StreetAccount. Amazon's total operating income was $19.2 billion.
During the quarter, AWS said it would open a data center region in Chile before 2027, and PepsiCo announced a multi-year agreement that involves moving workloads to the Amazon cloud.
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