Source: Sharecast
AWS revenue climbed almost 24% in the fourth quarter to $35.58bn, ahead of market expectations, and accounted for about 17% of total sales, while total revenues came in at $213.39bn, up from $187.79bn last year and marginally ahead of consensus, marking the fourth straight quarter in which Amazon has topped revenue expectations.
Operating income from its AWS unit rose to $12.47bn, also beating forecasts, with its operating margin nudging up to 35% from 34.6% in the prior quarter. At group level, Amazon reported adjusted earnings of $1.95 per share, slightly below the $1.98 expected after three consecutive beats.
However, shares traded lower prior to the open after chief executive Andy Jassy said Amazon expects to invest around $200bn in 2026, largely directed toward AWS, a figure well above consensus estimates of $148.86bn.
"Some of it is for our core workloads, which are non-AI workloads, because they're growing at a faster rate than we anticipated," Jassy said. "But most of it is in AI, and we just have a lot of growth, a lot of demand."
As of 0910 GMT, Amazon shares were down 10.48% in pre-market action at $200.84 each.
Reporting by Iain Gilbert at Sharecast.com