"Amazon reported earnings for its third quarter on Thursday and investors were tickled, sending the stock up more than 13 percent after hours. The company beat on most metrics, and posted 20 percent revenue growth in its AWS cloud computing business, which delivered $33 billion in sales. "Customers want to be running the core and AI workloads in AWS, given its stronger functionality, security, and operational performance," said CEO Andy Jassy on the earnings call."
"As points of comparison, Google Cloud reported Q3 2025 revenue of $15.2 billion, a 34 percent increase year over year. Microsoft Intelligent Cloud (which includes Azure and other segments) for fiscal Q1 2026 reported $30.9 billion in revenue, an increase of 28 percent. Azure and other cloud services revenue within the Intelligent Cloud segment increased 40 percent, with no specific dollar figure provided."
"Amazon's earnings bonanza [PDF] follows the company's recently announced decision to cut 14,000 jobs, at a cost of "$1.8 billion in estimated severance costs primarily related to planned role eliminations." Speaking on the company's earnings call, Jassy said the job cuts were not related to AI - at least right now. Rather, he said, Amazon cut jobs to normalize and harmonize company culture that has drifted in the wake of numerous acquisitions."
Amazon reported strong third-quarter results, sending the stock up over 13% after hours. AWS posted 20% revenue growth, delivering $33 billion in sales, and remains the primary growth engine. CEO Andy Jassy emphasized customer preference for AWS for core and AI workloads due to functionality, security, and performance, and cited scale confidence. Google Cloud and Microsoft Azure grew faster percentage-wise from smaller bases, with Google Cloud at $15.2 billion and Microsoft Intelligent Cloud at $30.9 billion. Amazon announced 14,000 job cuts costing $1.8 billion and said reductions aimed to harmonize culture. Free cash flow fell to $14.8 billion due to increased capital purchases.
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