Amazon has reported exceptional third-quarter financial results with total revenue reaching $180.17 billion, exceeding Wall Street expectations of $177.82 billion, driven primarily by robust performance in its cloud computing division. The cloud services business generated $33 billion in revenue with a 20% year-over-year growth rate, surpassing analyst predictions of $32.42 billion and marking the strongest expansion since 2022. Earnings per share of $1.95, well above forecasted $1.58, prompted shares to jump 9% in extended trading.
CEO Andy Jassy highlighted the cloud division’s acceleration as a significant milestone, noting the return to growth rates not seen in recent years. The quarterly presentation featured extensive discussion of artificial intelligence initiatives across platforms, including intelligent shopping assistants and enhanced capabilities for enterprise customers. The company is also advancing autonomous transportation goals, with plans to launch robotaxi testing in Washington DC before year-end.
The strong financial performance comes despite a major infrastructure failure earlier this month that caused widespread disruptions, affecting millions of users globally for multiple hours. The technical glitch brought down websites, applications, and critical systems including hospital electronic records, demonstrating how deeply Amazon’s services have become embedded in everyday infrastructure. The incident highlighted both the company’s dominant market position and potential risks associated with such concentration.
Amazon continues to face intense competition in the cloud computing market from rivals who have reported strong growth through strategic initiatives around artificial intelligence. Microsoft’s Azure platform has been particularly successful, benefiting from a partnership with a leading research organization that has attracted customers and driven revenue growth contributing to superior stock performance. Google Cloud has similarly posted solid gains, escalating competitive dynamics.
The company has confirmed plans to eliminate 14,000 corporate positions despite reporting record revenues, a decision that has generated significant scrutiny. Leadership has characterized the workforce reduction as a cultural initiative designed to create a more agile organization, explicitly denying financial motivation or AI-driven automation. However, this explanation has generated skepticism given substantial investments in artificial intelligence and previous statements suggesting AI would reduce workforce requirements, raising questions about consistency in communications.