Amazon Web Services crushed first-quarter expectations, posting a 28% revenue jump to $37.6 billion, driven by a surge in enterprise AI spending. The result topped the 25% rise analysts had forecast.
Overall net sales hit $181.5 billion. The stock rose 5% in after-hours trading.
CEO Andy Jassy struck an upbeat tone on the earnings call, saying the company is "unusually well positioned" for the AI-driven growth inflection. He confirmed Amazon's 2026 capital expenditure estimate of $200 billion remains unchanged.
Amazon deepened its AI ties this month, making OpenAI's latest models available on AWS, and striking a deal to invest up to $25 billion in Anthropic. The Claude creator also committed to spending more than $100 billion on AWS over ten years.
Capital expenditures hit $44.2 billion in Q1, up 76% year-over-year. The company forecast current-quarter revenue between $194 billion and $199 billion, above analyst estimates of $188.9 billion.
Rival Google Cloud grew 63% to $20 billion, slightly exceeding expectations but raising questions about whether AWS's lead is thinning.