Amazon.com reported a 28% jump in cloud revenue for the first quarter, reaching $37.6 billion, surpassing Wall Street estimates of $36.61 billion. The growth is driven by strong enterprise spending on cloud computing as companies accelerate AI adoption.
Revenue at Amazon Web Services (AWS) rose 28%, beating analysts' average estimate of a 25.08% increase.
The upbeat results come as Amazon deepens its partnerships with AI leaders OpenAI and Anthropic. On Tuesday, Amazon made all of OpenAI's models and its coding agent, Codex, available on AWS. Last week, Amazon committed up to $25 billion in Anthropic, which in turn pledged over $100 billion in AWS spending over the next decade.
Earlier this month, Amazon disclosed that AI services at AWS are generating over $15 billion in annualized revenue. This has helped push Amazon's stock up 14% year-to-date, making it one of the best performers among the "Magnificent 7" tech giants.
CEO Andy Jassy stated in his shareholder letter that much of the company's 2026 spending will be monetized over 2027 and 2028. Amazon has set a target of roughly $200 billion in capital spending this year to reassure investors that its AI infrastructure investments will generate near-term returns.
At the retail side, Amazon is expanding same-day delivery to more towns and small cities, and is sharpening its focus on grocery delivery to compete with Walmart and Kroger.