Amazon Web Services Cloud Revenue Surges by 29% in Third Quarter

Amazon Web Services exceeded analyst expectations with an $11.6 billion revenue for its cloud business, a massive 29 percent jump from the same quarter last 2019.

Its growth has been consistent for the past quarter, in a stable 29 percent line. As the demand for at-home work rises, the company’s leading web and cloud services became on-demand. Leading companies relying on AWS soared this pandemic, like the famous video conferencing firm Zoom and Slack.

Both government agencies and private entities rely on AWS for computing, storage, and networking tools, in order to operate websites and applications. The company extends help to customers with unique workload requirements, and make the most out of the cloud resources available.

Amazon Web Services Cloud Revenue Surges

AWS disclosed an operating income of $3.54 billion, increased by 56 percent from last year’s data, and more than FactSet’s consensus of $3.45 billion. The operating margin jumped by 30.5 percent, compared to the second quarter’s aggressive increase of 31.1 percent.

AWS continued its role to increase profit for Amazon, accounting for more than $3.5 billion from the overall $6.2 billion in operating income. This third-quarter data drew the line of being the biggest profit driver for the 57 percent of overall operating income.

For years, web services showed a massive growth of 46 percent steady from 2018. Revenue chalks up further, as the company introduces a new cloud offering, even beating its biggest competitor in the market, Azure.

Although Microsoft hasn’t published any revenue report for its cloud computing service. However, analysts estimated Azure’s revenue to $6.3 billion, comprising of only 54 percent of AWS’ revenue in the same period.

On Tuesday, Oct. 27, Microsoft published a report on its revenue and dropped data for ‘commercial cloud’—including Azure and other business components, roughly $15.2 billion in sales. This is for 2020’s first-quarter data, and $50 billion annual commercial cloud profit.


Although the massive $11.6 billion AWS revenue is impressive, it’s still Amazon’s slowest developing business. In fact, Democratic staff members of House Judiciary submitted a report on how Amazon uses its revenue from AWS to fund less profitable parts of its business.

Other portions of Amazon grew faster than AWS, with North America revenue hitting 39 percent increase, and international profit reached 37 percent. These pieces of data confirmed that AWS is ‘laggard’ than other components of the multinational giant.