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Q3 Earnings: Andy Jassy on why AWS growth keeps accelerating

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Q3 Earnings: Andy Jassy on why AWS growth keeps accelerating

On Amazon’s third quarter earnings call , Amazon CEO Andy Jassy explained how the AWS flywheel is driving demand across core and AI workloads:

In AWS, our plan is working. Despite lapping a comparable year-over-year period where we added a lot of capacity, AWS grew 39.3% year over year, accelerating for the sixth straight quarter, our fastest growth in nearly five years. Backlog is $578 billion, growing triple digits year over year, and well diversified.

We're installing an AI accelerator about every 14 seconds, and almost as fast as we install capacity, customers are gobbling it up. Our Core compute and storage revenue grew at their fastest rates in several years. Our operating margins have long been strong on our Core offering, but rapidly improving on the AI side, too (well ahead of where they were on Core at a similar time of evolution)—even with heightened component costs (like memory) and significant depreciation from the capex we’re investing. We continue to accelerate our capex payback, and have even more conviction than we already had that the investment we’re making in AWS will yield a much larger revenue and free-cash-flow generating business than we would have imagined a couple years ago, with strong return on invested capital.

Q3 Earnings: Andy Jassy on why demand for Amazon’s custom chips keeps growing

Amazon’s chips business continues to grow triple-digit percentages year over year, and revenue commitments for Graviton and Trainium have each increased more than 20x year over year.


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