Amazon shares surge as cloud business accelerates

Amazon shares jumped nearly 14% in after-hours trading after the company reported its fastest growth in cloud revenue in almost three years and issued a stronger-than-expected sales outlook for the fourth quarter.

Amazon Web Services – the company’s most profitable division – posted 20% revenue growth in Q3, outpacing market forecasts and reinforcing momentum in corporate spending on artificial intelligence and cloud infrastructure. AWS now accounts for roughly 60% of Amazon’s operating income, even though it contributes just over 15% of total revenue.

The company projected Q4 net sales between $206 billion and $213 billion, above consensus expectations, and signaled higher capital expenditures in 2026 as it accelerates investment in data-center capacity and AI capabilities. Amazon has already spent nearly $90 billion this year, largely on AI infrastructure.

Despite the upbeat outlook, Amazon continues restructuring efforts: the firm has eliminated 14,000 corporate jobs with total cuts expected to reach around 30,000. At the same time, advertising revenue – another fast-growing business line – jumped 24% to $17.7 billion, adding to the company’s growth engine alongside cloud services.