Key Points
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Amazon Web Services (AWS) is the largest cloud provider globally, holding 29% of the market share.
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AWS experienced a 20% growth in the third quarter of 2025, marking its highest increase in 11 quarters.
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AWS reported a $200 billion backlog of business at the end of the third quarter.
Amazon (NASDAQ: AMZN) will report its fourth-quarter earnings on February 5, 2026, with a focus on AWS sales as a key indicator of its business performance. AWS has faced competition from Microsoft and Alphabet but saw a reacceleration in growth during the third quarter of 2025.
The company’s AI services, housed within AWS, are vital to its strategy, as management claims they are launching features faster than competitors. This development could play a significant role in maintaining its market position.
