Catenaa, Friday, October 31, 2025- Amazon third-quarter earnings beat estimates as its cloud business grew faster than expected, with the company spending more on AI.
The results come just a day after rivals Microsoft and Google announced their own results, with both companies saying they’ll spend more on AI data centers going forward.
“You’re going to see us continue to be very aggressive in investing in capacity because we see the demand,” CEO Andy Jassy said on the company’s earnings call with analysts.
Amazon stock rose 11% on Friday to a record high following the results, and the stock is by over 12.8% so far this year.
For the quarter, Amazon reported earnings per share (EPS) of $1.95 on revenue of $180.2 billion, better than analysts’ expectations of EPS of $1.58 and revenue of $177.8 billion.
Amazon’s AWS brought in $33.01 billion in revenue versus an anticipated $32.4 billion.
The company also said adoption of its Trainium2 AI chip has become a multibillion-dollar business that grew 150% quarter over quarter, and that it launched its Project Rainier AI cluster with 500,000 Trainium 2 chips.
While Microsoft counts OpenAI among its most important AI clients, and Google has Gemini, Amazon relies on Anthropic for massive AI exposure. And the company splits that with Google, which also provides cloud computing services to Anthropic
On Wednesday, Amazon said the AI startup signed up to use 1 million custom Amazon chips to train and run its AI models. While that’s a win for Amazon, Anthropic announced a similar deal with Google just last week.
On the company’s earnings call, Jassy said Amazon’s plan to cut 14,000 corporate jobs was driven by overhiring and didn’t reflect moves to have AI carry out work.
“The announcement we made a few days ago was not really financially driven, and it’s not even really AI driven — not right now, at least. It’s culture,” Jassy said.
