Amazon Q4 AWS Revenue Up 24%, Backlog Hits $244B; Q1 Revenue Guided to $173.5B–$178.5B
Amazon’s AWS segment grew 24% in Q4 2025—the fastest pace in 13 quarters—and backlog surged 40% to $244 billion. Management guided Q1 2026 revenue of $173.5 billion–$178.5 billion and operating income of $16.5 billion–$21.5 billion despite a $1 billion LEO satellite cost headwind.
1. Q4 2025 Operating Performance
Amazon reported Q4 2025 revenues that outpaced consensus estimates while earnings per share missed targets, resulting in stock underperformance versus the internet-commerce industry. Heavy capital investments in AI infrastructure and expanded data center capacity strained operating margins as cloud rivals intensified competition.
2. AWS Growth and Backlog Expansion
The AWS unit achieved 24% year-over-year growth—the fastest in 13 quarters—and backlog jumped 40% to $244 billion. Diversification across e-commerce, cloud, advertising and streaming continues to reduce revenue concentration risk and bolster the firm’s overall growth profile.
3. Q1 2026 Guidance and Cost Headwinds
For the first quarter of 2026, Amazon projected revenue between $173.5 billion and $178.5 billion alongside operating income of $16.5 billion to $21.5 billion. Management noted a $1 billion year-over-year expense increase from the Amazon LEO satellite project, while ongoing AI integration aims to enhance personalization and logistics efficiency.