Amazon’s cloud unit, AWS, finished 2025 with an annualized revenue run rate of approximately $132 billion, representing over 50 percent of the company’s operating income despite contributing less than 20 percent of net sales. In its most recent quarterly report, AWS grew revenue by 28 percent year-over-year on a constant-currency basis, driven by sustained enterprise adoption of generative AI workloads and new storage offerings. The segment’s gross margin continued to exceed 65 percent, underscoring its role as Amazon’s primary profitability lever as e-commerce margins remain under pressure from logistics investments.

After reaching an all-time high in late October, Amazon shares retraced roughly 10 percent and now trade essentially flat year-over-year. Technical analysis highlights a critical resistance zone in the $3,300–$3,350 range, which the stock has failed to clear on multiple attempts since November. Evercore ISI recently named Amazon a top pick for 2026, citing resilient consumer spending in its North American retail operations and accelerating AWS growth. Analysts surveyed by the firm model 15 percent revenue growth next fiscal year, with operating margins expanding by 200 basis points as higher-margin services continue to scale.