Amazon’s AWS Posts 24% Q4 Growth, 35.4% Margin, Supports $200B Capex Plan
AWS CEO Matt Garman defended Amazon’s $200 billion capital spending plan through 2026, citing persistent capacity constraints and promising that every newly produced server will be sold. AWS revenue grew 24% in Q4 while the operating margin reached 35.4%, underscoring robust profitability that supports aggressive infrastructure investment.
1. Capex Plan Defense
AWS CEO Matt Garman addressed investor concerns by defending the company’s $200 billion capital expenditure plan through 2026, emphasizing that ongoing capacity shortages across global data centers necessitate the outlay and that every server produced will find a buyer.
2. Q4 Performance Highlights
In the fourth quarter, AWS delivered 24% year-over-year revenue growth and achieved a 35.4% operating margin, reinforcing the division’s strong profit generation and providing confidence that the aggressive spending will yield returns akin to previous infrastructure buildouts.