AWS Grows 28% to $37.6B in Q1; Amazon Backlog Hits $364B, UPS Cuts Deliveries
AMZN•Amazon Web Services revenue rose 28% year-over-year to $37.59 billion in 1Q26, boosted alongside combined hyperscaler sales of $84.8 billion, while Amazon’s committed cloud backlog reached $364 billion with 62% tied to Trainium chip orders. Separately, UPS will cut low-margin deliveries for Amazon in favor of higher-margin clients.
1. Hyperscaler Cloud Growth and AWS Performance
Combined revenue for the leading cloud providers surged to $84.8 billion in 1Q26, up 39% year-over-year, with Amazon Web Services contributing $37.59 billion, a 28% increase. Amazon’s committed cloud backlog reached $364 billion, of which 62% is tied to Trainium chip commitments, while AWS AI revenues topped $15 billion, driving sustained margin strength near 38%.
2. UPS Delivery Strategy Shift
UPS is reducing its low-margin parcel deliveries for Amazon as it pivots toward higher-margin commercial customers. This strategic move may alter Amazon’s logistics footprint and could influence future shipping costs and delivery capacity for the e-commerce giant.
