### Amazon's Q3 Earnings Report: A Record-Breaking Surge Driven by Cloud Growth Amazon's third-quarter earnings report, released on October 30, 2025, showcased remarkable financial performance, primarily fueled by the robust growth of its cloud computing division, Amazon Web Services (AWS). The company reported a **20% increase in AWS revenue**, reaching **$33 billion**, which significantly exceeded analyst expectations and alleviated concerns regarding its competitive position in the AI sector. This stellar performance led to a surge in Amazon's stock price, which soared by **over 13%** in after-hours trading, marking a record high for the company [https://finance.yahoo.com/news/amazon-stock-soars-to-record-high-as-aws-growth-powers-q3-results-155934016.html][https://finance.yahoo.com/news/amazon-shares-soar-as-ai-boom-093023700.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAC8pBXxp09hJNpfrQ_qHB3UY98zA2JWfwF1crlJruo9DD-ncu_HkXde9wEpedNPcfRw9eRLj-cNe59v8TftC6aazbDfa9u464eeUSKJhoSX6Mjz2tOggsPK8M71XKexhScY1ybwjLT6cFytFy2RDfYPyKbONkCk4kdZvzoCPBWBY]. ### Breakdown of Amazon's Q3 Performance and Market Response 1. **Earnings and Revenue Growth**: - Amazon reported higher sales and earnings, surpassing both top and bottom-line estimates. - The company's total revenue was bolstered by a **24% growth in its advertising business**, which reached **$17.7 billion** in Q3 [https://www.storyboard18.com/brand-marketing/amazons-ad-business-grows-24-to-17-7-billion-in-q3-as-cloud-beats-expectations-83509.htm]. 2. **AWS Performance**: - AWS's revenue growth of **20%** was the fastest rate in nearly three years, indicating strong demand for cloud services, particularly in AI development [https://www.devdiscourse.com/article/technology/3679514-amazons-cloud-surge-a-paradigm-shift-amidst-e-commerce-challenges]. - CEO Andy Jassy highlighted that this growth pace had not been seen since 2022, reflecting a significant recovery and expansion in the cloud sector [https://www.cnbc.com/2025/10/30/amazon-amzn-q3-earnings-report-2025.html]. 3. **Market Reaction**: - Following the earnings report, Amazon's stock experienced a notable increase, with shares rising by **12%** in premarket trading on October 31, 2025 [https://www.cnbc.com/2025/10/31/amazon-amzn-stock-earnings-revenue-ai-cloud.html?amp_kit=1&usqp=mq331AQIUAKwASCAAgM=]. - The positive outlook and strong performance in cloud services helped ease investor fears regarding the company's position in the competitive AI landscape [https://www.devdiscourse.com/article/technology/3679942-amazons-cloud-surge-a-game-changer-in-the-ai-race]. ### Key Data Points Supporting Amazon's Q3 Success - **AWS Revenue**: $33 billion, a **20% increase** year-over-year. - **Advertising Revenue**: $17.7 billion, reflecting a **24% growth**. - **Stock Price Increase**: Over **13%** surge in after-hours trading post-earnings report. - **Capital Expenditure Forecast**: Increased to **$125 billion** for the year, indicating confidence in future growth [https://www.cnbc.com/2025/10/30/amazon-amzn-q3-earnings-report-2025.html?amp_js_v=0.1&usqp=mq331AQIUAKwASCAAgM=]. ### Conclusion: Amazon's Strong Q3 Performance Signals Future Growth In summary, Amazon's Q3 2025 earnings report highlights a **transformative period** for the company, driven by exceptional growth in its cloud computing and advertising sectors. The **20% growth in AWS revenue** and the **24% increase in advertising revenue** not only surpassed market expectations but also positioned Amazon favorably against its competitors in the AI space. The **record-high stock price** reflects investor confidence in Amazon's strategic direction and growth potential, suggesting a promising outlook for the upcoming quarters [https://finance.yahoo.com/news/amazon-q3-earnings-beat-on-top-and-bottom-lines-as-aws-growth-sends-stock-higher-155934360.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAABoJeVsANoL0U0rbFOKq_mAARMOLU-tVIflCigUQdGq9DbHydTLJyroCfNc01vJUwv6WrhwoGyskn9i0PpkYcfgqfE4r4TDgLQxfBpzSgMMWOnhMl3glN5KeM7Oj7BXMnImzcet7Zeo37vh39TOxxVKB51-TCBWKER8EMt_NHXZY].