Amazon Web Services (AWS) recorded a 16.9% revenue increase to $29.27 billion in Q1 2025, falling short of analysts' expectations for $29.42 billion. This outcome represents AWS's third consecutive revenue miss, indicating a slowdown from the previous quarter's growth. Operating income stood at $11.55 billion, exceeding expectations with a notable operating margin of 39.5%. CEO Andy Jassy expressed optimism about the company's innovations, including enhancements to the Bedrock AI service and the introduction of Trainium2 chips, aimed at optimizing AI model training. Despite competition from Microsoft, AWS holds a significant market share.
AWS experienced slower than expected growth, with revenue increases at 16.9% falling below analyst expectations, marking its third straight quarterly revenue miss.
Amazon's CEO Andy Jassy highlighted the positive innovation pace within AWS, emphasizing new services that significantly enhance customer experience and operational flexibility.
AWS remains dominant in the cloud market, accounting for 19% of Amazon's revenue despite growing competition from Microsoft and other players in the sector.
The launch of AWS's Bedrock service and new Trainium2 chips demonstrates a strategic focus on improving enterprise-level AI model training and cost efficiency.
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