Amazon Web Services Cloud Revenue Accelerates to 37% in Second Quarter
Amazon Web Services reports $14.81 billion in second-quarter revenue, surpassing analyst expectations with accelerated year-over-year growth. The cloud unit continues to generate the majority of Amazon's operating income despite a slight dip in overall company stock prices.
Amazon Web Services generates $14.81 billion in revenue during the second quarter, marking a 37% year-over-year increase that surpasses analyst expectations. This growth accelerates from the 32% increase seen in the previous quarter, solidifying AWS as the dominant force in the cloud infrastructure market with a 41% market share.
The cloud unit delivers $4.19 billion in operating income, which accounts for 54% of Amazon's total operating profit despite representing only 13% of the company's overall revenue. Amazon's finance chief attributes the accelerated growth rate to favorable comparisons against the second quarter of 2020, when the pandemic caused many companies to limit their spending.
During the quarter, AWS expands its global footprint by announcing plans to open data centers in Israel and the United Arab Emirates, alongside a new partnership with Dish Network to build cloud-based 5G infrastructure. Although AWS shows strong performance, Amazon shares drop as much as 5% in after-hours trading due to disappointing total revenue numbers for the broader company.