Amazon's AWS Surges to Fastest Growth in 18 Quarters

Amazon's AWS grew 37% to $42.23 billion at a 39.4% operating margin in its fastest growth in 18 quarters.

Making up for this, Microsoft posted EPS of $4.74 on revenue of $90.01 billion, with Intelligent Cloud jumping 32% to $39.31 billion and Azure growing 43%.

While both companies leaned heavily on AI infrastructure, their business models diverge sharply.

Amazon's full-stack approach includes Trainium and Graviton silicon, Bedrock foundation models, Zoox robotaxis approved by NHTSA, and Amazon Now delivery across 250-plus cities.

Microsoft narrowed its focus to Azure, Copilot, GitHub, and Dynamics, backed by a reworked OpenAI pact that commits $250 billion of Azure services and extends IP rights through 2032.