AWS on Track to Reach $1 Trillion in Revenue by 2036

Amazon's AWS division posted $169 billion in annual recurring revenue (ARR) last quarter, a 37% year-over-year increase. Chief Executive Officer Andy Jassy believes AWS can reach $1 trillion in revenue within the next decade.

Jassy previously estimated that AWS would reach hundreds of billions of dollars in annual revenue, but has now revised this estimate to surpassing $1 trillion. This growth is driven by demand for artificial intelligence (AI) and the continued shift of traditional IT spending to the cloud.

Applying a similar operating margin to AWS' projected $1 trillion in sales would equate to between $300 billion and $400 billion in operating earnings, depending on exactly where margins end up a decade from now.