AWS Hits 28% Growth and 37% Margins as Enterprise AI Spending Accelerates

Amazon Web Services posted $37.58 billion in Q1 revenue, up 28% year-over-year—its fastest pace in 15 quarters—while operating margins climbed to 37%. The sequential $2 billion jump from Q4, the largest on record, arrived despite Q1's traditionally softer budget environment, suggesting enterprise AI workloads are driving spend independent of normal seasonal cycles. AWS's ability to expand margins while scaling capital expenditures signals operational efficiency uncommon in previous infrastructure buildouts.