Amazon Q4 2025 Amazon.com Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Amazon.com Inc Earnings Call
At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question and answer session. Today's call is being recorded. And for opening remarks, I will be turning the call over to the vice president of investor relations Mr. Dave files. Thank you, sir. Please go ahead.
Hello, and welcome to our Q4 2025 Financial results conference call.
Joining us today to answer your questions is Andy Jassie, our CEO, and Brian osowski, our CFO as you. Listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results, as well as metrics and commentary on the quarter.
Please note unless otherwise stated all comparisons in this call will be against our results for the comparable period of 2024.
Our comments and responses to your questions, reflect Management's views. As of today, February 5th 2026 only and will include forward-looking statements actual results. May differ materially
additional information about factors that could potentially impact our financial results is included. In today's press release and our filings with the SEC, including our most recent annual report on form 10K and subsequent filings.
During this call we may discuss certain non-gaap Financial measures in our press release. Slide the company in this webcast and our filings with the SEC. Each of which is posted on our IR website. You will find additional disclosures regarding these non-gaap measures including reconciliations of these measures with comparable gaap measures.
our guidance incorporates, the order trends that we've seen today and what we believe today to be appropriate assumptions,
Our results are inherently unpredictable and may be materially affected by many factors including fluctuations in foreign exchange rates and energy prices changes in global economic and geopolitical conditions tariffs and trade policies resource and Supply volatility, including for memory chips, and customer demand. And spending, including the impact of recessionary, fears inflation, interest rates, Regional labor market, constraints, world events, the rate of growth of the internet online. Commerce cloud services, and new, and emerging Technologies, and the various factors detailed in our filings with the SEC.
Our guidance assumes among other things that we don't conclude any additional business Acquisitions or structures or legal settlements. It's not possible to accurately predict demand for our goods and services and therefore our actual results could differ materially from our guidance.
And now, I'll turn the call over to Andy.
Operator: Thank you for standing by. Good day, everyone, and welcome to the Amazon.com Q4 2025 Financial Results Teleconference. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session. Today's call is being recorded, and for opening remarks, I will be turning the call over to the Vice President of Investor Relations, Mr. Dave Fildes. Thank you, sir. Please go ahead.
Operator: Thank you for standing by. Good day, everyone, and welcome to the Amazon.com Q4 2025 Financial Results Teleconference. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session. Today's call is being recorded, and for opening remarks, I will be turning the call over to the Vice President of Investor Relations, Mr. Dave Fildes. Thank you, sir. Please go ahead.
Thanks Dave for reporting 213.4 billion in Revenue up. 12% year-over-year, excluding the impact from foreign exchange rates operating income was 25 billion and trailing 12-month free, cash flow was 11.2 billion.
We're seeing strong growth and with the incremental opportunities available to us in areas like AI chips, lower Earth, orbit satellites, quick Commerce and serving more consumers every day. Essentials needs we have a chance to build an even more meaningful business in Amazon. In the coming years with strong return on invested capital and we're investing to do so.
We're already seeing strong demand in these areas, even in these early innings.
I'll start with AWS.
Dave Fildes: Hello, and welcome to our Q4 2025 financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO, and Brian Olsavsky, our CFO. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2024. Our comments and responses to your questions reflect management's views as of today, 5 February 2026, only, and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings.
Dave Fildes: Hello, and welcome to our Q4 2025 financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO, and Brian Olsavsky, our CFO. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2024. Our comments and responses to your questions reflect management's views as of today, 5 February 2026, only, and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings.
AWS growth continued to accelerate to 24% the fastest we've seen in 13 quarters up. 2.6 billion quarter over quarter and nearly 7 billion dollars year-over-year.
Speaker #2: materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC. Including our most recent annual report on Form 10-K and subsequent filings.
As is now a 142 billion annualized, run rate business, and our chips, business inclusive of graviton and tranium is now over 10 billion dollars in annual revenue, run rate growing triple digit percentages, year-over-year as a reminder. It's very different having 24%, year-over-year growth on a 142 billion, annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors.
We continue to add more incremental revenue and capacity than others and extend our leadership position.
Speaker #2: During this call, we may
Dave Fildes: During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast, and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions.
Dave Fildes: During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast, and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions.
We're continuing to see strong growth and core non AI workloads as Enterprises return to focusing on moving infrastructure from on premises to the cloud along with AWS having the broadest functionality strongest security and operational performance and most vibrant partner ecosystem.
AWS continues to earn most of the big Enterprise and government, transitions to Cloud.
Dave Fildes: Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed in our filings with the SEC. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings, or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. And now I'll turn the call over to Andy.
Dave Fildes: Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed in our filings with the SEC. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings, or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. And now I'll turn the call over to Andy.
Since our last call, we now's new agreements with open AI Visa NBA BlackRock perplexity. Lift United Airlines door Dash sales force US, Air Force Adobe Thompson, Royers 18t. S&P Global National Bank of Canada the London Stock, Exchange Choice, Hotels extension. Indeed HSBC crowdstrike and many more.
More of the top. 500 us startups, use AWS as their primary cloud provider and the next 2 providers combined.
Graviton is up to 40% more price performance than leading x86 processors and is used expansively by over 90% of aws's top, 10,000 customers.
Andy Jassy: Thanks, Dave. We're reporting $213.4 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates. Operating income was $25 billion, and trailing twelve-month free cash flow was $11.2 billion. We're seeing strong growth, and with the incremental opportunities available to us in areas like AI, chips, low Earth orbit satellites, quick commerce, and serving more consumers' everyday essentials needs, we have a chance to build an even more meaningful business at Amazon in the coming years, with strong return on invested capital, and we're investing to do so. We're already seeing strong demand in these areas, even in these early innings. I'll start with AWS.
Andy Jassy: Thanks, Dave. We're reporting $213.4 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates. Operating income was $25 billion, and trailing twelve-month free cash flow was $11.2 billion. We're seeing strong growth, and with the incremental opportunities available to us in areas like AI, chips, low Earth orbit satellites, quick commerce, and serving more consumers' everyday essentials needs, we have a chance to build an even more meaningful business at Amazon in the coming years, with strong return on invested capital, and we're investing to do so. We're already seeing strong demand in these areas, even in these early innings. I'll start with AWS.
Graviton itself is a multi-billion dollar annualized, run rate business growing, more than 50% year-over-year.
Speaker #3: up 12% year over year, excluding the
Speaker #3: impact from foreign exchange rates. Operating income was $25 billion, and trailing 12-month free cash flow was $11.2 billion. We're seeing strong growth, and with the incremental opportunities available to us in areas like AI, chips, low-Earth orbit satellites, quick commerce, and serving more consumers' everyday essentials needs, we have a chance to build an even more meaningful business at AMAZON in the coming years, with strong return on invested capital, and we're investing to do so.
We consistently see, customers wanting to run their AI workloads where the rest of their applications and data are. We're also seeing that as customers. Run, large AI workloads on AWS. They're adding to their core AWS Footprints as well, but the biggest reason that AWS continues to gain. AI Shares are uniquely broad top to bottom. AI stack functionality
Speaker #3: these areas, even in these early We're already seeing strong demand in innings. I'll start with growth continued to accelerate to AWS. AWS 24%, the fastest we've seen in 13 quarters, up 2.6 billion quarter over quarter and nearly $7 billion year over year.
Andy Jassy: AWS growth continued to accelerate to 24%, the fastest we've seen in 13 quarters, up $2.6 billion quarter over quarter and nearly $7 billion year over year. AWS is now a $142 billion annualized run rate business, and our chips business, inclusive of Graviton and Trainium, is now over $10 billion in annual revenue run rate, growing triple-digit percentages year over year. As a reminder, it's very different having 24% year-over-year growth on a $142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors. We continue to add more incremental revenue and capacity than others and extend our leadership position.
Andy Jassy: AWS growth continued to accelerate to 24%, the fastest we've seen in 13 quarters, up $2.6 billion quarter over quarter and nearly $7 billion year over year. AWS is now a $142 billion annualized run rate business, and our chips business, inclusive of Graviton and Trainium, is now over $10 billion in annual revenue run rate, growing triple-digit percentages year over year. As a reminder, it's very different having 24% year-over-year growth on a $142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors. We continue to add more incremental revenue and capacity than others and extend our leadership position.
In AI. We're doing what we've always done in AWS solving customer challenges. Let me give you some examples. The first challenge is having a strong Foundation model to generate inferences or predictions. Customers are realizing as they get further into AI that they need Choice. As different models or better on different dimensions.
In fact, most sophisticated AI applications leverage, multiple models.
Whether customers want Frontier models like anthropics cod or open models, like me straw or llama.
Speaker #3: 142 billion annualized run rate business, and our chips business, inclusive of Graviton and Trainium, is now over $10 billion in annual revenue run rate, growing triple-digit percentages year over year.
Frontier intelligence will lower costs and latency like Amazon Nova or video and audio models like 12 Labs or Nova Sonic. Amazon Bedrock makes it easy to use. These models to run inference securely scalably and Performing late
Speaker #3: different having 24% year over year growth on a 142 billion annualized run rate than to have a higher percentage growth on a meaningfully smaller base, which is the case with our competitors.
Bedrock is now a multi-billion dollar annualized, run rate business and customers spend grew 60% quarter over quarter.
A second challenge is how to hone the model for your application.
Speaker #3: more incremental revenue and capacity than others and extend our leadership position. We're continuing to see strong growth in core non-AI workloads as enterprises return to focusing on moving infrastructure from on-premises to the cloud, along with AWS having the broadest functionality, strongest security, and operational performance, and most vibrant partner ecosystem.
Andy Jassy: We're continuing to see strong growth in core non-AI workloads as enterprises return to focusing on moving infrastructure from on-premises to the cloud, along with AWS having the broadest functionality, strongest security and operational performance, and most vibrant partner ecosystem. AWS continues to earn most of the big enterprise and government transitions to cloud. Since our last call, we announced new agreements with OpenAI, Visa, NBA, BlackRock, Perplexity, Lyft, United Airlines, DoorDash, Salesforce, U.S. Air Force, Adobe, Thomson Reuters, AT&T, S&P Global, National Bank of Canada, the London Stock Exchange, Choice Hotels, Accenture, Indeed, HSBC, CrowdStrike, and many more. More of the top 500 US startups use AWS as their primary cloud provider than the next two providers combined. We're adding significant EC2 core computing capacity each day, and the majority of that new compute is using our custom CPU silicon, Graviton.
Andy Jassy: We're continuing to see strong growth in core non-AI workloads as enterprises return to focusing on moving infrastructure from on-premises to the cloud, along with AWS having the broadest functionality, strongest security and operational performance, and most vibrant partner ecosystem. AWS continues to earn most of the big enterprise and government transitions to cloud. Since our last call, we announced new agreements with OpenAI, Visa, NBA, BlackRock, Perplexity, Lyft, United Airlines, DoorDash, Salesforce, U.S. Air Force, Adobe, Thomson Reuters, AT&T, S&P Global, National Bank of Canada, the London Stock Exchange, Choice Hotels, Accenture, Indeed, HSBC, CrowdStrike, and many more. More of the top 500 US startups use AWS as their primary cloud provider than the next two providers combined. We're adding significant EC2 core computing capacity each day, and the majority of that new compute is using our custom CPU silicon, Graviton.
Customers sometimes think if they have a good model they will have a good AI application. It's not really true. It takes a lot of work to Post train and fine-tune a model to your application.
Our sagemaker, AI service along with fine-tuning tools and Bedrock, make this much easier for customers.
Speaker #3: AWS continues to earn most of the big enterprise and government transitions to cloud. Since our last call, we announced new agreements with OpenAI, Visa, MBA, BlackRock, Perplexity, Lyft, United Airlines, DoorDash, Salesforce, US Air Force, Adobe, Thomson Reuters, AT&T, S&P Global, National Bank of Canada, the London Stock Exchange, Choice Hotels, Accenture, Indeed, HSBC, CrowdStrike, and many more.
A third challenge is how to have a custom version of the foundation model that best leverages the company's Secret Sauce, their own data.
to date companies have tried to shape models with their own data late, in the process, usually, with fine-tuning or post training,
There's debate in the industry about this, but we believe that enterprises will want models trained on their own data and early stage of pre-training if possible. So their models of the best possible foundation for what matters, most to each Enterprise on which to learn and evolve.
Speaker #3: Top 500 US startups use AWS as their primary cloud provider, more than the next two providers combined. We're adding significant EC2. AWS is now a— As a reminder, it's very— We continue to add core computing capacity each day. More of the— and the majority of that new compute is using our custom CPU, silicon, Graviton.
It's a little like teaching a child a foreign language early in their life. That becomes part of their Learning Foundation, moving forward, and it makes it easier to pick up other languages later in their life.
Speaker #3: Graviton is up to 40% more price-performant than leading x86 processors and is used expansively by over 90% of AWS's top 1,000 customers. Graviton itself is a multi-billion dollar annualized run rate business, growing more than 50% year over year.
Andy Jassy: Graviton is up to 40% more price performant than leading X86 processors and is used expansively by over 90% of AWS's top 1,000 customers. Graviton itself is a multi-billion dollar annualized run rate business, growing more than 50% year-over-year. We consistently see customers wanting to run their AI workloads where the rest of their applications and data are. We're also seeing that as customers run large AI workloads on AWS, they're adding to their core AWS footprint as well. But the biggest reason that AWS continues to gain AI share is our uniquely broad, top to bottom AI stack functionality. In AI, we're doing what we've always done in AWS, solving customer challenges. Let me give you some examples. The first challenge is having a strong foundation model to generate inferences or predictions.
Andy Jassy: Graviton is up to 40% more price performant than leading X86 processors and is used expansively by over 90% of AWS's top 1,000 customers. Graviton itself is a multi-billion dollar annualized run rate business, growing more than 50% year-over-year. We consistently see customers wanting to run their AI workloads where the rest of their applications and data are. We're also seeing that as customers run large AI workloads on AWS, they're adding to their core AWS footprint as well. But the biggest reason that AWS continues to gain AI share is our uniquely broad, top to bottom AI stack functionality. In AI, we're doing what we've always done in AWS, solving customer challenges. Let me give you some examples. The first challenge is having a strong foundation model to generate inferences or predictions.
To solve for this need, we just launched Nova Forge, which gives customers early checkpoints on our Amazon, Nova models, allows them to securely mix their own proprietary data with the models data in the pre-training stage and enables their own uniquely customized versions of Novo, what we call novellas trained with their data early in the process.
Speaker #3: We consistently see customers wanting to run their AI workloads where the rest of their applications and data are. We're also seeing that as customers run large AI workloads on AWS, they're adding to their core AWS footprint as well.
This will be very useful for companies as they build their own agents on top of a model. There is nothing else out there like this today, in a potential game changer for companies.
Speaker #3: examples. The first challenge is having a strong foundation model to generate inferences or predictions. Customers are realizing as they get further into AI that they need choice, as different models are better on different dimensions.
Andy Jassy: Customers are realizing as they get further into AI, that they need choice, as different models are better on different dimensions. In fact, most sophisticated AI applications leverage multiple models. Whether customers want frontier models like Anthropic's Claude or open models like Mistral or Llama, frontier intelligence with lower cost and latency like Amazon Nova, or video and audio models like Twelve Labs or Nova Sonic. Amazon Bedrock makes it easy to use these models to run inference securely, scalably, and performantly. Bedrock is now a multi-billion dollar annualized run rate business, and customer spend grew 60% quarter-over-quarter. The second challenge is how to hone the model for your application. Customers sometimes think if they have a good model, they will have a good AI application. It's not really true. It takes a lot of work to pre-train, and fine-tune a model for your application.
Andy Jassy: Customers are realizing as they get further into AI, that they need choice, as different models are better on different dimensions. In fact, most sophisticated AI applications leverage multiple models. Whether customers want frontier models like Anthropic's Claude or open models like Mistral or Llama, frontier intelligence with lower cost and latency like Amazon Nova, or video and audio models like Twelve Labs or Nova Sonic. Amazon Bedrock makes it easy to use these models to run inference securely, scalably, and performantly. Bedrock is now a multi-billion dollar annualized run rate business, and customer spend grew 60% quarter-over-quarter. The second challenge is how to hone the model for your application. Customers sometimes think if they have a good model, they will have a good AI application. It's not really true. It takes a lot of work to pre-train, and fine-tune a model for your application.
Speaker #3: most sophisticated AI applications leverage multiple models. Whether customers want frontier models like Anthropic's Claude, or open models like Mistral or Llama, frontier intelligence with lower costs and latency like Amazon Nova, or video and audio models like 12 Labs or Nova Sonic.
Another challenge is cost. I've said this many times, but if we want AI to be used as expansively as companies want, we have to make the cost of inference lower a significant impediment. Today is the cost of AI chips. Customers are starving for Better Price, performance and typically an understandably, the dominant early leaders aren't in a hurry to make that happen. They have other priorities. It's why we built their own custom silicon and training and it's really taken off. We've landed over 1.4 million, tranium, 2 chips. Are fastest, ramping chip launch ever training 2 is 30 to 40% more price performance than comparable gpus. It is a multi-billion dollar annualized Revenue, run rate business with a 100,000 plus companies using it as training is the majority underpinning of Bedrock usage today.
Speaker #3: these models to run inference securely, scalably, and performantly. Bedrock is now a multi-billion dollar annualized run rate business, and customers spend grew 60% quarter over quarter.
We recently launched training 3, which is up to 40% more price performance than training them too. We're seeing very strong demand for training in 3 and expect nearly all of our training and 3 supply of chips to be committed by mid 2026.
And though we're still building training for we're seeing very strong interests already.
Speaker #3: challenge is how to hone the model for your application. Customers sometimes think if they have a good model, they will have a good AI application.
Looking ahead the primary way companies will give value from AIS with agents, so on their own some from others. And there are several customer challenges that were well positioned to solve.
Speaker #3: true. It takes a lot of work to post-train and fine-tune a model for your application. Our SageMaker AI service along with fine-tuning tools in Bedrock make this much easier for customers.
It's harder to build agents than it should be. For that. We've built strands of service, enabling agents to be created from any model.
Andy Jassy: Our SageMaker AI service, along with fine-tuning tools in Bedrock, make this much easier for customers. A third challenge is how to have a custom version of a foundation model that best leverages a company's secret sauce, their own data. To date, companies have tried to shape models with their own data late in the process, usually with fine-tuning or post-training. There's debate in the industry about this, but we believe that enterprises will want models trained on their own data at an early stage, at pre-training, if possible, so their models have the best possible foundation for what matters most to each enterprise on which to learn and evolve. It's a little like teaching a child a foreign language early in their life. That becomes part of their learning foundation moving forward, and it makes it easier to pick up other languages later in their life.
Andy Jassy: Our SageMaker AI service, along with fine-tuning tools in Bedrock, make this much easier for customers. A third challenge is how to have a custom version of a foundation model that best leverages a company's secret sauce, their own data. To date, companies have tried to shape models with their own data late in the process, usually with fine-tuning or post-training. There's debate in the industry about this, but we believe that enterprises will want models trained on their own data at an early stage, at pre-training, if possible, so their models have the best possible foundation for what matters most to each enterprise on which to learn and evolve. It's a little like teaching a child a foreign language early in their life. That becomes part of their learning foundation moving forward, and it makes it easier to pick up other languages later in their life.
Speaker #3: A third challenge is how to have a custom version of a foundation model that best leverages a company's secret sauce, their own data. To date, companies have tried to shape models with their own data late in the process, usually with fine-tuning or post-training.
Speaker #3: about this, but we believe that enterprises will want models trained on their own data at an early stage, at pre-training if possible, so their models have the best possible foundation for what matters most to each enterprise on which to learn and evolve.
Speaker #3: little like teaching a child a foreign language early in their life. That becomes part of their learning foundation moving forward, and it makes it easier to pick up other languages later in their life.
Andy Jassy: To solve for this need, we just launched Nova Forge, which gives customers early checkpoints on our Amazon Nova models, allows them to securely mix their own proprietary data with the models data in the pre-training stage, and enables their own uniquely customized versions of Nova, what we call Novellas, trained with their data early in the process. This will be very useful for companies as they build their own agents on top of a model. There is nothing else out there like this today, and a potential game changer for companies. Another challenge is cost. I've said this many times, but if we want AI to be used as expansively as companies want, we have to make the cost of inference lower. A significant impediment today is the cost of AI chips.
Andy Jassy: To solve for this need, we just launched Nova Forge, which gives customers early checkpoints on our Amazon Nova models, allows them to securely mix their own proprietary data with the models data in the pre-training stage, and enables their own uniquely customized versions of Nova, what we call Novellas, trained with their data early in the process. This will be very useful for companies as they build their own agents on top of a model. There is nothing else out there like this today, and a potential game changer for companies. Another challenge is cost. I've said this many times, but if we want AI to be used as expansively as companies want, we have to make the cost of inference lower. A significant impediment today is the cost of AI chips.
Speaker #3: launched Nova Forge, which gives customers early checkpoints on our Amazon Nova models, allows them to securely mix their own proprietary data with the model's data in the pre-training stage, and enables their own uniquely customized versions of Nova, what we call A second It's not really In fact, Amazon Bedrock makes it easy to use process.
And it's unlocking. Deployments customers also want to leverage others, useful agents. And we've built several including Cairo for coding Amazon. Quick for knowledge workers to leverage their own data and analytics, AWS transform for software, migration and Amazon connect for call center operations. We continue adding new capabilities and usage continues to grow quickly. For example, the number of developers using Cairo grew more than 150% quarter over quarter.
In addition to agents the customers, direct customers are also becoming excited about Asians that require less human interaction. They can be fully autonomous, run persistently for hours or days, scale out quickly and remember context.
Speaker #3: This will be very useful for companies as they build their own agents on top of a model. There is nothing else out there like this today and a potential game changer for companies.
Speaker #3: Another challenge is cost. I've said this many times, but if we want AI to be used as expansively as companies want, we have to make the cost of inference lower.
At this past AWS reinvent, we launched Frontier agents to do that. Jerro autonomous agents for coding tasks. AWS devops agents for detecting and resolving operational issues and AWS security agents for proactively securing applications throughout the development life cycle. And they're already making a big difference for customers.
Speaker #3: A significant impediment today is the cost of AI chips. Customers are starving for better price performance, and typically, and understandably, the dominant early leaders aren't in a hurry to make that happen.
Andy Jassy: Customers are starving for better price performance, and typically, and understandably, the dominant early leaders aren't in a hurry to make that happen. They have other priorities. It's why we've built our own custom silicon in Trainium, and it's really taken off. We've landed over 1.4 million Trainium2 chips, our fastest ramping chip launch ever. Trainium2 is 30% to 40% more price performant than comparable GPUs and is a multi-billion dollar annualized revenue run rate business with 100,000+ companies using it, as Trainium is the majority underpinning of Bedrock usage today. We recently launched Trainium3, which is up to 40% more price performant than Trainium2. We're seeing very strong demand for Trainium3 and expect nearly all of our Trainium3 supply of chips to be committed by mid-2026. And though we're still building Trainium4, we're seeing very strong interest already.
Andy Jassy: Customers are starving for better price performance, and typically, and understandably, the dominant early leaders aren't in a hurry to make that happen. They have other priorities. It's why we've built our own custom silicon in Trainium, and it's really taken off. We've landed over 1.4 million Trainium2 chips, our fastest ramping chip launch ever. Trainium2 is 30% to 40% more price performant than comparable GPUs and is a multi-billion dollar annualized revenue run rate business with 100,000+ companies using it, as Trainium is the majority underpinning of Bedrock usage today. We recently launched Trainium3, which is up to 40% more price performant than Trainium2. We're seeing very strong demand for Trainium3 and expect nearly all of our Trainium3 supply of chips to be committed by mid-2026. And though we're still building Trainium4, we're seeing very strong interest already.
Speaker #3: They have other priorities. It's why we've built our own custom Silicon and Trainium. And it's really taken off. We've landed over 1.4 million Trainium 2 chips, our fastest ramping chip launch ever.
We expect to invest about a hundred billion dollars in capital expenditures across Amazon, but predominantly in AWS because we have very high demand, customers? Really want AWS for core and Ai workloads, and we're monetizing capacity as fast as we can install it.
Speaker #3: Trainium 2 is 30 to 40% more price-performant than comparable GPUs, and is a multi-billion dollar annualized revenue run rate business with 100,000 plus companies using it.
We have deep experience, understanding demand signals in the AWS business and then turning that capacity into strong return on invested Capital. We're confident, this will be the case here as well.
I'll now turn to source.
Speaker #3: As Trainium is the majority underpinning of Bedrock usage today, we recently launched Trainium 3, which is up to 40% more price-performant than Trainium 2.
Speaker #3: We're seeing very strong demand for Trainium 3, and expect nearly all of our Trainium 3 supply of chips to be committed by mid-2026. And, though we're still building Trainium 4, we're seeing very strong interest already.
We continue to expand selection including more than 400 new Beauty Brands. In the US in 2025, like, Bobbi Brown cosmetics. Charlotte, Tilbury and Laura Mercier, and new fashion brands like a wave luggage Converse, diesel Michael Kors, Nike, and The North Face.
Speaker #3: Looking ahead, the primary way companies will get value from AI is with agents—some their own, some from others—and there are several customer challenges that we're well positioned to solve.
Andy Jassy: Looking ahead, the primary way companies will get value from AI is with agents, some their own, some from others, and there are several customer challenges that we're well positioned to solve. It's harder to build agents than it should be. For that, we've built Strands, a service enabling agents to be created from any model. Once agents are built, enterprises are apprehensive about deploying to production because these agents need to securely and scalably connect to compute, data, tools, memory, identity, policy, governance, performance monitoring, and other elements. This is a new and hard problem where a solution has not existed until we launched Bedrock Agent Core. Customers are quite excited about Agent Core, and it's unlocking deployments.
Andy Jassy: Looking ahead, the primary way companies will get value from AI is with agents, some their own, some from others, and there are several customer challenges that we're well positioned to solve. It's harder to build agents than it should be. For that, we've built Strands, a service enabling agents to be created from any model. Once agents are built, enterprises are apprehensive about deploying to production because these agents need to securely and scalably connect to compute, data, tools, memory, identity, policy, governance, performance monitoring, and other elements. This is a new and hard problem where a solution has not existed until we launched Bedrock Agent Core. Customers are quite excited about Agent Core, and it's unlocking deployments.
Speaker #3: It's harder to build agents than it should be. For that, we've built Strands, a service enabling agents to be created from any model. Once agents are built enterprises are apprehensive about deploying to production because these agents need to securely and scalably connect to compute, data, tools, memory, identity, policy governance, performance monitoring, and other elements.
Our ultra low priced offering Amazon haul grew selection to over a million items under $10 and expanded to serve customers in more than 25 countries and regions. We continue to see strong customer response every day, Essentials and grocery in 2025, everyday essentials grew, nearly twice as fast as all other categories in the US representing 1 out of every 3 units, sold in our store, and we've become a go-to grocery destination for over 150 million Americans mostly through online shopping and Whole Foods.
With over 150 billion dollars in growth sales. Amazon is clearly a large ger at this point.
Speaker #3: This is a new and hard problem where a solution is not existed until we've launched Bedrock Agent Core. Customers are quite excited about Agent Core, and it's unlocking deployments.
customers in thousands of US cities and towns can now, get perishables delivered, same day, alongside millions of other items and customers who use that service shop more than twice as often as customers who don't
Speaker #3: Customers also want to leverage others' useful agents, and we've built several, including Curo for coding, Amazon Qwik for knowledge workers to leverage their own data and analytics, AWS Transform for software migration, and Amazon Connect for call center operations.
Andy Jassy: Customers also want to leverage others' useful agents, and we've built several, including Kuro for coding, Amazon Quick for knowledge workers to leverage their own data and analytics, AWS Transform for software migration, and Amazon Connect for call center operations. We continue adding new capabilities, and usage continues to grow quickly. For example, the number of developers using Kuro grew more than 150% quarter-over-quarter. In addition to agents that customers direct, customers are also becoming excited about agents that require less human interaction. They can be fully autonomous, run persistently for hours or days, scale out quickly, and remember context. At this past AWS re:Invent, we launched Frontier Agents to do that.
Andy Jassy: Customers also want to leverage others' useful agents, and we've built several, including Kuro for coding, Amazon Quick for knowledge workers to leverage their own data and analytics, AWS Transform for software migration, and Amazon Connect for call center operations. We continue adding new capabilities, and usage continues to grow quickly. For example, the number of developers using Kuro grew more than 150% quarter-over-quarter. In addition to agents that customers direct, customers are also becoming excited about agents that require less human interaction. They can be fully autonomous, run persistently for hours or days, scale out quickly, and remember context. At this past AWS re:Invent, we launched Frontier Agents to do that.
We plan to expand in many more communities in 2026. And we also plan to open more than 100 new Whole Foods Market stores over the next few years. As we work to make grocery shopping easier faster and more affordable for customers.
Speaker #3: We continue adding new capabilities and usage continues to grow quickly. For example, the number of developers using Curo grew more than 150% quarter over quarter.
We remain committed to staying sharp on price and continue to meet or beat other retailers. Prices. A recent study from profitero showed that Amazon is America's lowest price retailer for the 9th straight year 14% lower on average than other major online retailers.
Speaker #3: In addition to agents that customers direct, customers are also becoming excited about agents that require less human interaction. They can be fully autonomous, run persistently for hours or days, scale out quickly, and remember context.
We again achieved our fastest ever delivery speeds for Prime members around the world in 2025. In the US, we delivered nearly 70% more items same day than the year before.
Speaker #3: At this past AWS re:Invent, we launched Frontier Agents to do that. Curo autonomous agents for coding tasks, AWS DevOps agents for detecting and resolving operational issues, and AWS Security Agents for proactively securing applications throughout the development lifecycle.
Andy Jassy: Kuro autonomous agents for coding tasks, AWS DevOps Agents for detecting and resolving operational issues, and AWS Security Agents for proactively securing applications throughout the development life cycle, and they're already making a big difference for customers. We expect to invest about $200 billion in capital expenditures across Amazon, but predominantly in AWS, because we have very high demand, customers really want AWS for core and AI workloads, and we're monetizing capacity as fast as we can install it. We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We're confident this will be the case here as well. I'll now turn to stores.
Andy Jassy: Kuro autonomous agents for coding tasks, AWS DevOps Agents for detecting and resolving operational issues, and AWS Security Agents for proactively securing applications throughout the development life cycle, and they're already making a big difference for customers. We expect to invest about $200 billion in capital expenditures across Amazon, but predominantly in AWS, because we have very high demand, customers really want AWS for core and AI workloads, and we're monetizing capacity as fast as we can install it. We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We're confident this will be the case here as well. I'll now turn to stores.
We also continue to increasing speed for Rural customers with nearly 2 times more average. Monthly customers in rural areas, receiving same day delivery year over year.
same day as our fastest growing delivery offering and nearly 100 million customers, use it last year in the US
Speaker #3: And they're already customers. We expect to invest about a $200 billion in capital expenditures across Amazon, but predominantly in AWS, because we have very high demand, customers really want AWS for core and AI workloads, and we're monetizing capacity as fast as we can install it.
Speaker #3: We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We're confident this will be the case here as well.
And the team is continuing to innovate. We've launched Amazon. Now, in India, Mexico and the UAE Ultra fast delivery and thousands of items in about 30 minutes or less and we're testing it in several communities in the US and UK, it's early, but customers are loving it. For example, in India, customer response, exceeded our most optimistic, expectations, and we're seeing Prime members, triple their shopping frequency, once they start using it.
Speaker #3: I'll now turn to stores. We continue to expand selection, including more than 400 new beauty brands in the US in 2025, like Bobbi Brown Cosmetics, Charlotte Tilbury, and Laura Mercier, and new fashion brands like Away Luggage, Converse, Diesel, Michael Kors, Nike, and the North Face.
Andy Jassy: We continue to expand selection, including more than 400 new beauty brands in the US in 2025, like Bobbi Brown Cosmetics, Charlotte Tilbury, and Laura Mercier, and new fashion brands like Away, Converse, Diesel, Michael Kors, Nike, and The North Face. Our ultra-low-priced offering, Amazon Haul, grew selection to over 1 million items under $10 and expanded to serve customers in more than 25 countries and regions. We continue to see strong customer response to Everyday Essentials and Grocery. In 2025, Everyday Essentials grew nearly twice as fast as all other categories in the US, representing 1 out of every 3 units sold in our store, and we've become a go-to grocery destination for over 150 million Americans, mostly through online shopping and Whole Foods.
Andy Jassy: We continue to expand selection, including more than 400 new beauty brands in the US in 2025, like Bobbi Brown Cosmetics, Charlotte Tilbury, and Laura Mercier, and new fashion brands like Away, Converse, Diesel, Michael Kors, Nike, and The North Face. Our ultra-low-priced offering, Amazon Haul, grew selection to over 1 million items under $10 and expanded to serve customers in more than 25 countries and regions. We continue to see strong customer response to Everyday Essentials and Grocery. In 2025, Everyday Essentials grew nearly twice as fast as all other categories in the US, representing 1 out of every 3 units sold in our store, and we've become a go-to grocery destination for over 150 million Americans, mostly through online shopping and Whole Foods.
Expanding our same day delivery coverage. Also leads to meaningfully later cut off times for orders which is a big deal for customers. For example, on Christmas Eve, customers in about 4,000 US cities could order items up until midday and get them that same day.
Speaker #3: Our ultra-low-priced offering, Amazon Haul, grew selection to over a million items under $10 and expanded to serve customers in more than 25 countries and regions.
Another example, is our recently launched feature, add to delivery which enables Prime members in the US to add items to their upcoming, Amazon deliveries. With just 1 tap, without going through checkout again or paying additional shipping fees.
Speaker #3: We continue to see strong customer response to everyday essentials and grocery. In 2025, everyday essentials grew nearly twice as fast as all other categories in the US, representing one out of every three units sold in our store.
Just 6 months after launch add to delivery, already makes up about 10% of all Prime, volume fulfilled through the Amazon Network each week.
Speaker #3: And we've become a go-to grocery destination for over 150 million Americans. Mostly through online shopping and Whole Foods. With over 150 billion in gross sales, Amazon is clearly a large grocer at this point.
in real time with incredibly low latency, what items among Amazon's hundreds of millions of products are available to add to a customer's upcoming deliveries
surface them, find a way to include in their packages and deliver within the same customer promise.
Andy Jassy: With over $150 billion in gross sales, Amazon is clearly a large grocer at this point. Customers in thousands of US cities and towns can now get perishables delivered same-day alongside millions of other items, and customers who use that service shop more than twice as often as customers who don't. We plan to expand to many more communities in 2026, and we also plan to open more than 100 new Whole Foods Market stores over the next few years as we work to make grocery shopping easier, faster, and more affordable for customers. We remain committed to staying sharp on price and continue to meet or beat other retailers' prices. A recent study from Profiteero showed that Amazon is America's lowest-priced retailer for the ninth straight year, 14% lower on average than other major online retailers.
Andy Jassy: With over $150 billion in gross sales, Amazon is clearly a large grocer at this point. Customers in thousands of US cities and towns can now get perishables delivered same-day alongside millions of other items, and customers who use that service shop more than twice as often as customers who don't. We plan to expand to many more communities in 2026, and we also plan to open more than 100 new Whole Foods Market stores over the next few years as we work to make grocery shopping easier, faster, and more affordable for customers. We remain committed to staying sharp on price and continue to meet or beat other retailers' prices. A recent study from Profiteero showed that Amazon is America's lowest-priced retailer for the ninth straight year, 14% lower on average than other major online retailers.
The store's team is also continuing to innovate and deliver for customers with AI.
Speaker #3: Customers in thousands of US cities and towns can now get perishables delivered same day alongside millions of other items, and customers who use that service shop more than twice as often as customers who don't.
Speaker #3: We plan to expand to many more communities in 2026, and we also plan to open more than 100 new Whole Foods Market stores over the next few years as we work to make grocery shopping easier, faster, and more affordable for customers.
Speaker #3: We remain committed to staying sharp on price. And continue to meet or beat other retailers' prices. A recent study from Profitero showed that Amazon is America's lowest-priced retailer for the ninth straight year, 14% lower on average than other major online retailers.
Our agentic AI shopping assistant, Rufus is rapidly expanded, Rufus can research products, track prices and Auto buy purchasing a product in our store when it reaches your set price, it can also now shop tens of millions of items in other online stores and make purchases for customers using our agentic. Buy for me, feature last year more than 300 million customers use Rufus in addition. Customers use lens are AI powered visual search tool to find products with a phone's camera, a screenshot or a bar code, and they did a 45% more year-over-year.
Andy Jassy: We again achieved our fastest-ever delivery speeds for Prime members around the world in 2025. In the US, we delivered nearly 70% more items same-day than the year before. We also continue increasing speed for rural customers, with nearly 2 times more average monthly customers in rural areas receiving same-day delivery year-over-year. Same-day is our fastest-growing delivery offering, and nearly 100 million customers used it last year in the US. And the team is continuing to innovate. We've launched Amazon Now in India, Mexico, and the UAE. Ultra-fast delivery on thousands of items in about 30 minutes or less, and we're testing it in several communities in the US and UK. It's early, but customers are loving it. For example, in India, customer response exceeded our most optimistic expectations, and we're seeing Prime members triple their shopping frequency once they start using it.
Andy Jassy: We again achieved our fastest-ever delivery speeds for Prime members around the world in 2025. In the US, we delivered nearly 70% more items same-day than the year before. We also continue increasing speed for rural customers, with nearly 2 times more average monthly customers in rural areas receiving same-day delivery year-over-year. Same-day is our fastest-growing delivery offering, and nearly 100 million customers used it last year in the US. And the team is continuing to innovate. We've launched Amazon Now in India, Mexico, and the UAE. Ultra-fast delivery on thousands of items in about 30 minutes or less, and we're testing it in several communities in the US and UK. It's early, but customers are loving it. For example, in India, customer response exceeded our most optimistic expectations, and we're seeing Prime members triple their shopping frequency once they start using it.
Speaker #3: fastest-ever delivery speeds for We again achieved our Prime members around the world in 2025. In the US, we deliver nearly 70% more items same day than the year before.
On to Amazon ads, we're pleased with the continued strong growth across our full offerings, generating 21.3 billion dollars of Revenue in the quarter and growing 22% year-over-year.
Speaker #3: We also continue increasing speed for rural customers with nearly two times more average monthly customers in rural areas receiving same-day delivery year over year.
Is advertising in our store continues to be our largest ads offering and the combination of trillions of shopping. Browsing and streaming, signals with Advanced Ai, and machine learning. Let us deliver highly relevant useful ads for customers.
Speaker #3: Same day is our fastest-growing delivery offering in nearly 100 million customers used it last year in the US. And the team is continuing to innovate.
Speaker #3: Amazon Now in India, We've launched Mexico, and the UAE, ultra-fast delivery on thousands of items in about 30 minutes or less. And we're testing it in several communities in the US and UK.
We saw a continued growth in Prime video ads, which is now available in 16 countries, and is contributing meaning to our Revenue growth Prime Video has an average ad supported audience of 315 million viewers globally up from 200 million in early 2024.
Our ad team is also innovating with AI.
Speaker #3: It's early, but customers are loving it. For example, in India, customer response exceeded our most optimistic expectations, and we're seeing Prime members triple their shopping frequency once they start using it.
Speaker #3: Expanding our to meaningfully later cutoff times for orders. Which is a big deal for customers. For example, on Christmas Eve, customers in about 4,000 US cities could order items up until midday and get them that same day.
Andy Jassy: Expanding our same-day delivery coverage also leads to meaningfully later cut-off times for orders, which is a big deal for customers. For example, on Christmas Eve, customers in about 4,000 US cities could order items up until midday and get them that same day. Another example is our recently launched feature, Add to Delivery, which enables Prime members in the US to add items to their upcoming Amazon deliveries with just one tap without going through checkout again or paying additional shipping fees. Just six months after launch, Add to Delivery already makes up about 10% of all Prime volume fulfilled through the Amazon network each week.
Andy Jassy: Expanding our same-day delivery coverage also leads to meaningfully later cut-off times for orders, which is a big deal for customers. For example, on Christmas Eve, customers in about 4,000 US cities could order items up until midday and get them that same day. Another example is our recently launched feature, Add to Delivery, which enables Prime members in the US to add items to their upcoming Amazon deliveries with just one tap without going through checkout again or paying additional shipping fees. Just six months after launch, Add to Delivery already makes up about 10% of all Prime volume fulfilled through the Amazon network each week.
We recently announced our ads agent which lets brands use AI to create and optimize campaigns at scale, Implement effective campaign targeting and quickly create actionable insights and our creative agent. Lets advertisers research brainstorm and generate full funnel ad campaigns from concept to completion. Using conversational guidance in Amazon's retail data transforming. What was a weeks, long process into just hours?
Speaker #3: Example is our recently launched feature, Another Add to Delivery, which enables Prime members in the US to add items to their upcoming Amazon deliveries with just one tap, without going through checkout again or paying additional shipping fees.
Speaker #3: Just six months after launch, Add to Delivery already makes up about 10% of all Prime volume fulfilled through the Amazon network each week. While this seems simple on the surface, this feature is supported by a lot of invention where we need to figure out in real time and with incredibly low latency what items among Amazon's hundreds of millions of products are available to add to a customer's upcoming deliveries, surface them, find a way to include them in their packages, and deliver within the same customer promise.
We're also continuing to invent and see momentum of several other areas and I'll mention just a few starting with live sports. On Prime the fourth season of Thursday Night, Football broke more records. It was our most watched season ever averaging more than 15 million viewers a 16% year-over-year increase and the third consecutive year of double-digit growth. And the Packers versus Bears. Wild card game was the most streamed NFL game in history with 31.6 million. Viewers clearing the prior Mark, by more than 4 million.
Andy Jassy: While this seems simple on the surface, this feature is supported by a lot of invention, where we need to figure out in real time and with incredibly low latency, what items among Amazon's hundreds of millions of products are available to add to a customer's upcoming deliveries, surface them, find a way to include in their packages, and deliver within the same customer promise. The stores team is also continuing to innovate and deliver for customers with AI. Our agentic AI shopping assistant, Rufus, is rapidly expanded. Rufus can research products, track prices, and auto-buy, purchasing a product in our store when it reaches your set price. It can also now shop tens of millions of items in other online stores and make purchases for customers using our agentic Buy for Me feature. Last year, more than 300 million customers used Rufus.
Andy Jassy: While this seems simple on the surface, this feature is supported by a lot of invention, where we need to figure out in real time and with incredibly low latency, what items among Amazon's hundreds of millions of products are available to add to a customer's upcoming deliveries, surface them, find a way to include in their packages, and deliver within the same customer promise. The stores team is also continuing to innovate and deliver for customers with AI. Our agentic AI shopping assistant, Rufus, is rapidly expanded. Rufus can research products, track prices, and auto-buy, purchasing a product in our store when it reaches your set price. It can also now shop tens of millions of items in other online stores and make purchases for customers using our agentic Buy for Me feature. Last year, more than 300 million customers used Rufus.
We just made Alexa Plus available to all customers in the US free for Prime members in 1999 a month for non-prime members.
Speaker #3: The Stores team is also continuing to innovate and deliver for customers with AI. Our agentic AI shopping assistant, Rufus, is rapidly expanding. Rufus can research products, track prices, and auto-buy—purchasing a product in our store when it reaches your set price.
Alexa plus continues to get even better and more capable. And we've added new ways to interact with Alexa including a new chat experience and alexa.com a redesigned mobile app and new Integrations with third-party devices, like Samsung TVs and BMW cars.
We've also added new features like the ability to answer a ring doorbell on a customer's behalf and more ways to shop or manage a home.
Speaker #3: It can also now online stores and make purchases for shop tens of millions of items in other customers using our agentic buy-for-me feature. Last year, more than 300 million customers used Rufus.
And finally, the team is making rapid progress on Amazon, Leo, which will bring connectivity to Consumers Enterprises and governments in places where they don't have Broadband connectivity.
Speaker #3: In addition, customers used Lens, our AI-powered visual search tool, to find products with a phone's camera, a screenshot, or a barcode, and they did it 45% more year over year.
Andy Jassy: In addition, customers used Lens, our AI-powered visual search tool, to find products with a phone's camera, a screenshot, or a barcode, and they did it 45% more year-over-year. Moving on to Amazon Ads, we're pleased with the continued strong growth across our full funnel offerings, generating $21.3 billion of revenue in the quarter and growing 22% year-over-year. Sponsored products advertising in our store continues to be our largest ads offering, and the combination of trillions of shopping, browsing, and streaming signals with advanced AI and machine learning let us deliver highly relevant, useful ads for customers. We saw continued growth in Prime Video ads, which is now available in 16 countries and is contributing meaningfully to our revenue growth....
Andy Jassy: In addition, customers used Lens, our AI-powered visual search tool, to find products with a phone's camera, a screenshot, or a barcode, and they did it 45% more year-over-year. Moving on to Amazon Ads, we're pleased with the continued strong growth across our full funnel offerings, generating $21.3 billion of revenue in the quarter and growing 22% year-over-year. Sponsored products advertising in our store continues to be our largest ads offering, and the combination of trillions of shopping, browsing, and streaming signals with advanced AI and machine learning let us deliver highly relevant, useful ads for customers. We saw continued growth in Prime Video ads, which is now available in 16 countries and is contributing meaningfully to our revenue growth....
Our Enterprise grade customer, terminal, Leo, Ultra is the fastest satellite internet antenna ever built. Delivering, simultaneous, download speeds of up to 1 gigabit per second and upload speeds of up to 400 megabits per second.
Speaker #3: Moving on to Amazon Ads, we're pleased with the continued strong growth across our full-funnel offerings, generating 21.3 billion of revenue in the quarter and growing 22% year over year.
Leo will offer enterprise grade performance and advanced encryption with secure private networking that bypasses public Internet connecting directly to AWS.
We've launched 180 satellites have more than 20 launches planned in 2026 more than 30 and 2027 and expect a large commercially in 2026.
Speaker #3: our store continues to be our largest ads Sponsored products advertising in offering, and the combination of trillions of shopping, browsing, and streaming signals with advanced AI and machine learning let us deliver highly relevant and useful ads for customers.
We have dozens of commercial agreements already signed including with AT&T Direct TV Latin America, JetBlue and Australia's national Broadband Network and have many more on the way.
Speaker #3: We saw continued growth in Prime Video ads, which is now available in 16 countries and is contributing meaningfully to our revenue growth. Prime Video has an average ad-supported audience of 315 million viewers globally, up from 200 million in early 2024.
Andy Jassy: Prime Video has an average ad-supported audience of 315 million viewers globally, up from 200 million in early 2024. Our ads team is also innovating with AI. We recently announced our ads agent, which lets brands use AI to create and optimize campaigns at scale, implement effective campaign targeting, and quickly create actionable insights. And our creative agent lets advertisers research, brainstorm, and generate full funnel ad campaigns from concept to completion using conversational guidance in Amazon's retail data, transforming what was a weeks-long process into just hours. We're also continuing to invent and see momentum in several other areas, and I'll mention just a few. Starting with live sports on Prime. The fourth season of Thursday Night Football broke more records.
Andy Jassy: Prime Video has an average ad-supported audience of 315 million viewers globally, up from 200 million in early 2024. Our ads team is also innovating with AI. We recently announced our ads agent, which lets brands use AI to create and optimize campaigns at scale, implement effective campaign targeting, and quickly create actionable insights. And our creative agent lets advertisers research, brainstorm, and generate full funnel ad campaigns from concept to completion using conversational guidance in Amazon's retail data, transforming what was a weeks-long process into just hours. We're also continuing to invent and see momentum in several other areas, and I'll mention just a few. Starting with live sports on Prime. The fourth season of Thursday Night Football broke more records.
Speaker #3: Our ads team is also innovating with AI. We recently announced our ads agent, which lets brands use AI to create and optimize campaigns at scale, implement effective campaign targeting, and quickly create actionable insights.
Thanks Andy, starting with our Top Line Financial results, worldwide Revenue was 213.4 billion, the 12%, increase year-over-year, including the 150 basis points, favorable impact of foreign exchange.
Speaker #3: And our creative agent lets advertisers research, brainstorm, and generate full-funnel ad campaigns from concept to completion, using conversational guidance and Amazon's retail data, transforming what was a weeks-long process into just hours.
Thank you for we reported worldwide, operating income of 25 billion dollars. This operating income includes 3 special charges which reduced operating income by 2.4 billion dollars.
The first charge of 1.1 billion dollars is for the resolution of tax disputes associated with our stores business in Italy and the settlement of a lawsuit.
Speaker #3: We're also continuing to invent and see momentum in several other areas, and I'll mention just a few. Starting with live sports on Prime. The fourth season of Thursday Night Football broke more records.
Other operating expense line items.
Second charge is 730 million. It's for the estimated Seance costs.
Speaker #3: It was our most-watched season ever, averaging more than 15 million viewers, a 16% year-over-year increase, and the third consecutive year in double-digit growth. And the Packers versus Bears wildcard game was the most-streamed NFL game in history with 31.6 million viewers, clearing the prior mark by more than 4 million.
Andy Jassy: It was our most-watched season ever, averaging more than 15 million viewers, a 16% year-over-year increase, and a third consecutive year of double-digit growth. The Packers versus Bears Wild Card game was the most streamed NFL game in history, with 31.6 million viewers, clearing the prior mark by more than 4 million. We just made Alexa+ available to all customers in the US, free for Prime members and $19.99 a month for non-Prime members. Alexa+ continues to get even better and more capable, and we've added new ways to interact with Alexa, including a new chat experience at alexa.com, a redesigned mobile app, and new integrations with third-party devices like Samsung TVs and BMW cars. We've also added new features, like the ability to answer a Ring doorbell on a customer's behalf and more ways to shop or manage a home.
Andy Jassy: It was our most-watched season ever, averaging more than 15 million viewers, a 16% year-over-year increase, and a third consecutive year of double-digit growth. The Packers versus Bears Wild Card game was the most streamed NFL game in history, with 31.6 million viewers, clearing the prior mark by more than 4 million. We just made Alexa+ available to all customers in the US, free for Prime members and $19.99 a month for non-Prime members. Alexa+ continues to get even better and more capable, and we've added new ways to interact with Alexa, including a new chat experience at alexa.com, a redesigned mobile app, and new integrations with third-party devices like Samsung TVs and BMW cars. We've also added new features, like the ability to answer a Ring doorbell on a customer's behalf and more ways to shop or manage a home.
This charge impacts all 3 of our segments as a reported primarily in the Fulfillment sales and marketing and technology and infrastructure expense line items.
The Third charge is 610. Million is for asset impairments, primarily related to physical stores.
Speaker #3: We just made Alexa Plus available to all customers in the US, free for Prime members and 19.99 a month for non-Prime members. Alexa Plus continues to get even better and more capable, and we've added new ways to interact with Alexa, including a new chat experience at alexa.com, a redesigned mobile app, and new integrations with third-party devices like Samsung TVs and BMW cars.
Discharge primarily, impacts the North America segment and is recorded in other operating expense lines.
Moving on to our segment results.
In the North America segment, fourth quarter revenue is 127.1 billion can increase to 10% year-over-year.
Revenue was 50.7 billion dollars, an increase of 11% year-over-year, excluding the impact of foreign exchange
Speaker #3: We've also added new features, like the ability to answer a Ring doorbell on a customer's behalf, and more ways to shop or manage a home.
Worldwide, paid units, grew, 12% year-over-year, which is our highest quarterly growth rate in 2025.
Speaker #3: And finally, the team is making rapid progress on Amazon Leo, which will bring connectivity to consumers, enterprises, and governments in places where they don't have broadband connectivity.
Andy Jassy: And finally, the team is making rapid progress on Amazon Leo, which will bring connectivity to consumers, enterprises, and governments in places where they don't have broadband connectivity. Our enterprise-grade customer terminal, Leo Ultra, is the fastest satellite internet antenna ever built, delivering simultaneous download speeds of up to 1 Gb per second and upload speeds of up to 400 Mb per second. Leo will offer enterprise-grade performance and advanced encryption with secure private networking that bypasses public internet, connecting directly to AWS. We've launched 180 satellites, have more than 20 launches planned in 2026, more than 30 in 2027, and expect to launch commercially in 2026. We have dozens of commercial agreements already signed, including with AT&T, DirecTV Latin America, JetBlue, and Australia's National Broadband Network, and have many more on the way.
Andy Jassy: And finally, the team is making rapid progress on Amazon Leo, which will bring connectivity to consumers, enterprises, and governments in places where they don't have broadband connectivity. Our enterprise-grade customer terminal, Leo Ultra, is the fastest satellite internet antenna ever built, delivering simultaneous download speeds of up to 1 Gb per second and upload speeds of up to 400 Mb per second. Leo will offer enterprise-grade performance and advanced encryption with secure private networking that bypasses public internet, connecting directly to AWS. We've launched 180 satellites, have more than 20 launches planned in 2026, more than 30 in 2027, and expect to launch commercially in 2026. We have dozens of commercial agreements already signed, including with AT&T, DirecTV Latin America, JetBlue, and Australia's National Broadband Network, and have many more on the way.
The fourth quarter, marked a strong finish to the year as we deliver for customers. During the peak holiday season. Our sharp pricing that selection and record fast delivery speeds resonated with customers.
Speaker #3: Our enterprise-grade customer terminal, Leo Ultra, is the fastest satellite internet antenna ever built. Delivering simultaneous download speeds of up to 1 gigabit per second and upload speeds of up to 400 megabits per second.
The appreciate the convenience of receiving that items quickly from gifts from family and friends to everyday essentials and perishable groceries.
Speaker #3: Leo will offer enterprise-grade performance and advanced encryption with secure private networking that bypasses public internet, connecting directly to AWS. We've launched 180 satellites, have more than 20 launches planned in 2026, more than 30 in 2027, and expect to launch commercially in 2026.
Our millions of global third party, sellers continue to be an important contributor to our broad selection.
Thank you for worldwide third-party seller unit. Next was 61%.
We continue to invest in tools and services, including a copper heads of Suite of AI tools that help our selling Partners manage and grow their businesses.
Speaker #3: We have dozens of commercial agreements already signed, including with AT&T, DirecTV Latin America, JetBlue, and Australia's National Broadband Network, and have many more on the way.
Shifting profitability, North America segment. Operating income was 11.5 billion dollars with an operating margin of 9%.
Up from an 8% margin in Q4 of 2024.
Speaker #3: It's been an action-packed year of innovation and progress, and we've hit the ground running in 2026. With that, I'll turn it over to Brian for a financial update.
Andy Jassy: It's been an action-packed year of innovation and progress, and we've hit the ground running in 2026. With that, I'll turn it over to Brian for a financial update.
Andy Jassy: It's been an action-packed year of innovation and progress, and we've hit the ground running in 2026. With that, I'll turn it over to Brian for a financial update.
International segment, operating income was 1 billion dollars with an operating margin of 2.1%.
Speaker #2: Thanks, Andy. Starting with our top-line financial results. Worldwide revenue was $213.4 billion, a 12% increase year over year, including the $150 basis points favorable impact to foreign exchange.
Brian Olsavsky: Thanks, Andy. Starting with our top-line financial results. Worldwide revenue was $213.4 billion, a 12% increase year over year, excluding the 150 basis points favorable impact of foreign exchange. In Q4, we reported worldwide operating income of $25 billion. This operating income includes three special charges, which reduced operating income by $2.4 billion. The first charge of $1.1 billion is for the resolution of tax disputes associated with our stores business in Italy and the settlement of a lawsuit. This charge primarily impacts our international segment and is largely recorded in the fulfillment and other operating expense line items. Second charge of $730 million is for the estimated severance costs.
Brian Olsavsky: Thanks, Andy. Starting with our top-line financial results. Worldwide revenue was $213.4 billion, a 12% increase year over year, excluding the 150 basis points favorable impact of foreign exchange. In Q4, we reported worldwide operating income of $25 billion. This operating income includes three special charges, which reduced operating income by $2.4 billion. The first charge of $1.1 billion is for the resolution of tax disputes associated with our stores business in Italy and the settlement of a lawsuit. This charge primarily impacts our international segment and is largely recorded in the fulfillment and other operating expense line items. Second charge of $730 million is for the estimated severance costs.
Excluding the impact of special charges mentioned earlier the international segment. Operating margins also expanded year-over-year,
so please the Fulfillment Network performance throughout the peak season. We made strong progress improving the cost structure of our network, over the past few years.
Speaker #2: In Q4, we reported worldwide operating income of $25 billion, this operating income includes three special charges, which reduced operating income billion. The first charge of $1.1 billion is for the resolution of tax disputes associated with our store's business in Italy, and the settlement of a lawsuit.
In the US, a regionalized network is operating at scale and we will continue to make refinements.
This regionalization has improved local inventory, placement leading to faster, delivery at lower costs.
Speaker #2: This charge primarily impacts our international segment and is largely recorded in the fulfillment and other operating expense line items. The second charge of $730 million is for the estimated severance costs.
Last year us Prime members received over 8 billion items, the same, or next day up, more than 30% year-over-year with groceries and everyday essentials making up half of the total items.
For the third year in a row globally. In 2025, we achieved both our fastest ever delivery speeds for prime numbers while also reducing our cost to serve
Speaker #2: This charge impacts all three of our segments and is recorded primarily in the fulfillment, sales and marketing, and technology and infrastructure expense line items.
Brian Olsavsky: This charge impacts all three of our segments and is recorded primarily in the fulfillment, sales and marketing, and technology and infrastructure expense line items. The third charge of $610 million is for asset impairments, primarily related to physical stores. This charge primarily impacts the North America segment and is recorded in the other operating expense line. Moving on to our segment results. In the North America segment, fourth quarter revenue was $127.1 billion, an increase of 10% year-over-year. International segment revenue was $50.7 billion, an increase of 11% year-over-year, excluding the impact of foreign exchange. Worldwide paid units grew 12% year-over-year, which is our highest quarterly growth rate in 2025.
Brian Olsavsky: This charge impacts all three of our segments and is recorded primarily in the fulfillment, sales and marketing, and technology and infrastructure expense line items. The third charge of $610 million is for asset impairments, primarily related to physical stores. This charge primarily impacts the North America segment and is recorded in the other operating expense line. Moving on to our segment results. In the North America segment, fourth quarter revenue was $127.1 billion, an increase of 10% year-over-year. International segment revenue was $50.7 billion, an increase of 11% year-over-year, excluding the impact of foreign exchange. Worldwide paid units grew 12% year-over-year, which is our highest quarterly growth rate in 2025.
By leveraging our existing us Network we can now deliver perishable groceries to customers in more than 2,300 cities and towns all with same day delivery.
Speaker #2: The third charge of $610 million is for asset physical stores. This charge primarily impacts the North America segment and is recorded in other operating expense lines.
We saw significant adoption of this service throughout the year.
When customers engage with our perishable offering they demonstrate notably higher, monthly, spend compared to those who do not shop the category.
Speaker #2: Moving on to our segment results. In the North America segment, fourth-quarter revenue was $127.1 billion, an increase of 10% year over year. International segment revenue was $50.7 billion, an increase of 11% year over year, excluding the impact of foreign exchange.
We also see the customer shopping perishable groceries, add 3 times more items to their same day delivery orders.
Looking ahead we see further opportunities to enhance productivity and our Global fulfillment Network while delivering a faster speeds for customers.
Speaker #2: Worldwide paid units grew 12% year over year, which was our highest 2025. The fourth-quarter marked a strong finish to the year, as we delivered for customers during the peak holiday season.
Brian Olsavsky: The fourth quarter marked a strong finish to the year as we delivered for customers during the peak holiday season. Our sharp pricing, vast selection, and record fast delivery speeds resonated with customers. They appreciated the convenience of receiving their items quickly, from gifts for family and friends to everyday essentials and perishable groceries. Our millions of global third-party sellers continued to be an important contributor to our broad selection. In Q4, worldwide third-party seller unit mix was 61%. We continue to invest in tools and services, including a comprehensive suite of AI tools that help our selling partners manage and grow their businesses. Shifting to profitability, North America segment operating income was $11.5 billion, with an operating margin of 9%, up from an 8% margin in Q4 of 2024.
Brian Olsavsky: The fourth quarter marked a strong finish to the year as we delivered for customers during the peak holiday season. Our sharp pricing, vast selection, and record fast delivery speeds resonated with customers. They appreciated the convenience of receiving their items quickly, from gifts for family and friends to everyday essentials and perishable groceries. Our millions of global third-party sellers continued to be an important contributor to our broad selection. In Q4, worldwide third-party seller unit mix was 61%. We continue to invest in tools and services, including a comprehensive suite of AI tools that help our selling partners manage and grow their businesses. Shifting to profitability, North America segment operating income was $11.5 billion, with an operating margin of 9%, up from an 8% margin in Q4 of 2024.
We'll continue optimizing inventory placement to drive down distance, traveled, reduce touches per package, and approved package consolidation, as well as the launch Robotics and automation to increase efficiency and Elevate the customer experience.
Shifting to advertising.
Speaker #2: Our sharp pricing, vast selection, and record-fast delivery speeds resonated with customers. They appreciated the convenience of receiving their items quickly, from gifts for family and friends to everyday essentials and perishable groceries.
advertising Revenue would be 22% in the fourth quarter and we added over 12 billion dollars of incremental Revenue in 2025 alone as our full funnel advertising, approach of connecting brands with customers is resonating,
Speaker #2: Our millions of global third-party sellers continued to be an important contributor to our broad selection. In Q4, worldwide third-party seller unit next was $61%.
Simplifying, The Advertiser experience to enable Brands to better reach customers wherever they are.
Moving next to our AWS segment revenue is 35.6 billion in growth, accelerates 24% year-over-year.
Speaker #2: We continued to invest in tools and services, including a comprehensive suite of AI tools, that help our selling partners manage and grow their businesses.
We had a 2.6 billion dollars in quarter over quarter, revenue and AWS now has an annualized Revenue, run rate of 142 billion.
Speaker #2: Shifting to profitability, North America segment operating income was $11.5 billion, with an operating margin of 9%. Up from an 8% margin in Q4 of 2024.
Speaker #2: Our national segment operating income was $1 billion, with an operating margin of 2.1%. charges mentioned earlier, the Excluding the impact of special international segment operating margins also expanded year over network performance throughout the peak season.
Brian Olsavsky: International segment operating income was $1 billion, with an operating margin of 2.1%. Excluding the impact of special charges mentioned earlier, international segment operating margins also expanded year-over-year. We're pleased with the fulfillment network performance throughout the peak season. We made strong progress improving the cost structure of our network over the past few years. In the US, our regionalized network is operating at scale, and we've continued to make refinements. This regionalization has improved local inventory placement, leading to faster delivery and lower costs.
Brian Olsavsky: International segment operating income was $1 billion, with an operating margin of 2.1%. Excluding the impact of special charges mentioned earlier, international segment operating margins also expanded year-over-year. We're pleased with the fulfillment network performance throughout the peak season. We made strong progress improving the cost structure of our network over the past few years. In the US, our regionalized network is operating at scale, and we've continued to make refinements. This regionalization has improved local inventory placement, leading to faster delivery and lower costs.
Acceleration was driven by both core and AI Services as customers continue to modernize their infrastructure and migrate workloads to the cloud, our AI offerings continue to resonate with customers. Including our agenda capabilities. This growth was helped in part by the more than 1 gigawatt capacity. We added in Q4,
In 2025 AWS added more data center capacity than any other company in the world.
5 billion dollars.
Speaker #2: We made strong progress improving the cost structure of our network over the past few years. In the US, our regionalized network is operating at scale, and we continue to make refinements.
We're seeing strong Topline growth will remain focused on driving efficiencies across the business.
Speaker #2: This regionalization has improved local inventory placement, leading to faster delivery and lower costs. Last year, US Prime members received over $8 billion items the same or next day.
This includes investing in software and process improvements to optimize server capacity developing more efficient network using our lower cost custom networking gear and advancing custom silicon
Brian Olsavsky: Last year, US Prime members received over 8 billion items the same or next day, up more than 30% year-over-year, with groceries and everyday essentials making up half of the total items. For the third year in a row, globally, in 2025, we achieved both our fastest ever delivery speeds for Prime members, while also reducing our cost to serve. By leveraging our existing US network, we can now deliver perishable groceries to customers in more than 2,300 cities and towns, all with same-day delivery. We saw significant adoption of this service throughout the year. When customers engage with our perishable offering, they demonstrate notably higher monthly spend compared to those who do not shop the category. We also see the customers shopping perishable groceries add three times more items to their same-day delivery orders.
Brian Olsavsky: Last year, US Prime members received over 8 billion items the same or next day, up more than 30% year-over-year, with groceries and everyday essentials making up half of the total items. For the third year in a row, globally, in 2025, we achieved both our fastest ever delivery speeds for Prime members, while also reducing our cost to serve. By leveraging our existing US network, we can now deliver perishable groceries to customers in more than 2,300 cities and towns, all with same-day delivery. We saw significant adoption of this service throughout the year. When customers engage with our perishable offering, they demonstrate notably higher monthly spend compared to those who do not shop the category. We also see the customers shopping perishable groceries add three times more items to their same-day delivery orders.
At the same time, we continue to rapidly develop products and services on behalf of customers.
Speaker #2: Up more than 30% year over year. With groceries and everyday essentials making up half of the total items. For the third year in a row, globally, in 2025, we achieved both our fastest ever delivery speeds for Prime members while also reducing our cost to serve.
As we've long said, we expect AWS property margins to plug to a different time driven in part by the level of Investments we're making at any point in time.
Speaker #2: By leveraging our existing U.S. network, we can now deliver perishable groceries to customers in more than 2,300 cities and towns, all with same-day delivery.
Turning to cash flows. Our full year, operating cash flow increased to under the 39.5 billion dollars in, 2025 up, 20% year-over-year due to primarily to improved operating income and changes in working capital,
Speaker #2: We saw significant adoption of this service throughout the year. When customers engage with our perishable offering, they demonstrate notably higher monthly spend compared to those who do not shop the category.
Now, turning to our q1 financial guidance, q1 net sales are expected to be between 173.5 billion and 178.5 billion dollars.
This guidance anticipates a favorable impact of approximately 180 basis points from foreign exchange rates.
Speaker #2: We also see that customers shopping perishable groceries add three times more items to their same-day delivery orders. Looking ahead, we see further opportunity to enhance productivity in our global fulfillment network while delivering a faster speed for customers.
As a reminder, Global currencies can fluctuate during the quarter.
Brian Olsavsky: Looking ahead, we see further opportunity to enhance productivity in our global fulfillment network, while delivering at faster speeds for customers. We will continue optimizing inventory placement to drive down distance traveled, reduce touches per package, and improve package consolidation, as well as launch robotics and automation to increase efficiency and elevate the customer experience. Shifting to advertising. Advertising revenue grew 22% in the fourth quarter, and we added over $12 billion of incremental revenue in 2025 alone, as our full-funnel advertising approach of connecting brands with customers is resonating, simplifying the advertiser experience to enable brands to better reach customers wherever they are. Moving next to our AWS segment. Revenue was $35.6 billion, and growth accelerated to 24% year-over-year.
Brian Olsavsky: Looking ahead, we see further opportunity to enhance productivity in our global fulfillment network, while delivering at faster speeds for customers. We will continue optimizing inventory placement to drive down distance traveled, reduce touches per package, and improve package consolidation, as well as launch robotics and automation to increase efficiency and elevate the customer experience. Shifting to advertising. Advertising revenue grew 22% in the fourth quarter, and we added over $12 billion of incremental revenue in 2025 alone, as our full-funnel advertising approach of connecting brands with customers is resonating, simplifying the advertiser experience to enable brands to better reach customers wherever they are. Moving next to our AWS segment. Revenue was $35.6 billion, and growth accelerated to 24% year-over-year.
To 1, operating income is expected to be between 16.5 billion and 211.5 billion dollars.
Speaker #2: We will continue optimizing inventory placement to drive down distance traveled, reduce touches per package, and improve package consolidation. As well as launch robotics and automation to increase efficiency and elevate the customer experience.
Within the North America segment, we do expect a year-over-year cost to increase approximately 1 billion dollars related to Amazon Leo.
We have more than 20 launches planned in 2026 and more than 30 and 2027 which means we're spending more on launching satellites each year.
Speaker #2: Shifting to advertising. Advertising revenue grew 22% in the fourth quarter, and we added over $12 billion of incremental revenue in 2025 alone. As our full funnel, advertising approach of connecting brands with customers is resonating.
Select Enterprise customers are testing Amazon, Leo Services now and we expect a wider commercial roll out later this year.
Speaker #2: Simplifying the advertiser experience to enable brands to better reach customers wherever they are. Moving next to our AWS segment. Revenue was $35.6 billion, and growth accelerated to 24% year over year.
As a reminder, today, we do expense, most of these Leo costs as incurred. We expect that later in the year, many of these costs such as satellite manufacturing and launch services will be capitalized.
Speaker #2: We added $2.6 billion in quarter-over-quarter revenue, and AWS now has an annualized revenue run rate of $142 billion. This acceleration was driven by both core and AI services, as customers continue to modernize their infrastructure and migrate workloads to the cloud.
Brian Olsavsky: We added $2.6 billion in quarter-over-quarter revenue, and AWS now has an annualized revenue run rate of $142 billion. This acceleration was driven by both core and AI services, as customers continue to modernize their infrastructure and migrate workloads to the cloud. Our AI offerings continue to resonate with customers, including our agentic capabilities. This growth was helped in part by the more than 1 gigawatt capacity we added in Q4. In 2025, AWS added more data center capacity than any other company in the world. AWS operating income was $12.5 billion. We're seeing strong top-line growth while remaining focused on driving efficiencies across the business. This includes investing in software and process improvements to optimize server capacity, developing a more efficient network using our lower-cost custom networking gear, and advancing custom silicon.
Brian Olsavsky: We added $2.6 billion in quarter-over-quarter revenue, and AWS now has an annualized revenue run rate of $142 billion. This acceleration was driven by both core and AI services, as customers continue to modernize their infrastructure and migrate workloads to the cloud. Our AI offerings continue to resonate with customers, including our agentic capabilities. This growth was helped in part by the more than 1 gigawatt capacity we added in Q4. In 2025, AWS added more data center capacity than any other company in the world. AWS operating income was $12.5 billion. We're seeing strong top-line growth while remaining focused on driving efficiencies across the business. This includes investing in software and process improvements to optimize server capacity, developing a more efficient network using our lower-cost custom networking gear, and advancing custom silicon.
Within the international segment. We're continuing to invest more in our stores business to enhance the customer experience and to encourage retail demand to move online more quickly. This includes bringing faster, delivery options, including Amazon, now or service, which delivers to customers in 30 minutes or less.
We also are working hard to stay sharp on pricing and seller fees. And there are countries where we've had to be more aggressive to meet or beat competitors prices.
Speaker #2: Our AI offerings continue to resonate with customers, including our organic capabilities. This growth was helped in part by the more than $1 gigawatt of capacity we added in Q4.
We'd like these Investments because they will delay, customers grow our business and we believe they will generate long-term positive return on investment capital.
Speaker #2: In 2025, AWS added more data center capacity than any other company in the world. AWS operating income was $12.5 billion. We're seeing strong top-line growth while remaining focused on driving efficiencies across the business.
As we enter 2026, I'm energized by our team, strong execution.
I want to thank everyone across the company for their hard work on behalf of our customers.
Marine focused on driving an even better customer experience, which is the only reliable way to create lasting value. For our shareholders,
With that, let's move on to your questions.
Speaker #2: This includes investing in software and process improvements to optimize server capacity. Developing a more efficient network using our lower-cost custom networking gear and advancing custom silicon.
At this time, we will now open the call up for questions.
Speaker #2: At the same time, we continue to rapidly develop products and services on behalf of customers. As we've long said, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we're making at any point in time.
Brian Olsavsky: At the same time, we've continued to rapidly develop products and services on behalf of customers. As we've long said, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we're making at any point in time. Turning to cash flows, our full-year operating cash flow increased to $139.5 billion in 2025, up 20% year-over-year, due primarily to improved operating income and changes in working capital. Now turning to our Q1 financial guidance. Q1 net sales are expected to be between $173.5 billion and $178.5 billion. This guidance anticipates a favorable impact of approximately 180 basis points from foreign exchange rates. As a reminder, global currencies can fluctuate during the quarter.
Brian Olsavsky: At the same time, we've continued to rapidly develop products and services on behalf of customers. As we've long said, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we're making at any point in time. Turning to cash flows, our full-year operating cash flow increased to $139.5 billion in 2025, up 20% year-over-year, due primarily to improved operating income and changes in working capital. Now turning to our Q1 financial guidance. Q1 net sales are expected to be between $173.5 billion and $178.5 billion. This guidance anticipates a favorable impact of approximately 180 basis points from foreign exchange rates. As a reminder, global currencies can fluctuate during the quarter.
Speaker #2: Turning to cash flows, our full-year operating cash flow increased to $139.5 billion in 2025. Up 20% year over year, due primarily to improved operating income and changes in working capital.
We asked each caller to please limit yourself to 1 question. If you would like to ask a question, please press star 1 on your telephone keypad. We ask that when you pose your question, you pick up your handset to provide Optimum sound quality, once again to initiate a question. Please press star, then 1 on your touchtone, telephone telephone at this time.
Please hold while we pull for questions.
Speaker #2: Now turning to our Q1 financial guidance. Q1 net sales are expected to be between $173.5 billion and $178.5 billion. This guidance anticipates a favorable impact of approximately $180 basis points from foreign exchange rates.
Thank you. Our first question comes from the line of Mark mahaney with evercore isi.
Please proceed with your question.
Speaker #2: As a reminder, global currencies can fluctuate during the quarter. Q1 operating income is expected to be between $16.5 billion and $21.5 billion. A few things to mention on the operating income guidance.
Brian Olsavsky: Q1 operating income is expected to be between $16.5 billion and $21.5 billion. A few things to mention on the operating income guidance. Within the North America segment, we do expect a year-over-year cost increase of approximately $1 billion related to Amazon Leo. We have more than 20 launches planned in 2026 and more than 30 in 2027, which means we're spending more on launching satellites each year. Select enterprise customers are testing Amazon Leo services now, and we expect a wider commercial rollout later this year. As a reminder, today, we do expense most of these Leo costs as incurred. We expect that later in the year, many of these costs, such as satellite manufacturing and launch services, will be capitalized.
Brian Olsavsky: Q1 operating income is expected to be between $16.5 billion and $21.5 billion. A few things to mention on the operating income guidance. Within the North America segment, we do expect a year-over-year cost increase of approximately $1 billion related to Amazon Leo. We have more than 20 launches planned in 2026 and more than 30 in 2027, which means we're spending more on launching satellites each year. Select enterprise customers are testing Amazon Leo services now, and we expect a wider commercial rollout later this year. As a reminder, today, we do expense most of these Leo costs as incurred. We expect that later in the year, many of these costs, such as satellite manufacturing and launch services, will be capitalized.
Speaker #2: Within the North America segment, we do expect a year-over-year cost increase of approximately $1 billion, related to Amazon LEO. We have more than 20 launches planned in 2026 and more than 30 in 2027, which means we're spending more on launching satellites each year.
Speaker #2: Select enterprise customers are testing Amazon Leo services now, and we expect a wider commercial rollout later this year. As a reminder, today we do expense most of these Leo costs as incurred.
Okay, thanks. Uh, I think Brian. Let me throw this to you or maybe to Andy on the strong long-term return on investing capital. I think that's the debate in the market, uh, today. So could you give us a little bit more insight into you know, how you think investors will be able to see that either? Uh, talk about the duration of the capex cycle that you're going through now or um what we should see in terms of profitability levels. Uh and maybe also talk about like other the minimums or minimum free, cash flow generation levels that you don't want to go below as you go through this capex cycle. Just help us, you know, get to that, uh, get get to your level of confidence and having a strong long-term return on that invested capital. Thank you.
Speaker #2: We expect that later in the year, many of these costs, such as satellite manufacturing and launch services, will be capitalized. Within the international segment, we're continuing to invest more in our stores business to enhance the customer experience and to encourage retail demand to move online more quickly.
Brian Olsavsky: Within the international segment, we're continuing to invest more in our stores business to enhance the customer experience and to encourage retail demand to move online more quickly. This includes bringing faster delivery options, including Amazon Now, our service, which delivers to customers in 30 minutes or less. We're also working hard to stay sharp on pricing and seller fees, and there are countries where we've had to be more aggressive to meet or beat competitors' prices. We like these investments because they will delight customers, grow our business, and we believe they will generate long-term positive return on invested capital. As we enter 2026, I'm energized by our team's strong execution. I want to thank everyone across the company for their hard work on behalf of our customers.
Brian Olsavsky: Within the international segment, we're continuing to invest more in our stores business to enhance the customer experience and to encourage retail demand to move online more quickly. This includes bringing faster delivery options, including Amazon Now, our service, which delivers to customers in 30 minutes or less. We're also working hard to stay sharp on pricing and seller fees, and there are countries where we've had to be more aggressive to meet or beat competitors' prices. We like these investments because they will delight customers, grow our business, and we believe they will generate long-term positive return on invested capital. As we enter 2026, I'm energized by our team's strong execution. I want to thank everyone across the company for their hard work on behalf of our customers.
Yeah, sure, mark, thank you. I'll start from a, a financial side. Um, so on the, uh, Investments, we're making is Andy said earlier, you know, we are, uh, putting into Service, uh, with customers, uh, all all capacity that we're getting and it's, uh, immediately useful. And we're also seeing a long Arc of, um,
Speaker #2: This includes bringing faster delivery options, including Amazon Now or services which deliver to customers in 30 minutes or less. We're also working hard to stay sharp on pricing and seller fees.
Speaker #2: In our countries where we've had to be more aggressive to meet or beat competitors' prices. We'd like these investments because they will delay customers, grow our business, and we believe they will generate long-term positive return on invested capital.
So, um, you can see it. That's working its way into our p&l, both through capex and also through our operating margin in, uh, AWS AWS is, um,
Speaker #2: As we enter execution. I want to thank 2026, I'm energized by our team's strong everyone across the company for their hard work on behalf of our customers.
Speaker #2: We remain focused on driving an even better customer experience, which is the only reliable way to create lasting value for our shareholders. With that, let's move on to your
Brian Olsavsky: We remain focused on driving an even better customer experience, which is the only reliable way to create lasting value for our shareholders. With that, let's move on to your questions.
Brian Olsavsky: We remain focused on driving an even better customer experience, which is the only reliable way to create lasting value for our shareholders. With that, let's move on to your questions.
Speaker #2: questions. At this time,
Uh, 35% operating margin through, uh, Q4 up, 40 basis points year over year. As we talked about before that is going to fluctuate over time. It's certainly um, has a headwind from the investments in Ai and the depreciation on that capex. But we also work very hard to offset that with efficiencies and cost reductions. So, uh, we will see how that develops over time. So, um, but uh yeah, we see long, uh, strong return on invested capital u. See strong demand for these services and we continue to like the investments in this area.
Operator: At this time, we will now open the call up for questions. We ask each caller to please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad. We ask that when you pose your question, you pick up your handset to provide optimum sound quality. Once again, to initiate a question, please press star, then one on your touchtone telephone at this time. Please hold while we poll for questions. Thank you. Our first question comes from the line of Mark Mahaney with Evercore ISI. Please proceed with your question.
Operator: At this time, we will now open the call up for questions. We ask each caller to please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad. We ask that when you pose your question, you pick up your handset to provide optimum sound quality. Once again, to initiate a question, please press star, then one on your touchtone telephone at this time. Please hold while we poll for questions. Thank you. Our first question comes from the line of Mark Mahaney with Evercore ISI. Please proceed with your question.
Speaker #1: we will now open the call up for questions. We ask each caller to please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad.
that um, you know what, if you look at the Capitol
Speaker #1: We ask that when you pose your question, you pick up your handset to provide optimum sound quality. Once again, to initiate a question, please press star, then one, on your touch-tone telephone at this time.
Speaker #1: Please hold while we pull for questions. Thank you. Our first question comes from the line of Mark Mahaney with Evercore ISI. Please proceed with your question.
Uh, we're spending and intend to spend this year. It's predominantly in AWS and some of it is for our core workloads, which are non AI workloads because they're growing at a fast rate than we anticipated. But in most of it is an AI and we we just have a lot of growth and a lot of demand and when you're growing 24% year-over-year with a an annualized Revenue, run rate of 142 billion dollars, you're growing a lot.
Speaker #2: Okay. Thanks. I think, Brian, let me throw this to you or maybe to Andy. On the strong long-term return on invested capital, I think that's the debate in the market today.
Brian Olsavsky: Okay, thanks. I think, Brian, let me throw this to you or maybe to Andy. On the strong long-term return on invested capital, I think that's the debate in the market, today. So could you give us a little bit more insight into-
Brian Olsavsky: Okay, thanks. I think, Brian, let me throw this to you or maybe to Andy. On the strong long-term return on invested capital, I think that's the debate in the market, today. So could you give us a little bit more insight into-
Speaker #2: So could you give us a little bit more insight into how you think investors will be able to see that, either talk about the duration of the CapEx cycle that you're going through now or what we should see in terms of profitability levels?
And what we're continuing to see is as fast as we install this capacity to say. I capacity. We are monetizing it. So it's just a very unusual opportunity, you know, as as, uh, I've shared a lot of times, I, I passionately believe that every customer experience that we know of today is going to be reinvented, uh, with AI. They're going to be a whole bunch of customer experiences that none of us ever imagined that are, that are going to become the Norms of how we all operate every day and, and, and what we use.
[Analyst] (Evercore ISI): ... you know, how do you think investors will be able to see that? Either talk about the duration of the CapEx cycle that you're going through now, or what we should see in terms of profitability levels. And maybe also talk about, like, are there de minimis or minimum free cash flow generation levels that you don't want to go below as you go through this CapEx cycle? Just help us, you know, get to that, get to your level of confidence in having a strong long-term return on that invested capital. Thank you.
Mark Mahaney: ... you know, how do you think investors will be able to see that? Either talk about the duration of the CapEx cycle that you're going through now, or what we should see in terms of profitability levels. And maybe also talk about, like, are there de minimis or minimum free cash flow generation levels that you don't want to go below as you go through this CapEx cycle? Just help us, you know, get to that, get to your level of confidence in having a strong long-term return on that invested capital. Thank you.
Speaker #2: And maybe also talk about other de minimis or minimum free cash flow generation levels that you don't want to go below as you go through this CapEx cycle.
Speaker #2: Just help us get to that—get to your level of confidence in having a strong long-term return on that invested capital. Thank you.
Speaker #3: Yeah, sure, Mark. Thank you. I'll start from a financial side. So, on the investments we're making, as Andy said earlier, we are putting into service with customers all capacity that we're getting, and it's immediately useful.
Andy Jassy: Yeah, sure, Mark, and thank you. I'll start from a financial side. So on the investments we're making, as Andy said earlier, you know, we are putting into service with customers all capacity that we're getting, and it's immediately useful. And we're also seeing a long arc of additional revenue that we see from other customers and backlog and commitments that people are anxious to make with us, especially for AI services. So you can see that's working its way into our P&L, both through CapEx and also through our operating margin in AWS. AWS is 35% operating margin through Q4, up 40 basis points year-over-year. As we talked about before, that is gonna fluctuate over time.
Andy Jassy: Yeah, sure, Mark, and thank you. I'll start from a financial side. So on the investments we're making, as Andy said earlier, you know, we are putting into service with customers all capacity that we're getting, and it's immediately useful. And we're also seeing a long arc of additional revenue that we see from other customers and backlog and commitments that people are anxious to make with us, especially for AI services. So you can see that's working its way into our P&L, both through CapEx and also through our operating margin in AWS. AWS is 35% operating margin through Q4, up 40 basis points year-over-year. As we talked about before, that is gonna fluctuate over time.
Speaker #3: And we're also seeing a long arc of additional revenue that we see from other customers and backlog and commitments that people are anxious to make with us, especially for AI. That's working its way into our P&L, both services.
I think the other thing is that, if you really want to use AI in an expansive way, you need your data in the cloud and you need your applications in the cloud. And those are all big uh, Tailwind pushing people towards the cloud. So we're we're going to invest aggressively here and we're going to invest to be the leader in this space. As we have been for the last number of years. We have I think a fair bit of experience over the years in AWS uh of forecasting, demand signals and doing it in such a way that we don't have a lot of wasted capacity and that we also have enough capacity to serve the demand that's that's there. And I, I think we've also proven with AWS, over the years and how we build data centers and how we run them, and how we invent in there. If you think about our chips and our Hardware, our networking gear, and how we've invented Empower that, this isn't some sort of quick exotic, uh, um, Topline grab you know, we we have confidence that we that the
Speaker #3: So you can both through CapEx and also through our operating margin in AWS. AWS is 35% operating margin through Q4, up 40 basis points year over year.
Speaker #3: As we talked about before, that is going to fluctuate over time. It's certainly has a headwind from the investments in AI and the depreciation on that CapEx.
Andy Jassy: It certainly has a headwind from the investments in AI and the depreciation on that CapEx, but we also work very hard to offset that with efficiencies and cost reductions. So, we will see how that develops over time. So, but yeah, we see long, strong return on invested capital, we see strong demand for these services, and we continue to like the investments in this area. I would add to that, you know, if you look at the capital we're spending and intend to spend this year, it's predominantly in AWS, and some of it is for our core workloads, which are our non-AI workloads, 'cause they're growing at a faster rate than we anticipated. But most of it is in AI, and we just have a lot of growth and a lot of demand.
Andy Jassy: It certainly has a headwind from the investments in AI and the depreciation on that CapEx, but we also work very hard to offset that with efficiencies and cost reductions. So, we will see how that develops over time. So, but yeah, we see long, strong return on invested capital, we see strong demand for these services, and we continue to like the investments in this area. I would add to that, you know, if you look at the capital we're spending and intend to spend this year, it's predominantly in AWS, and some of it is for our core workloads, which are our non-AI workloads, 'cause they're growing at a faster rate than we anticipated. But most of it is in AI, and we just have a lot of growth and a lot of demand.
Speaker #3: But we also work very hard to offset that with efficiencies and cost reductions. So we will see how that develops over time. But yeah, we see long, strong return on invested capital.
Speaker #3: We see strong demand for these services, and we continue to like the
Speaker #3: investments in this area. I would
Speaker #4: add to that, if you look at the capital we're spending and intend to spend this year, it's predominantly in AWS. And some of it is for our core workloads, which are our non-AI workloads because they're growing at a faster rate than we anticipated.
These investments will yield strong, ter strong Returns on invested Capital. We've done that with our core AWS business and I think that will very much be true here as well. And I think some of the things that you will see over time uh in in the AI spaces, you're going to keep seeing all the inference Services which is going to be the majority of the long-term AI workloads is going to be inference. Um, you're going to see the inference keep getting optimized. You're going to see higher utilization on those Services, you'll see prices normalized over a period of time. And then I think the companies that have um, not just the Excellence and infrastructure, but also the components that give them, they give customers Better Price performance and give those companies themselves better economics.
Speaker #4: But most of it is in AI. And we just have a lot of growth and a lot of demand. And when you're growing 24% year over year, with an annualized revenue run rate of $142 billion, you're growing a lot.
Andy Jassy: And when you're growing 24% year-over-year with an annualized revenue run rate of $142 billion, you're growing a lot. And what we're continuing to see is, as fast as we install this capacity, this AI capacity, we are monetizing it. So it's just a very unusual opportunity. You know, as I've shared a lot of times, I passionately believe that every customer experience that we know of today is going to be reinvented with AI. They're gonna be a whole bunch of customer experiences that none of us ever imagined, that are gonna become the norms of how we all operate every day and what we use.
Andy Jassy: And when you're growing 24% year-over-year with an annualized revenue run rate of $142 billion, you're growing a lot. And what we're continuing to see is, as fast as we install this capacity, this AI capacity, we are monetizing it. So it's just a very unusual opportunity. You know, as I've shared a lot of times, I passionately believe that every customer experience that we know of today is going to be reinvented with AI. They're gonna be a whole bunch of customer experiences that none of us ever imagined, that are gonna become the norms of how we all operate every day and what we use.
Are going to have advantaged. Um, uh, um, financials and I think if you look, we're already off to a really good start having tranium underneath the majority of our Bedrock service. And that's not just giving customers better prices, but it also gives us better economics. And so we see that following the same to sorts of patterns. We saw in the early days of our core AWS investment. I'm very confident. We're going to have strong return on invested Capital here.
Speaker #4: And what we're continuing to see is this: as we install this capacity, this AI capacity, we are monetizing it. And so it's just a very unusual opportunity.
Speaker #4: As I've shared a lot of times, I passionately believe that every customer experience that we know of today is going to be reinvented. With AI, there are going to be a whole bunch of customer experiences that none of us ever imagined that are going to become the norms of how we all operate every day and what we use.
And the next question comes from the line of Doug anmas with JP Morgan, please proceed with your question.
Speaker #4: And I think the other thing is that if you really want to use AI in an expansive way, you need your data in the cloud, and you need your applications in the cloud.
Andy Jassy: I think the other thing is that if you really wanna use AI in an expansive way, you need your data in the cloud, and you need your applications in the cloud. Those are all big tailwinds, pushing people towards the cloud. So we're gonna invest aggressively here, and we're gonna invest to be the leader in this space, as we have been for the last number of years. We have, I think, a fair bit of experience over the years in AWS of forecasting demand signals and doing it in such a way that we don't have a lot of wasted capacity, and that we also have enough capacity to serve the demand that's there.
Andy Jassy: I think the other thing is that if you really wanna use AI in an expansive way, you need your data in the cloud, and you need your applications in the cloud. Those are all big tailwinds, pushing people towards the cloud. So we're gonna invest aggressively here, and we're gonna invest to be the leader in this space, as we have been for the last number of years. We have, I think, a fair bit of experience over the years in AWS of forecasting demand signals and doing it in such a way that we don't have a lot of wasted capacity, and that we also have enough capacity to serve the demand that's there.
Speaker #4: Those are all big tailwinds pushing people towards the cloud. So we're going to invest aggressively here, and we're going to invest to be the leader in this space as we have been for the last number of years.
Um, thanks so much for taking questions. Um, can you just talk about how project renew is is running within prpic after its first full quarter? And I think in the release, it talks about 500,000 chips. But uh, a few months ago, you talked about getting to a million as well. So if you could clarify that, um, and then maybe just to follow up on Mark's question. Um, are there any Financial guard rails or governors in place that we should think about around the spend just in terms of operating income growth or positive free cash flow? Thanks.
Speaker #4: We have I think a fair bit of experience over the years in AWS of forecasting demand signals and doing it in such a way that we don't have a lot of wasted capacity.
Speaker #4: And that we also have enough capacity to serve the demand that's there. And I think we've also proven with AWS over the years in how we build data centers and how we run them, and how we invent in there.
Andy Jassy: And I think we've also proven with AWS over the years in how we build data centers and how we run them and how we invent in there, if you think about our chips and our hardware, our networking gear, and how we've invented in power, that this isn't some sort of quixotic top-line grab. You know, we have confidence that these investments will yield strong returns on invested capital. We've done that with our core AWS business, and I think that will very much be true here as well. I think some of the things that you will see over time in the AI space is, you're gonna keep seeing all the inference services, which is gonna be the majority of the long-term AI workloads, is gonna be inference.
Andy Jassy: And I think we've also proven with AWS over the years in how we build data centers and how we run them and how we invent in there, if you think about our chips and our hardware, our networking gear, and how we've invented in power, that this isn't some sort of quixotic top-line grab. You know, we have confidence that these investments will yield strong returns on invested capital. We've done that with our core AWS business, and I think that will very much be true here as well. I think some of the things that you will see over time in the AI space is, you're gonna keep seeing all the inference services, which is gonna be the majority of the long-term AI workloads, is gonna be inference.
Speaker #4: If you think about our chips and our hardware and our networking gear and how we've invented and power, that this isn't some sort of quick, sodic, top-line grab.
Speaker #4: We have confidence that these investments will yield strong returns on invested capital. We've done that with our core AWS business, and I think that will very much be true here as well.
Speaker #4: And I think some of the things that you will see over time in the AI space is you're going to keep seeing all the inference services, which is going to be the majority of the long-term AI workloads.
Speaker #4: It's going to be inference. You're going to see the inference keep getting optimized. You're going to see higher utilization on those services. You'll see prices normalize over a period of time.
We have their uh, you know, I think if you if you look at what's happened in the early Innings of of AI over the first few years, you see a lot of usage. Um but customers are really thirsty for Better Price performance and tranium has 30 to 40% Better Price performance than comparable gpus. So it's very compelling to customers. Uh you you know, you you mentioned project reneer anthropic is building their next, um, their training their next uh, Cloud Model on top of uh tranium 2. Um, and that's with project, Greener is, we talked about 500,000 chips there. You will see that continuing to increase. They're also using a, a fair bit of training to, for other, um, workloads and their own apis, um, Beyond just project right near but training is a multi-billion dollar annualized run rate business at this point. Um, and uh, and it's fully subscribed and what you're also seeing is
Andy Jassy: You're gonna see the inference keep getting optimized, you're gonna see higher utilization on those services. You'll see prices normalize over a period of time. And then I think the companies that have not just the excellence in infrastructure, but also the components that give them... It'll give customers better price performance and give those companies themselves better economics, are gonna have advantaged financials. And I think if you look, we're already off to a really good start, having Trainium underneath the majority of our Bedrock service, and that's not just giving customers better prices, but it also gives us better economics. And so we see that following the same sorts of patterns we saw in the early days of our core AWS investment. I'm very confident we're gonna have strong return on invested capital here.
Andy Jassy: You're gonna see the inference keep getting optimized, you're gonna see higher utilization on those services. You'll see prices normalize over a period of time. And then I think the companies that have not just the excellence in infrastructure, but also the components that give them... It'll give customers better price performance and give those companies themselves better economics, are gonna have advantaged financials. And I think if you look, we're already off to a really good start, having Trainium underneath the majority of our Bedrock service, and that's not just giving customers better prices, but it also gives us better economics. And so we see that following the same sorts of patterns we saw in the early days of our core AWS investment. I'm very confident we're gonna have strong return on invested capital here.
Speaker #4: And then I think the companies that have not just the excellence in infrastructure, but also the components that give their customers better price performance and give those companies themselves better economics, are going to have advantaged financials.
Speaker #4: And we're already off to a really good start having Trainium underneath the majority of our Bedrock service. And that's not just giving customers better prices, but it also gives us better economics.
Tranium 3, which is the next version of of training which we just started shipping, that's 40% more price performance than training them 2. And we have um, there is very substantial amount of interest there, we expect that nearly all of that Supply will be committed by somewhere around the middle of this year and we're just in the process of building training for. There's very substantial interest in in training for which is coming in 2027. And we're already having conversations about training at 5. So
Speaker #4: And so we see that following the same sorts of patterns we saw in the early days of our core AWS investment. I'm very confident we're going to have strong return on invested capital
Speaker #4: here. And the next
[Analyst] (Evercore ISI): The next question comes from the line of Doug Anmuth with JPMorgan. Please proceed with your question.
Mark Mahaney: The next question comes from the line of Doug Anmuth with JPMorgan. Please proceed with your question.
Speaker #1: question comes from the line of Doug Ameth with JP Morgan. Please proceed with your question.
Speaker #5: Thanks so much for taking the questions. Can you just talk about how Project Rainier is running with Anthropic after its first full quarter? And I think in the release, it talks about 500,000 chips, but a few months ago you talked about getting to a million as well.
[Analyst] (JPMorgan): Thanks so much for taking questions. Can you just talk about how Project Rainier is running with Anthropic after its first full quarter? And I think in the release it talks about 500,000 chips, but a few months ago, you talked about getting to 1 million as well. So if you could clarify that. And then maybe just to follow up on Mark's question, are there any financial guardrails or governors in place that we should think about around the spend, just in terms of operating income growth or positive free cash flow? Thanks.
Doug Anmuth: Thanks so much for taking questions. Can you just talk about how Project Rainier is running with Anthropic after its first full quarter? And I think in the release it talks about 500,000 chips, but a few months ago, you talked about getting to 1 million as well. So if you could clarify that. And then maybe just to follow up on Mark's question, are there any financial guardrails or governors in place that we should think about around the spend, just in terms of operating income growth or positive free cash flow? Thanks.
Speaker #5: So if you could clarify that. And then maybe just a follow-up on Mark's question. Are there any financial guardrails or governors in place that we should think about around the spend, just in terms of operating income growth or positive free cash flow?
There is a lot of interest in training at this point, and I think when you, you know, I think people know about our chips capability our chips business, but I'm not sure folks realize how strong a chips company we've become over the last 10 years. You know, if you look at what we've done with training, if you look at what we've done with graviton, which is our CPU chip, which is about 40% Better. Price performance than comparable x86 processors. 90% of the top 1,000 as customers are using graviton, very expansively. If you combine training and graviton, it's well over a 10 billion dollar, uh, annualized run rate business and it's still very early there. So I'm very optimistic about what we're seeing. We have, you know, the, the project reer has gone very well, I think, um, anthropic is quite pleased with it. Uh, We've, we've learned a lot in the process as well. Um, but it's it's early days with what's possible here. This is a big business, that's getting bigger and has a lot of potential and that
I just, you know, I'd briefly comment on your second question that.
Speaker #4: Yeah, I'll start with the Trainium piece. We are very excited about the growth that we see in Trainium and the future that we have there.
Andy Jassy: Yeah, I'll start with the Trainium piece. We are very excited about the growth that we see in Trainium and the future that we have there. You know, I think if you look at what's happened in the early innings of AI over the first few years, you see a lot of usage, but customers are really thirsty for better price performance. Trainium has 30% to 40% better price performance than comparable GPUs, so it's very compelling to customers. You mentioned Project Rainier. Anthropic is building their next, they're training their next Claude model on top of Trainium2, and that's what Project Rainier is. We talked about 500,000 chips there. You will see that continuing to increase.
Andy Jassy: Yeah, I'll start with the Trainium piece. We are very excited about the growth that we see in Trainium and the future that we have there. You know, I think if you look at what's happened in the early innings of AI over the first few years, you see a lot of usage, but customers are really thirsty for better price performance. Trainium has 30% to 40% better price performance than comparable GPUs, so it's very compelling to customers. You mentioned Project Rainier. Anthropic is building their next, they're training their next Claude model on top of Trainium2, and that's what Project Rainier is. We talked about 500,000 chips there. You will see that continuing to increase.
Speaker #4: I think if you look at what's happened in the early innings of AI over the first few years, you see a lot of usage.
Speaker #4: But customers are really thirsty for better price performance. And Trainium has 30 to 40% better price performance than comparable GPUs, so it's very compelling to customers.
Speaker #4: You mentioned Project Rainier. Anthropic is building their next— they're training their next Claude model on top of Trainium 2, and that's what Project Rainier is.
Try to accomplish before that they can do right now. And so we we see this as an unusual opportunity and we are going to invest aggressively here to be the leaders because I, you know, like we've been the last number of years and like, I think we will be moving forward.
Speaker #4: We talked about 500,000 chips there. You will see that continuing to increase. They're also using a fair bit of Trainium 2 for other workloads in their own APIs, beyond just Project Rainier.
Andy Jassy: They're also using a fair bit of Trainium2 for other workloads and their own APIs beyond just Project Rainier. But Trainium is a multi-billion dollar annualized run rate business at this point, and it's fully subscribed. And what you're also seeing is Trainium3, which is the next version of Trainium, which we just started shipping, that's 40% more price performant than Trainium2. And there is very substantial amount of interest there. We expect that nearly all of that supply will be committed by somewhere around the middle of this year. And we're just in the process of building Trainium4. There's very substantial interest in Trainium4, which is coming in 2027, and we're already having conversations about Trainium5.
Andy Jassy: They're also using a fair bit of Trainium2 for other workloads and their own APIs beyond just Project Rainier. But Trainium is a multi-billion dollar annualized run rate business at this point, and it's fully subscribed. And what you're also seeing is Trainium3, which is the next version of Trainium, which we just started shipping, that's 40% more price performant than Trainium2. And there is very substantial amount of interest there. We expect that nearly all of that supply will be committed by somewhere around the middle of this year. And we're just in the process of building Trainium4. There's very substantial interest in Trainium4, which is coming in 2027, and we're already having conversations about Trainium5.
Thank you. The next question comes from the line of Ross Sandler with Barclays. Please proceed with your question.
Speaker #4: But Trainium is a multi-billion dollar annualized run rate business at this point. And it's fully subscribed. And what you're also seeing is Trainium 3, which is the next version of Trainium, which we just started shipping, that's 40% more price performance than Trainium 2.
great and you mentioned a few called back how uh the AI Market was was currently at the topheavy with
Speaker #4: And we have, there is a very substantial amount of interest there. We expect that nearly all of that supply will be committed by somewhere around the middle of this year.
A lot of the spend kind of clustering around a few of the AI native Labs. So, how is that changing? As you look out into 26 and specifically, how do you think you might, uh, extend your relationship with the company? Like openai to maybe help Amazon's AI efforts both on the uh retail side and the AWS side. Thanks a lot.
Speaker #4: And we're just in the process of building Trainium 4. There's very substantial interest in Trainium 4, which is coming in 2027. And we're already having conversations about Trainium 5.
Speaker #4: So there is a lot of interest in Trainium at this point. And I think people know about our chip's capability and our chip's business, but I'm not sure folks realize how strong a chips company we've become over the last 10 years.
Andy Jassy: So there is a lot of interest in Trainium at this point, and I think when you... You know, I, I think people know about our chips capability and our chips business, but I'm not sure folks realize how strong a chips company we've become over the last 10 years. You know, if you look at what we've done with Trainium, if you look at what we've done with Graviton, which is our CPU chip, which is about 40% better price performance than comparable x86 processors, 90% of the top 1,000 AWS customers are using Graviton very expansively. If you combine Trainium and Graviton, it's well over a $10 billion annualized run rate business, and it's still very early there. So I'm very optimistic about what we're seeing. We have, you know, the, the Project Rainier has gone very well.
Andy Jassy: So there is a lot of interest in Trainium at this point, and I think when you... You know, I, I think people know about our chips capability and our chips business, but I'm not sure folks realize how strong a chips company we've become over the last 10 years. You know, if you look at what we've done with Trainium, if you look at what we've done with Graviton, which is our CPU chip, which is about 40% better price performance than comparable x86 processors, 90% of the top 1,000 AWS customers are using Graviton very expansively. If you combine Trainium and Graviton, it's well over a $10 billion annualized run rate business, and it's still very early there. So I'm very optimistic about what we're seeing. We have, you know, the, the Project Rainier has gone very well.
Yeah, the way I would describe what um we see right now in the AI um space is, it's really kind of a barbelled um um market demand where, you know, on 1 end you have the AI Labs who are spending gobs and gobs of compute right now. Um along with. And what I would consider a couple runaway uh applications. Um and then at the other side of the barbell you've got,
Speaker #4: If you look at what we've done with Trainium, if you look at what we've done with Graviton, which is our CPU chip, which is about 40% better price performance than comparable X86 processors, 90% of the top 1,000 AWS customers are using Graviton very expansively.
Speaker #4: If you combine Trainium and Graviton, it's well over a $10 billion annualized run rate business. And it's still very early there. So I'm very optimistic about what we're seeing.
Speaker #4: The Project Rainier has gone very well. I think Anthropic is quite pleased with it. We've learned a lot in the process as well. But it's early days with what's possible here.
Andy Jassy: I think, Anthropic is quite pleased with it. We've learned a lot in the process as well, but it's early days with what's possible here. This is a big business that's getting bigger and has a lot of potential. I just, you know, I'd briefly comment on your second question that, you know, we are, as I mentioned, this is what... You know, I think this is an extraordinarily unusual opportunity to forever change the size of AWS and Amazon as a whole. I think it also is an extraordinary opportunity for companies, to change all their customer experiences, and for startups to be able to build brand new experiences and businesses that would have taken much longer to try to accomplish before than they can do right now.
Andy Jassy: I think, Anthropic is quite pleased with it. We've learned a lot in the process as well, but it's early days with what's possible here. This is a big business that's getting bigger and has a lot of potential. I just, you know, I'd briefly comment on your second question that, you know, we are, as I mentioned, this is what... You know, I think this is an extraordinarily unusual opportunity to forever change the size of AWS and Amazon as a whole. I think it also is an extraordinary opportunity for companies, to change all their customer experiences, and for startups to be able to build brand new experiences and businesses that would have taken much longer to try to accomplish before than they can do right now.
Speaker #4: This is a big business that's getting bigger and has a lot of potential. And I'd just briefly comment on your second question that we are—as I mentioned, this is what I think is an extraordinarily unusual opportunity to forever change the size of AWS and Amazon as a whole.
Speaker #4: I think it also is an extraordinary opportunity for companies to change all their customer experiences and for startups to be able to build brand new experiences and businesses that would have taken much longer to try to accomplish before that they can do right now.
Speaker #4: And so we see this as an unusual opportunity. And we are going to invest aggressively here to be the leaders, because, like we've been the last number of years, and like I think we will be moving forward.
Andy Jassy: And so we see this as an unusual opportunity, and we are gonna invest aggressively here to be the leaders, 'cause I, you know, like we've been the last number of years and like I think we will be moving forward.
Andy Jassy: And so we see this as an unusual opportunity, and we are gonna invest aggressively here to be the leaders, 'cause I, you know, like we've been the last number of years and like I think we will be moving forward.
Was working on moving those and then putting them into production, but I think that middle part of the barbell, very well may end up being the, the largest and the most durable. And I would put in the middle of that barbell too. By the way, I would put just the all together. Brand new, um, business as an applications that companies build that right from the get-go run in production on top of uh, Ai. And so I think that, um, you know, it to me when I look at this. Um, what's happening? It's kind of unbelievable. If you look at the demand of what you're seeing already with AI, but the Lion Share of that demand is still yet to come in the middle of that barbell and that will come over time. It will come as you have more and more companies um with AI Talent is more and more people get educated with that AI background, as inference continues to get less expensive. And that's a big piece of what we're trying to do with, with training them and our and our Hardware strategy. Um, and
Speaker #4: forward. Thank
Speaker #1: You. The next question comes from the line of Ross Sandler with Barclays. Please proceed with your question.
Operator: Thank you. The next question comes from the line of Ross Sandler with Barclays. Please proceed with your question.
Operator: Thank you. The next question comes from the line of Ross Sandler with Barclays. Please proceed with your question.
Speaker #1: question. Great.
[Analyst] (Barclays): Great. Andy, you mentioned a few calls back how the AI market was currently a bit top-heavy, with a lot of the spend kind of clustering around a few of the AI native labs. So how is that changing as you look out into 2026? And specifically, how do you think you might extend your relationship with a company like OpenAI to maybe help Amazon's AI efforts, both on the retail side and the AWS side? Thanks a lot.
Ross Sandler: Great. Andy, you mentioned a few calls back how the AI market was currently a bit top-heavy, with a lot of the spend kind of clustering around a few of the AI native labs. So how is that changing as you look out into 2026? And specifically, how do you think you might extend your relationship with a company like OpenAI to maybe help Amazon's AI efforts, both on the retail side and the AWS side? Thanks a lot.
Speaker #6: And you mentioned a few calls back how the AI market was currently a bit top-heavy with a lot of the spend kind of clustering around a few of the AI-native labs.
Uh, you know, and as companies start to have success in moving those workloads to, you know, further and further, success in moving, those workloads. Um, uh, um, to to run on top of AI. So I think there's it's just a huge opportunity. It's still in the relative early stages, even though it's growing at a very, like, an unprecedented clip. As we've talked about, you know, and then I think, how do we say? See our
Speaker #6: So how is that changing as you look out into '26? And specifically, how do you think you might extend your relationship with a company like OpenAI to maybe help Amazon's AI efforts both on the retail side and the AWS side?
Speaker #6: Thanks a lot.
Speaker #4: Yeah, the way I would describe what we see right now in the AI space is it's really kind of a barbelled market demand. Where on one end, you have the AI labs who are spending gobs and gobs of compute right now.
Andy Jassy: Yeah. The way I would describe what we see right now in the AI space is it's really kind of a barbelled market demand, where, you know, on one end you have the AI labs who are spending gobs and gobs of compute right now, along with, and what I would consider a couple runaway applications. And then at the other side of the barbell, you've got a lot of enterprises who are getting value out of AI in doing productivity and cost avoidance types of workloads. These are things like customer service or business process automation or some of the fraud pieces. And then in that middle of the barbell are all the enterprise production workloads.
Andy Jassy: Yeah. The way I would describe what we see right now in the AI space is it's really kind of a barbelled market demand, where, you know, on one end you have the AI labs who are spending gobs and gobs of compute right now, along with, and what I would consider a couple runaway applications. And then at the other side of the barbell, you've got a lot of enterprises who are getting value out of AI in doing productivity and cost avoidance types of workloads. These are things like customer service or business process automation or some of the fraud pieces. And then in that middle of the barbell are all the enterprise production workloads.
Speaker #4: Along with what I would consider a couple of runaway applications. And then at the other side of the barbell, you've got a lot of enterprises who are getting value out of AI in doing productivity and cost avoidance types of workloads.
Uh, relationships extending with other companies, like openai. Uh, you know, I would tell you that this movement and what's happening in in AI is. Um, it's very broad, it's going to be a lot of companies. It is a lot of companies already. It's um um, there's a number of AI Labs, but almost every company you talk to almost every conversation we have on the AWS side starts with AI, you know. And and so you it, you know, we have very significant relationships with a lot of different companies. Um uh you know I think we we announced an agreement with openai in November. We're excited about that agreement. It's a big 1. Um, you know we have a lot of respect for the company and and uh, we hope to continue to extend our partnership over time, but this, you know, this AI movement is not going to be a couple companies. It's going to be thousands of companies over time.
Speaker #4: These are things like customer service or business process automation, or some of the fraud pieces. And then, in that middle of the barbell, are all the enterprise production workloads.
Thank you. The next question comes from the line of Michael Morton with Moffett Nathanson. Please proceed with your question.
Speaker #4: And I would say that the enterprises are in various stages at this point of evaluating how to move those, working on moving those, and then putting them into production.
Andy Jassy: I would say that the enterprises are in various stages at this point of evaluating how to move those, working on moving those, and then putting them into production. But I think that middle part of the barbell very well may end up being the largest and the most durable. And I would put in the middle of that barbell too, by the way, I would put just the altogether brand-new businesses and applications that companies build that right from the get-go run in production on top of AI.
Andy Jassy: I would say that the enterprises are in various stages at this point of evaluating how to move those, working on moving those, and then putting them into production. But I think that middle part of the barbell very well may end up being the largest and the most durable. And I would put in the middle of that barbell too, by the way, I would put just the altogether brand-new businesses and applications that companies build that right from the get-go run in production on top of AI.
Hey, good evening. Thank you for the question. Uh, this 1 on the retail business, uh, Andy's talked about how you're passionate, this is going to change experience as the board and you've shared some encouraging data points on ruthless.
Speaker #4: But I think that middle part of the barbell very well may end up being the largest and the most durable. And I would put in the middle of that barbell too, by the way, I would put just the altogether brand new businesses and applications that companies build that right from the get-go run in production on top of AI.
And we're seeing all the other internet platforms, roll out, a gentic protocols. I would love to see how you think this plays out for the retail business.
And the on-site ads portion of the retail business is what seems like it could be a compression in the funnel as consumers, get better answers over time. Uh, anything there would be great. Thank you.
Speaker #4: And so I think that to me, when I look at this and what's happening, it's kind of unbelievable if you look at the demand of what you're seeing already with AI, but the lion's share of that demand is still yet to come in the middle of that barbell.
Andy Jassy: And so I think that, you know, to me, when I look at this, and what's happening, it's kind of unbelievable if you look at the demand of what you're seeing already with AI, but the lion's share of that demand is still yet to come in the middle of that barbell, and that will come over time. It will come as you have more and more companies with AI talent, as more and more people get educated with that AI background, as inference continues to get less expensive, and that's a big piece of what we're trying to do with Trainium and our hardware strategy. You know, as companies start to have further and further success in moving those workloads to run on top of AI.
Andy Jassy: And so I think that, you know, to me, when I look at this, and what's happening, it's kind of unbelievable if you look at the demand of what you're seeing already with AI, but the lion's share of that demand is still yet to come in the middle of that barbell, and that will come over time. It will come as you have more and more companies with AI talent, as more and more people get educated with that AI background, as inference continues to get less expensive, and that's a big piece of what we're trying to do with Trainium and our hardware strategy. You know, as companies start to have further and further success in moving those workloads to run on top of AI.
Speaker #4: And that will come over time. It will come as you have more and more companies with AI talent, as more and more people get educated with that AI background, as inference continues to get less expensive.
Speaker #4: And that's a big piece of what we're trying to do with Trainium and our hardware strategy. And as companies start to have success in moving those workloads to further and further success and moving those workloads to run on top of AI.
Speaker #4: So I think it's just a huge opportunity. It's still in the relative early stages, even though it's growing at a very unprecedented clip, as we've talked about.
Andy Jassy: So I think it's just a huge opportunity. It's still in the relative early stages, even though it's growing at a very, like, unprecedented clip, as we've talked about. You know, and then I think, how do we see our relationships extending with other companies like OpenAI. You know, I would tell you that this movement and what's happening in AI is, it's very broad. It's gonna be a lot of companies. It is a lot of companies already. There's a number of AI labs, but almost every company you talk to, almost every conversation we have on the AWS side starts with AI, you know? And so you, it. You know, we have very significant relationships with a lot of different companies. You know, I think we announced an agreement with OpenAI in November.
Andy Jassy: So I think it's just a huge opportunity. It's still in the relative early stages, even though it's growing at a very, like, unprecedented clip, as we've talked about. You know, and then I think, how do we see our relationships extending with other companies like OpenAI. You know, I would tell you that this movement and what's happening in AI is, it's very broad. It's gonna be a lot of companies. It is a lot of companies already. There's a number of AI labs, but almost every company you talk to, almost every conversation we have on the AWS side starts with AI, you know? And so you, it. You know, we have very significant relationships with a lot of different companies. You know, I think we announced an agreement with OpenAI in November.
I'm very, uh, I'm very optimistic about, um, the customer experience that will ultimately be what customers use, for agentic shopping. And I think it's good for customers. I think it's going to make it easier for them. It's a big piece of why we've invested a significantly as we have in our own shopping assistant in Rufus. And if you haven't checked out roofers recently, I really encourage you to do. So it's gotten much much better and keeps getting better every month. And, you know, we have about 3, we have 300 million customers who use Rufus in 2025, uh, customers who use Rufus are about 60% more likely to complete a purchase. Um, and so you, you just, you know, you're seeing a lot of usage of it and a lot of growth and and um, and I think it's very useful and, you know, I think at the same time,
Speaker #4: And then I think how do we see our relationships extending with other companies like OpenAI? I would tell you that this movement and what's happening in AI is very broad.
Speaker #4: It's going to be a lot of companies. It is a lot of companies already. There's a number of AI labs, but almost every company you talk to, almost every conversation we have on the AWS side, starts with AI.
Speaker #4: And so we have very significant relationships with a lot of different companies. I think we announced an agreement with OpenAI in November. We're excited about that agreement.
Uh, we will have relationships with third-party um, horizontal agents that uh, can enable shopping as well. We have to collectively, figure out a better customer experience, you know, it's still, you know, these horizontal agents don't have any of your, um, shopping history. They get a lot of the product details wrong. They get a lot of the pricing wrong and so, you know, we, we have to try to find a customer experience together that's better. And, you know, a value exchange. That makes sense for both parties, but I'm very hopeful that we'll get there over time. We continue to have a number of conversations and then I think you're going to have to look, um, at as time goes on,
Andy Jassy: We're excited about that agreement. It's a big one, and we have a lot of respect for the company, and we hope to continue to extend our partnership over time. But this, you know, this AI movement is not gonna be a couple companies. It's gonna be thousands of companies over time.
Andy Jassy: We're excited about that agreement. It's a big one, and we have a lot of respect for the company, and we hope to continue to extend our partnership over time. But this, you know, this AI movement is not gonna be a couple companies. It's gonna be thousands of companies over time.
Speaker #4: It's a big one, and we have a lot of respect for the company. We hope to continue to extend our partnership over time.
Speaker #4: But this AI movement is not going to be a couple of companies. It's going to be thousands of companies over
Speaker #4: time. Thank you.
Operator: Thank you. The next question comes from the line of Michael Morton with MoffettNathanson. Please proceed with your question.
Operator: Thank you. The next question comes from the line of Michael Morton with MoffettNathanson. Please proceed with your question.
Speaker #1: The next question comes from the line of Michael Morton with MoffettNathanson. Please proceed with your question.
Speaker #1: The next question comes from the line of Michael Morton with Moffitt Nathanson. Please proceed with your question. Hi, good
[Analyst] (MoffettNathanson): Hi, good evening. Thank you for the question. This one's on the retail business. Andy, you've talked about how you're passionate. This is going to change experiences across the board, and you've shared some encouraging data points on Rufus. And we're seeing all the other internet platforms roll out agentic protocols. I would love to see how you think this plays out for the retail business, and the on-site ads portion of the retail business is what seems like it could be a compression in the funnel as consumers get better answers over time. Anything there would be great. Thank you.
Michael Morton: Hi, good evening. Thank you for the question. This one's on the retail business. Andy, you've talked about how you're passionate. This is going to change experiences across the board, and you've shared some encouraging data points on Rufus. And we're seeing all the other internet platforms roll out agentic protocols. I would love to see how you think this plays out for the retail business, and the on-site ads portion of the retail business is what seems like it could be a compression in the funnel as consumers get better answers over time. Anything there would be great. Thank you.
Speaker #7: Evening. Thank you for the question. This one's on the retail business. Andy's talked about how you're passionate. This is done through change, experiences across the board.
Speaker #7: And you've shared some encouraging data points on Rufus, and we're seeing all the other internet platforms roll out agentic protocols. I would love to see how you think this plays out for the retail business and the onsite ads.
Speaker #7: Portion of the retail business is what seems like it could be a compression in the funnel as consumers get better answers over
Speaker #7: time. Anything there would be great. Thank I'm
And, you know, it's still a relatively small portion of the overall, um, traffic and sales, but, you know, of that fraction. You, you have to ask how many, how many consumers are going to prefer using a horizontal agent, where it's kind of a middle person between the retailer and the consumer versus wanting to use a great agent from that retailer, that has all its shopping history and then has all the data right there and makes it easy. If you're just, you know, spear fishing for something to shop for it, right there. Or if you want to do Discovery, you can do it there and it's got the best data on shopping. I, I think a lot of customers are ultimately going to choose to use a great shopping agent from that retailer. Because if you think about what consumers really want in retail and in a retailer, they want really broad selection. They want low prices, they want really fast delivery. And then they, they want a retailer that, um, they can trust and that takes care of them. And I think
Andy Jassy: I'm very, I'm very optimistic about the customer experience that will ultimately be what customers use for agentic shopping, and I think it's good for customers. I think it's gonna make it easier for them. It's a big piece of why we've invested as significantly as we have in our own shopping assistant in Rufus. And, if you haven't checked out Rufus recently, I really encourage you to do so. It's gotten much, much better, and it keeps getting better every month. And, you know, we have 300 million customers who used Rufus in 2025. Customers who used Rufus are about 60% more likely to complete a purchase.
Andy Jassy: I'm very, I'm very optimistic about the customer experience that will ultimately be what customers use for agentic shopping, and I think it's good for customers. I think it's gonna make it easier for them. It's a big piece of why we've invested as significantly as we have in our own shopping assistant in Rufus. And, if you haven't checked out Rufus recently, I really encourage you to do so. It's gotten much, much better, and it keeps getting better every month. And, you know, we have 300 million customers who used Rufus in 2025. Customers who used Rufus are about 60% more likely to complete a purchase.
Speaker #4: Very optimistic about the customer experience—that will ultimately be what customers use for agentic shopping. And I think it's good for customers. I think it's going to make it easier for them.
Speaker #4: And it's a big piece of why we've invested a significantly as we have in our own shopping assistant in Rufus. And if you haven't checked out Rufus recently, I really encourage you to do so.
Horizontal agents are pretty good at aggregating selection, but retailers are are much better at at doing all 4 of those those items. And so I I'm very optimistic that, um, that people will use our shopping agent. It's off to a great start. I also expect that we'll work with other third-party agents over time as we work on the issues that I mentioned earlier.
Speaker #4: It's gotten much, much better and keeps getting better every month. And we have about three we have 300 million customers who use Rufus in 2025.
Thank you. The next question comes from the line of Brian, Noak with Morgan Stanley. Please proceed with your question.
Speaker #4: Customers who use Rufus are about 60% more likely to complete a purchase. And so you just you're seeing a lot of usage of it and a lot of growth.
Andy Jassy: And so you, you just, you know, you're seeing a lot of usage of it and a lot of growth, and, and, and I think it's very useful. And, you know, I think at the same time, we will have relationships with third-party, horizontal agents that can enable shopping as well. We have to collectively figure out a better customer experience. You know, it's, it's still, you know, these horizontal agents don't have any of your, shopping history. They get a lot of the product details wrong. They get a lot of the pricing wrong. And so, you know, we have to try to find a customer experience together that's better and, you know, a value exchange that makes sense for both parties. But I'm very hopeful that we'll get there over time. We continue to have a number of conversations.
Andy Jassy: And so you, you just, you know, you're seeing a lot of usage of it and a lot of growth, and, and, and I think it's very useful. And, you know, I think at the same time, we will have relationships with third-party, horizontal agents that can enable shopping as well. We have to collectively figure out a better customer experience. You know, it's, it's still, you know, these horizontal agents don't have any of your, shopping history. They get a lot of the product details wrong. They get a lot of the pricing wrong. And so, you know, we have to try to find a customer experience together that's better and, you know, a value exchange that makes sense for both parties. But I'm very hopeful that we'll get there over time. We continue to have a number of conversations.
Speaker #4: And I think it's very useful. And I think, at the same time, we will have relationships with third-party horizontal agents that can enable shopping as well.
Speaker #4: We have to collectively figure out a better customer experience. It's still these horizontal agents don't have any of your shopping history. They get a lot of the product details wrong.
Speaker #4: They get a lot of the pricing wrong. And so we have to try to find a customer experience together that's better. And a value exchange that makes sense for both parties.
Speaker #4: But I'm very hopeful that we'll get there over time. We continue to have a number of conversations and then I think you're going to have to look at as time goes on, which types of which shopping agents or consumers are going to use.
Andy Jassy: And then I think you're gonna have to look at, as time goes on, you know, which types of, you know, which shopping agents are consumers gonna use. And it kind of reminds me in some ways of the early days of kinda all the search engines that were referring traffic to retailers.
Andy Jassy: And then I think you're gonna have to look at, as time goes on, you know, which types of, you know, which shopping agents are consumers gonna use. And it kind of reminds me in some ways of the early days of kinda all the search engines that were referring traffic to retailers.
Thanks for taking my question. Um Andy I want to ask you 1 about uh the the global retail business this year. I know there's a lot of areas of investment in it that you're talking about to sort of make uh improve the service. Make it more durable over the long term Etc. But I'm assuming they're also sources of efficiency, you expect to see this year. So can you sort of help us understand both sides of the Ledger on retail this year? What are some of the areas where you see the potential for sources of efficiency and cost to serve savings? And then where should we be thinking about the areas of investment to sort of drive more durable growth you know, robotics Etc. How does that sort of break down? Yeah so I would say um on the side of continuing to invest to um to keep growing the retail business, you know, the the kind of core drivers of demand continued to be the same. You know, we're we're going to work really hard to expand selection and and you you've seen what we've done over the last several years, you know the expand the expansion of Select
Speaker #4: And it kind of reminds me in some ways of the early days of kind of all the search engines that were referring traffic to retailers.
Speaker #4: And it's still a relatively small portion of the overall traffic and sales. But of that fraction, you have to ask how many consumers are going to prefer using a horizontal agent where it's kind of a middle person between the retailer and the consumer.
Andy Jassy: You know, it's still a relatively small portion of the overall traffic and sales, but you know, of that fraction, you, you have to ask how many, how many consumers are gonna prefer using a horizontal agent, where it's kind of a middle person between the retailer and the consumer, versus wanting to use a great agent from that retailer that has all its shopping history and that has all the data right there and makes it easy if you're just, you know, spearfishing for something to shop for it right there, or if you wanna do discovery, you can do it there, and it's got the best data on shopping. I, I think a lot of customers are ultimately gonna choose to use a great shopping agent from that retailer.
Andy Jassy: You know, it's still a relatively small portion of the overall traffic and sales, but you know, of that fraction, you, you have to ask how many, how many consumers are gonna prefer using a horizontal agent, where it's kind of a middle person between the retailer and the consumer, versus wanting to use a great agent from that retailer that has all its shopping history and that has all the data right there and makes it easy if you're just, you know, spearfishing for something to shop for it right there, or if you wanna do discovery, you can do it there, and it's got the best data on shopping. I, I think a lot of customers are ultimately gonna choose to use a great shopping agent from that retailer.
Speaker #4: Versus wanting to use a great agent from that retailer that has all its shopping history, and that has all the data right there and makes it easy if you're just spearfishing for something to shop for—it's right there. Or if you want to do discovery, you can do it there, and it's got the best data on shopping.
Speaker #4: I think a lot of customers are ultimately going to choose to use a great shopping agent from that retailer. Because if you think about what consumers really want in retail in a retailer, they want really broad selection, they want low prices, they want really fast delivery, and then they want a retailer that they can trust and that takes care of them.
Andy Jassy: 'Cause if you think about what consumers really want in retail, in a retailer, they want really broad selection, they want low prices, they want really fast delivery, and then they want a retailer that they can trust and that takes care of them. And I think horizontal agents are pretty good at aggregating selection, but retailers are much better at doing all four of those items. And so I'm very optimistic that people will use our shopping agent. It's off to a great start. I also expect that we'll work with other third-party agents over time as we work on the issues I mentioned earlier.
Andy Jassy: 'Cause if you think about what consumers really want in retail, in a retailer, they want really broad selection, they want low prices, they want really fast delivery, and then they want a retailer that they can trust and that takes care of them. And I think horizontal agents are pretty good at aggregating selection, but retailers are much better at doing all four of those items. And so I'm very optimistic that people will use our shopping agent. It's off to a great start. I also expect that we'll work with other third-party agents over time as we work on the issues I mentioned earlier.
Ction, uh, has been broad, uh, and you'll see it on both ends of the spectrum. You know, we have a lot more of those luxury Brands, um, that that have um, built presences in Amazon had success and found that we could, um, we could manage their brand, um, presentation the right way, and they've been very happy. I mean, you only have to look at L'Oreal as an example, 2 of just, you know how fast that business is growing and how happy our partners have been. And at the same time, we are working really hard to continue to expand the amount of everyday essentials that we offer our customers and, uh, the, the growth in everyday essentials in our business is really remarkable. As I mentioned in my opening comments and um, you know, 1 out of 3 units. Now that we, um, that we move, uh, are are everyday essentials. And what we find there is that the more, the customers can rely on us for, um, uh, for everyday essentials and, and the lower as
Speaker #4: And I think horizontal agents are pretty good at aggregating selection, but retailers are much better at doing all four of those items. And so I'm very optimistic that people will use our shopping agent.
Speaker #4: It's off to a great start. I also expect that we'll work with other third-party agents over time as we work on the issues I mentioned
ASP items. Uh, they, they just choose to do more of their Downstream shopping with us in, in every way, we're just more front of mind. And so, you know, I think a big piece of why we have captured more and more of those everyday essentials and, um, you see it also in our grocery business with perishables too. It's just our speed of delivery improvements over the last 3 years, has been really marketed. I mean it's it's it's uh customers. It's the 1 thing. I get stopped on the street most often about um which is I just can't
Speaker #4: earlier. Thank you.
Operator: Thank you. The next question comes from the line of Brian Nowak with Morgan Stanley. Please proceed with your question.
Operator: Thank you. The next question comes from the line of Brian Nowak with Morgan Stanley. Please proceed with your question.
Speaker #1: The next question comes from the line of Brian Nowak with Morgan Stanley. Please proceed with your
Speaker #1: question. Thanks for taking my
[Analyst] (Morgan Stanley): Thanks for taking my question. Andy, I wanna ask you one about the global retail business this year. I know there's a lot of areas of investment in it that you're talking about to sort of improve the service, make it more durable over the long term, et cetera, but I'm assuming there are also sources of efficiency you expect to see this year. Can you sort of help us understand both sides of the ledger on retail this year? Where are some of the areas where you see the potential for sources of efficiency and cost to serve savings? And then, where should we be thinking about the areas of investment to sort of drive more durable growth, you know, robotics, et cetera? How does that sort of break down?
Brian Nowak: Thanks for taking my question. Andy, I wanna ask you one about the global retail business this year. I know there's a lot of areas of investment in it that you're talking about to sort of improve the service, make it more durable over the long term, et cetera, but I'm assuming there are also sources of efficiency you expect to see this year. Can you sort of help us understand both sides of the ledger on retail this year? Where are some of the areas where you see the potential for sources of efficiency and cost to serve savings? And then, where should we be thinking about the areas of investment to sort of drive more durable growth, you know, robotics, et cetera? How does that sort of break down?
Speaker #8: Andy, I want to ask you one about the global retail business this year. I know there's a lot of areas of investment in it that you're talking about to sort of improve the service, make it more durable over the long term, etc.
Speaker #8: But I'm assuming there are also sources of efficiency you expect to see this year. So can you sort of help us understand both sides of the ledger on retail this year?
Speaker #8: Where are some of the areas where you see the potential for sources of efficiency and cost-to-serve savings? And then where should we be thinking about the areas of investment to sort of drive more durable growth, down?
Speaker #4: Yeah. So I would say on the side of continuing to invest to keep growing the retail business, the kind of core drivers of demand continue to be the same.
Andy Jassy: Yeah. So I would say on the side of continuing to invest to keep growing the retail business, you know, the kind of core drivers of demand continue to be the same. You know, we're gonna work really hard to expand selection, and you've seen what we've done over the last several years. You know, the expansion of selection has been broad, and you'll see it on both ends of the spectrum. You know, we have a lot more of those luxury brands that have built presences in Amazon, had success, and found that we could manage their brand presentation the right way, and they've been very happy.
Andy Jassy: Yeah. So I would say on the side of continuing to invest to keep growing the retail business, you know, the kind of core drivers of demand continue to be the same. You know, we're gonna work really hard to expand selection, and you've seen what we've done over the last several years. You know, the expansion of selection has been broad, and you'll see it on both ends of the spectrum. You know, we have a lot more of those luxury brands that have built presences in Amazon, had success, and found that we could manage their brand presentation the right way, and they've been very happy.
Speaker #4: We're going to work really hard to expand selection. And you've seen what we've done over the last several years, the expansion of selection has been broad.
Speaker #4: And you'll see it on both ends of the spectrum. We have a lot more of those luxury brands that have built presences on Amazon, had success, and found that we could manage their brand presentation the right way.
Speaker #4: And they've been very happy. I mean, you only have to look at L'Oreal as an example, too, of just how fast that business is growing and how happy our partners have been.
Andy Jassy: I mean, you only have to look at L'Oréal as an example, too, of just, you know, how fast that business is growing and how happy our partners have been. And at the same time, we are working really hard to continue to expand the amount of everyday essentials that we offer our customers. The growth in everyday essentials in our business is really remarkable, as I mentioned in my opening comments. You know, 1 out of 3 units now that we move are everyday essentials. And what we find there is that the more the customers can rely on us for everyday essentials and the lower ASP items, they just choose to do more of their downstream shopping with us in every way. We're just more front of mind.
Andy Jassy: I mean, you only have to look at L'Oréal as an example, too, of just, you know, how fast that business is growing and how happy our partners have been. And at the same time, we are working really hard to continue to expand the amount of everyday essentials that we offer our customers. The growth in everyday essentials in our business is really remarkable, as I mentioned in my opening comments. You know, 1 out of 3 units now that we move are everyday essentials. And what we find there is that the more the customers can rely on us for everyday essentials and the lower ASP items, they just choose to do more of their downstream shopping with us in every way. We're just more front of mind.
Customers who try quick Commerce. Uh, are are shopping with triple the frequency than they did before they tried using quick Commerce. So, those are all areas, I think are pretty exciting, um, that we're expanding. Um you'll see us continue to expand what we're doing in the perishable side too, which we're we're quite excited about and you know, we we are able to deliver perishables same day and thousands of cities around the world now and the cities in which we have those perishables. Um, available 9 of the 10, top items that are ordered in that geography are perishable. So we're we're just having a lot of success with that too and people buy perishables from us. Um after they buy perishables they're shopping with us twice as frequent frequently. So a lot of good things to like there and then you know on the um efficiencies
Speaker #4: And at the same time, we are working really hard to continue to expand the amount of everyday essentials that we offer our customers. And the growth in everyday essentials in our business is really remarkable, as I mentioned in my opening comments.
We are. I mean we always have a very long list of these that we're working on Brian and um, you know, it's true today as well. Like, if you look even, you know, I mentioned, I talked a lot about regionalization.
Speaker #4: And one out of three units now that we move are everyday essentials. And what we find there is that the more the customers can rely on us for everyday essentials and the lower ASP items, they just choose to do more of their downstream shopping with us in every way.
Speaker #4: We're just more front of mind. And so, I think a big piece of why we have captured more and more of those everyday business with perishables, too, is just our speed of delivery.
Uh, in our fulfillment Network and particularly in the US, you know, over the last couple of years. And and I said, we weren't done honing that and that's true. It's just we, you know, we don't talk about it every time. But if you look at what we've done there, we've extended the number of regions. You know, it was 8. It's now 10, we've extended regionalization to um what we do with our inbound. Um delivery to be much more efficient and being able to get more items closer to customers more quickly.
Andy Jassy: And so, you know, I think a big piece of why we have captured more and more of those everyday essentials, and you see it also in our grocery business with perishables, too. It's just our speed of delivery improvements over the last three years has been really market. I mean, it's the one thing I get stopped on the street most often about, which is: I just can't believe how quickly from when I order something, I get it to my door and how reliable you are.
Andy Jassy: And so, you know, I think a big piece of why we have captured more and more of those everyday essentials, and you see it also in our grocery business with perishables, too. It's just our speed of delivery improvements over the last three years has been really market. I mean, it's the one thing I get stopped on the street most often about, which is: I just can't believe how quickly from when I order something, I get it to my door and how reliable you are.
Speaker #4: Improvements over the last three years have been really market. I mean, it's customers, it's the one thing I get stopped on the street most often about, which is I just can't believe how quickly from when I order something, I get it to my door and how reliable you are.
Speaker #4: I think along that speed of delivery piece, it's also quite interesting what's happening with QuickCommerce. And we have this offering called Amazon Now that we've largely started outside the US and India and the UAE and Mexico that gets thousands of items to customers within 30 minutes.
Andy Jassy: I think, you know, along that speed of delivery piece, it's also quite interesting what's happening with quick commerce, you know, and we have this offering called Amazon Now, that we've largely started outside the US, India, the UAE, and Mexico, that gets thousands of items to customers within 30 minutes. It really is quite interesting how quickly that is growing. And I think that it's just another one of those things like everyday essentials, that when you're able to order more and more from Amazon, you just think of Amazon first, if it's a great experience that we're offering for whatever you're looking for.
Andy Jassy: I think, you know, along that speed of delivery piece, it's also quite interesting what's happening with quick commerce, you know, and we have this offering called Amazon Now, that we've largely started outside the US, India, the UAE, and Mexico, that gets thousands of items to customers within 30 minutes. It really is quite interesting how quickly that is growing. And I think that it's just another one of those things like everyday essentials, that when you're able to order more and more from Amazon, you just think of Amazon first, if it's a great experience that we're offering for whatever you're looking for.
Speaker #4: And it really is, it's quite interesting how quickly that is growing. And I think that it's just another one of those things like everyday essentials that when you're able to order more and more from Amazon, you just think of Amazon first.
Um, you know, we have uh, made a lot of we're doing a lot of work and we've made a huge amount of progress in being able to get more units into each box. And as we're able to get more units into each each box. It, you know, obviously saves shipments and and and we drive better operating income um when we do that and we've made very significant progress there but have a lot more planned. It's part of, by the way, that Improvement is part of what helps us do things like I was talking about earlier in in adding to a delivery um, in near real time. Uh and then you know, robotics as you mentioned is another big 1 for us. Um, you know, we have over a million robots today in our fulfillment Network. Um, they take care of all sorts of functions but still a fraction of what I think we're going to be able to um, enable over time which will allow our, you know, we'll always have a lot of, um, people that we employ in our fulfillment network. But they'll, you know, they'll leave to the robotics things that, you know, um, that that are more repetitive. So it's better, um,
Speaker #4: If it's a great experience that we're offering for whatever you're looking for. But in our, if you look in India, which is the place we've rolled out QuickCommerce the fastest, customers who try QuickCommerce are shopping with triple the frequency than they did before they tried us on QuickCommerce.
Andy Jassy: But, if you look in India, which is the place we've rolled out quick commerce the fastest, customers who try quick commerce are shopping with triple the frequency than they did before they tried us in quick commerce. So those are all areas I think are pretty exciting that we're expanding. You'll see us continue to expand what we're doing on the perishable side, too, which we're quite excited about. And, you know, we are able to deliver perishables same day in thousands of cities around the world now. In the cities in which we have those perishables available, nine of the 10 top items that are ordered in that geography are perishables. So we're just having a lot of success with that, too.
Andy Jassy: But, if you look in India, which is the place we've rolled out quick commerce the fastest, customers who try quick commerce are shopping with triple the frequency than they did before they tried us in quick commerce. So those are all areas I think are pretty exciting that we're expanding. You'll see us continue to expand what we're doing on the perishable side, too, which we're quite excited about. And, you know, we are able to deliver perishables same day in thousands of cities around the world now. In the cities in which we have those perishables available, nine of the 10 top items that are ordered in that geography are perishables. So we're just having a lot of success with that, too.
productivity for the business business more safe for our, um, teammates. And there's real cost efficiencies in that as well. So a lot on both sides of the Ledger as always,
Speaker #4: So those are all areas I think are pretty exciting that we're expanding. You'll see us continue to expand what we're doing in the perishable side, too, which we're quite excited about.
Thank you. And our final question comes from the line of Eric Sheridan with Goldman Sachs, please proceed with your question.
Speaker #4: And we are able to deliver perishables same day in thousands of cities around the world now. And in the cities in which we have those perishables available, 9 of the top 10 items that are ordered in that geography are perishables.
Speaker #4: So we're just having a lot of success with that, too. And people who buy perishables from us, after they buy perishables, they're shopping with us twice as frequently.
Andy Jassy: And people who buy perishables from us, after they buy perishables, they're shopping with us twice as frequently. So a lot of good things to like there. And then, you know, on the efficiencies, I mean, we always have a very long list of these that we're working on, Brian. And you know, it's true today as well. Like, if you look, even, you know, I mentioned, I talked a lot about regionalization in our fulfillment network, and particularly in the US, you know, over the last couple of years. And I said we weren't done honing that, and that's true. It's just, you know, we don't talk about it every time. But if you look at what we've done there, we've extended the number of regions. You know, it was 8, it's now 10.
Andy Jassy: And people who buy perishables from us, after they buy perishables, they're shopping with us twice as frequently. So a lot of good things to like there. And then, you know, on the efficiencies, I mean, we always have a very long list of these that we're working on, Brian. And you know, it's true today as well. Like, if you look, even, you know, I mentioned, I talked a lot about regionalization in our fulfillment network, and particularly in the US, you know, over the last couple of years. And I said we weren't done honing that, and that's true. It's just, you know, we don't talk about it every time. But if you look at what we've done there, we've extended the number of regions. You know, it was 8, it's now 10.
Thanks so much for taking the question, maybe a few parts just on AWS. Can you speak to the current state of your Revenue backlog, as of Q4 and also discuss a little bit about what you see, both for internal. Use cases and external client, needs with respect to any imbalance between supply and demand around AI efforts. And how you think about closing the gap on those as more capacity comes online through 2026. Thank you.
Yeah, that's a lot of parts. Um uh, I'll start with the first 1, uh, which is
Speaker #4: So a lot of good things to like there. And then on the efficiencies, we are, I mean, we always have a very long list of these.
Speaker #4: That we're working on, Brian. And it's true today as well. If you look, even I mentioned I talked a lot about regionalization in our fulfillment network, particularly in the US, over the last couple of years.
Speaker #4: And I said we weren't done honing that. And that's true. It's just we don't talk about it every time. But if you look at what we've done there, we've extended the number of regions it was eight.
Uh, I'm backlogged, uh, um, our backlog is 244 billion dollars, um, that's up 40% year-over-year. I think it's up. Uh, 22% quarter over quarter. Um, uh, you know, we have, and we have a lot of deals that are in the pipeline. Um, there's just a, as I mentioned earlier, there is a lot of demand for AWS right now, um uh, in the AI space, and also in in in the core AWS space.
Speaker #4: now 10. We've extended It's regionalization to what we do with our inbound delivery to be much more efficient and being able to get more items closer to customers more quickly.
Andy Jassy: We've extended regionalization to what we do with our inbound delivery to be much more efficient, being able to get more items closer to customers more quickly. You know, we have made a lot of progress in being able to get more units into each box. And as we're able to get more units into each box, it, you know, it obviously saves shipments, and we drive better operating income when we do that. And we've made very significant progress there, but have a lot more planned. It's part of, by the way, that improvement is part of what helps us do things like I was talking about earlier in adding to a delivery in near real time.
Andy Jassy: We've extended regionalization to what we do with our inbound delivery to be much more efficient, being able to get more items closer to customers more quickly. You know, we have made a lot of progress in being able to get more units into each box. And as we're able to get more units into each box, it, you know, it obviously saves shipments, and we drive better operating income when we do that. And we've made very significant progress there, but have a lot more planned. It's part of, by the way, that improvement is part of what helps us do things like I was talking about earlier in adding to a delivery in near real time.
um, your second question was uh, internal and external use cases, um,
Speaker #4: We have made a lot of, we're doing a lot of work, and we've made a huge amount of progress in being able to get more units into each box.
Speaker #4: And as we're able to get more units into each box, it obviously saves shipments, and we drive better operating income when we do that.
Speaker #4: And we've made very significant progress there, but have a lot more planned. It's part of—by the way—that improvement is part of what helps us do things.
I would and and and then the impact around supply and demand, uh, you know, the vast majority of our um uh the capital that we spend and the capacity that we have is consumed by external customers. Uh, we have all Amazon has always been a very large AWS customer very helpful, AWS Customer because they're very demanding and and they use the services um very expansively and stretch the limits. Um, as we launch things.
Speaker #4: Like I was talking about earlier, in adding to a delivery, in near real time. And then robotics, as you mentioned, is another big one for us.
Andy Jassy: And then, you know, robotics, as you mentioned, is another big one for us. You know, we have over 1 million robots today in our fulfillment network. They take care of all sorts of functions, but still a fraction of what I think we're gonna be able to enable over time, which will allow our... You know, we'll always have a lot of people that we employ in our fulfillment network, but they'll, you know, they'll leave to the robotics things that, you know, that are more repetitive, so it's better productivity for the business, more safe for our teammates, and there's real cost efficiencies in that as well. So a lot on both sides of the ledger, as always.
Andy Jassy: And then, you know, robotics, as you mentioned, is another big one for us. You know, we have over 1 million robots today in our fulfillment network. They take care of all sorts of functions, but still a fraction of what I think we're gonna be able to enable over time, which will allow our... You know, we'll always have a lot of people that we employ in our fulfillment network, but they'll, you know, they'll leave to the robotics things that, you know, that are more repetitive, so it's better productivity for the business, more safe for our teammates, and there's real cost efficiencies in that as well. So a lot on both sides of the ledger, as always.
Um, so they've always been a very important big customer, but always a very small fraction of the total and that's true today in, you know, in AI as as well as you know, the overall AWS business.
Speaker #4: We have over a million robots today in our fulfillment network. They take care of all sorts of functions, but it's still a fraction of what I think we're going to be able to enable over time, which will allow our—we'll always have a lot of people that we employ in our fulfillment network, but they'll leave to the robotics things that are more repetitive.
Speaker #4: So it's better productivity for the business, more safe for our teammates, and there's real cost efficiencies in that as well. So a lot on both sides of the ledger, as
Um AI. We have over a thousand uh AI applications that we've either um uh um deployed or in the process of building and uh, they range from our shopping assistant, uh, in Rufus that we were just talking about to oaca plus, which is a really large scale generative AI application.
Speaker #4: always. Thank you.
Operator: Thank you. And our final question comes from the line of Eric Sheridan with Goldman Sachs. Please proceed with your question.
Operator: Thank you. And our final question comes from the line of Eric Sheridan with Goldman Sachs. Please proceed with your question.
Speaker #1: And our final question. Comes from the line of Eric Sheridan with Goldman Sachs. Please proceed with your
Speaker #1: question. Thanks so much
[Analyst] (Goldman Sachs): Thanks so much for taking the question. Maybe a few parts just on AWS. Can you speak to the current state of your revenue backlog as of Q4? And also discuss a little bit about what you see, both for internal use cases and external client needs, with respect to any imbalance between supply and demand around AI efforts, and how you think about closing the gap on those as more capacity comes online through 2026. Thank you.
Eric Sheridan: Thanks so much for taking the question. Maybe a few parts just on AWS. Can you speak to the current state of your revenue backlog as of Q4? And also discuss a little bit about what you see, both for internal use cases and external client needs, with respect to any imbalance between supply and demand around AI efforts, and how you think about closing the gap on those as more capacity comes online through 2026. Thank you.
Speaker #2: for taking the question. Maybe a few parts just on AWS. Can you speak to the current state of your revenue backlog as of Q4?
To applications in our fulfillment Network, that allows us to have more accurate forecasting predictions to how we do customer service, and and our customer service, um, chatbot, uh, to how we are making it much easier for Brands, uh, to create advertisements, and to optimize all their campaigns across the full funnel of advertising options. We have
Speaker #2: And also discuss a little bit about what you see both for internal use cases and external client needs with respect to any imbalance between supply and demand around AI efforts and how you think about closing the gap on those as more capacity comes online through 2026.
Speaker #2: Thank you.
Speaker #1: Yeah, that's a lot of parts. I'll start with the first one, which is on backlog. Our backlog is 244 billion dollars. That's up 40% year over year.
Andy Jassy: Yeah, that's a lot of parts. I'll start with the first one, which is, on backlog. Our backlog is $244 billion. That's up 40% year over year. I think it's up 22% quarter over quarter. You know, we have and we have a lot of deals that are in the pipeline. There's just a... As I mentioned earlier, there is a lot of demand for AWS right now, in the AI space and also in the core AWS space. Your second question was, internal and external use cases. I would... And, and, and then the impact around supply and demand. You know, the vast majority of our, the capital that we spend and the capacity that we have is consumed by external customers.
Andy Jassy: Yeah, that's a lot of parts. I'll start with the first one, which is, on backlog. Our backlog is $244 billion. That's up 40% year over year. I think it's up 22% quarter over quarter. You know, we have and we have a lot of deals that are in the pipeline. There's just a... As I mentioned earlier, there is a lot of demand for AWS right now, in the AI space and also in the core AWS space. Your second question was, internal and external use cases. I would... And, and, and then the impact around supply and demand. You know, the vast majority of our, the capital that we spend and the capacity that we have is consumed by external customers.
Speaker #1: I think it's up 22% quarter over quarter. We have a lot of deals that are in the pipeline. There's of demand for AWS right now.
to, you know, in live sports, you can if you watch Thursday Night Football, you can see, uh, you know, um, uh, defense of the alerts which predict which player is going to Blitz or, you know, pocket health. I mean, we in every 1 of our businesses. You see a very broad use of AI to improve the customer experience and in many cases just to completely reinvent what was possible before. I mean, it's, it's pretty neat to to use something like lens where, you know, you you may see something you want to buy and you, you can just take a picture of it in the app and it finds the item on the detail page. And by 1 Click, its kind of magic. And, you know, externally, uh, I would say, you know, uh, it it's kind of what I said earlier earlier.
Speaker #1: In the AI space, and also in the core AWS, your second question was around internal and external use cases, and then the impact around supply and demand.
Um, you have, uh, AI Labs, you know. Um, consuming lots of lots of capacity, uh, both for training as well as for the inference, um, uh, and the research across what they're doing with their different applications and models.
Speaker #1: The vast majority of our capital that we spend and the capacity that we have is consumed by external customers. We have all Amazon has always been a very large AWS customer, a very helpful AWS customer because they're very demanding and they use the services very expansively and stretch the limits as we launch things.
Andy Jassy: Amazon has always been a very large AWS customer, a very helpful AWS customer, because they're very demanding and they use the services very expansively and stretch the limits as we launch things. So they've always been a very important big customer, but always a very small fraction of the total, and that's true today in, you know, in AI, as well as, you know, the overall AWS business. You know, internally, we have all sorts of ways that we are using AI.
Andy Jassy: Amazon has always been a very large AWS customer, a very helpful AWS customer, because they're very demanding and they use the services very expansively and stretch the limits as we launch things. So they've always been a very important big customer, but always a very small fraction of the total, and that's true today in, you know, in AI, as well as, you know, the overall AWS business. You know, internally, we have all sorts of ways that we are using AI.
Speaker #1: So they've always been a very important, big customer, but always a very small fraction of the total. And that's true today in AI as well as the overall AWS business.
You know, we're growing 24% year-over-year on a 142 billion annualized run rate business. So um we're growing and really an unprecedented rate. Um yet I think every provider would tell you including us that we could actually grow faster. If we had all the supply that we could take
Speaker #1: Internally, we have all sorts of ways that we are using AI. We have over a thousand AI applications that we've either deployed or are in the process of building, and they range from our shopping assistant in Rufus that we were just talking about to Alexa Plus, which is a really large-scale generative AI application.
and so we are we are being incredibly Scrappy around that if you look, you know, in the last 12 months,
Andy Jassy: We have over 1,000 AI applications that we've either deployed or in the process of building, and they range from our shopping assistant in Rufus, that we were just talking about, to Alexa Plus, which is a really large-scale generative AI application, to applications in our fulfillment network that allow us to have more accurate forecasting predictions, to how we do customer service and our customer service chatbot, to how we are making it much easier for brands to create advertisements and to optimize all their campaigns across the full funnel of advertising options we have. To, you know, in live sports, you can... If you watch Thursday Night Football, you can see, you know, defensive alerts, which predict which player is gonna blitz or, you know, pocket health.
Andy Jassy: We have over 1,000 AI applications that we've either deployed or in the process of building, and they range from our shopping assistant in Rufus, that we were just talking about, to Alexa Plus, which is a really large-scale generative AI application, to applications in our fulfillment network that allow us to have more accurate forecasting predictions, to how we do customer service and our customer service chatbot, to how we are making it much easier for brands to create advertisements and to optimize all their campaigns across the full funnel of advertising options we have. To, you know, in live sports, you can... If you watch Thursday Night Football, you can see, you know, defensive alerts, which predict which player is gonna blitz or, you know, pocket health.
Speaker #1: To applications in our fulfillment network that allow us to have more accurate forecasting predictions, to how we do customer service in our customer service chatbot.
Speaker #1: To how we are making it much easier for brands to create advertisements and to optimize all of their campaigns across the full funnel of advertising options we have.
We added 3.99 gigawatts of of power, um, just for perspective. Um, that's uh twice. What we had in 2022 and we were an eighty billion dollar annual run rate business. Um, we expect to double It Again by the end of 27, we added 1.2 gigawatts of uh of power and um, Q4 just a quarter of a quarter. So it's so we, you know, we are our team is being aggressive and Scrappy and inventive and adding capacity as fast as we can. Um, I, you know, we'll add a lot more in 26 and 27 and in 28 for that matter and um uh um and we're very optimistic we can continue to grow in in the ballpark of what we have.
Speaker #1: To in live sports, if you watch Thursday Night Football, you can see defensive alerts, which predict which player is going to blitz or pocket health.
Thanks for joining us on the call today, and for your questions, a replay will be available on our investor relations website for at least 3 months. We appreciate your interest in Amazon and we look forward to talking with you again, next quarter.
Speaker #1: I mean, in every one of our businesses, you see a very broad use of AI to improve the customer experience. And in many cases, just to completely reinvent what was possible—to use something like Lens, where you may see something you want to buy, and you can just take a picture of it in the app, and it finds the item on the detail page so you can buy in one click.
Andy Jassy: I mean, in every one of our businesses, you see a very broad use of AI to improve the customer experience, and in many cases, just to completely reinvent what was possible before. I mean, it's pretty neat to use something like Lens, where, you know, you may see something you wanna buy, you can just take a picture of it in the app, and it finds the item on the detail page. You can buy it in one click. It's kind of magic. You know, externally, I would say, you know, it's kind of what I said earlier. You have AI labs, you know, consuming lots and lots of capacity, both for training as well as for the inference, and the research across what they're doing with their different applications and models.
Andy Jassy: I mean, in every one of our businesses, you see a very broad use of AI to improve the customer experience, and in many cases, just to completely reinvent what was possible before. I mean, it's pretty neat to use something like Lens, where, you know, you may see something you wanna buy, you can just take a picture of it in the app, and it finds the item on the detail page. You can buy it in one click. It's kind of magic. You know, externally, I would say, you know, it's kind of what I said earlier. You have AI labs, you know, consuming lots and lots of capacity, both for training as well as for the inference, and the research across what they're doing with their different applications and models.
Speaker #1: It's kind of magic. And externally, I would say it's kind of what I said earlier. You have AI labs consuming lots and lots of capacity.
Speaker #1: Both for training as well as for inference and the research across what they're doing with their different applications and models. We see enterprises, all sorts of workloads.
Andy Jassy: We see enterprises, all sorts of workloads, you know, customer service automation, business process automation, fraud, completely reinventing their applications, you know, agentic coding applications, legal applications. Suno is a really cool example of an AWS customer that's kind of reinvented how you can write music and build music, so really across the board. And, you know, and I just think on the supply and demand, what I would tell you is, you know, we're growing 24% year-over-year on a $142 billion annualized run rate business. So, we're growing at really an unprecedented rate. Yet I think every provider would tell you, including us, that we could actually grow faster if we had all the supply that we could take. And so we are, we are being incredibly scrappy around that.
Andy Jassy: We see enterprises, all sorts of workloads, you know, customer service automation, business process automation, fraud, completely reinventing their applications, you know, agentic coding applications, legal applications. Suno is a really cool example of an AWS customer that's kind of reinvented how you can write music and build music, so really across the board. And, you know, and I just think on the supply and demand, what I would tell you is, you know, we're growing 24% year-over-year on a $142 billion annualized run rate business. So, we're growing at really an unprecedented rate. Yet I think every provider would tell you, including us, that we could actually grow faster if we had all the supply that we could take. And so we are, we are being incredibly scrappy around that.
Speaker #1: Customer service automation, business process automation, fraud, completely reinventing their applications. Agentic coding applications. Legal applications. Who knows a really cool example with an AWS customer that's kind of reinvented how you can write music and build music.
Speaker #1: So really across the board, on the supply and demand, what I would tell you is we're growing 24% year over year, on a $142 billion annualized run rate business.
Speaker #1: So we're growing at really an unprecedented rate. Yet I think every provider would tell you, including us, that we could actually grow faster if we had all the supply that we could take.
Speaker #1: And so we are being incredibly scrappy around that. If you look in the last 12 months, we added 3.9 gigawatts of power. Just for perspective, that's twice what we had in 2022, when we were an $80 billion annual run rate business.
Andy Jassy: If you look, you know, in the last 12 months, we added 3.99 gigawatts of power. Just for perspective, that's twice what we had in 2022, when we were an $80 billion annual run rate business. We expect to double it again by the end of 2027. We added 1.2 gigawatts of power in Q4, just quarter over quarter. So we, you know, we are our team is being aggressive and scrappy and inventive in adding capacity as fast as we can. I, you know, we'll add a lot more in 2026 and 2027 and in 2028, for that matter. And we're very optimistic we can continue to grow in the ballpark of what we have.
Andy Jassy: If you look, you know, in the last 12 months, we added 3.99 gigawatts of power. Just for perspective, that's twice what we had in 2022, when we were an $80 billion annual run rate business. We expect to double it again by the end of 2027. We added 1.2 gigawatts of power in Q4, just quarter over quarter. So we, you know, we are our team is being aggressive and scrappy and inventive in adding capacity as fast as we can. I, you know, we'll add a lot more in 2026 and 2027 and in 2028, for that matter. And we're very optimistic we can continue to grow in the ballpark of what we have.
Speaker #1: We expect to double it again by the end of 2027. We added 1.2 gigawatts of power in Q4, just quarter over quarter. So it's we are our team is being aggressive and scrappy and inventive and adding capacity as fast as we can.
Speaker #1: We'll add a lot more in 2026 and 2027, and in 2028 for that matter. And we're very optimistic we can continue to grow in the ballpark of what we have.
Speaker #3: Thanks for joining us on the call today and for your questions. A replay will be available on our Investor Relations website for at least three months.
Dave Fildes: Thanks for joining us on the call today and for your questions. A replay will be available on our investor relations website for at least three months. We appreciate your interest in Amazon, and we look forward to talking with you again next quarter.
Dave Fildes: Thanks for joining us on the call today and for your questions. A replay will be available on our investor relations website for at least three months. We appreciate your interest in Amazon, and we look forward to talking with you again next quarter.