In the first quarter, Amazon's cloud business expanded more slowly than anticipated, missing revenue for the third consecutive quarter.
While experts surveyed by StreetAccount had predicted $29.42 billion in revenue, Amazon Web Services' revenue climbed 17 percent to $29.27 billion. From 18.9 percent in the fourth quarter, the increase slowed.
AWS is the leading provider of cloud infrastructure globally, with over 19 percent of its parent company's total income coming from this business.
Microsoft, its main rival, revealed first-quarter Azure cloud growth and business forecast that surpassed expectations.
Last week, Google, the third-ranked supplier, performed slightly below expectations in terms of cloud revenue.
Even while there are indications of a more difficult economy elsewhere, cloud computing is nevertheless growing steadily. President Donald Trump's announcement in early April of broad tariffs on US imports has caused automakers and retailers to start bracing for either weaker demand or higher costs.
Amazon reported first-quarter AWS operating income of $11.55 billion, which was more than the StreetAccount average of $10.52 billion.
At 39.5 percent, the segment's operating margin was the most it has been since at least 2014.
AWS said during the quarter that it was creating an agentic artificial intelligence team and launching a video game streaming service.
The quarter's capital infrastructures totaled $24.3 billion, a 74 percent increase over the previous year.
Some of the approximately $105 billion in 2025 capital investment that management requested in February will be used to build data centers with chips that can run and train artificial intelligence models from Anthropic and other cloud customers.
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In an April letter to shareholders, Andy Jassy, the CEO of Amazon and a former head of AWS, stated that Amazon's own processors, which serve as a substitute for Nvidia graphics processing units, will help lower the cost of AI for consumers over time.