Amazon’s cloud unit records highest profit margin in at least a decade

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’s cloud unit records highest profit margin in at least a decade

Matt Garman, CEO of

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Web Services, speaks during The Wall Street Journal’s Tech Live conference in Laguna Beach, California, on Oct. 21, 2024.

Frederic J. Brown | AFP | Getty Images

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said revenue in its cloud unit increased 19% in third quarter, just missing analyst estimates.

Revenue at

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Web Services totaled $27.45 billion, according to a

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on Thursday, while Wall Street was expecting $27.52 billion, based on StreetAccount estimates. Year-over-year growth has accelerated for five consecutive quarters.

AWS leads the cloud infrastructure market over

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and

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and is an important source of profit for

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.

On Tuesday Alphabet said revenue from

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Cloud, which includes cloud applications as well as infrastructure, totaled $11.35 billion, up 35%.

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said Wednesday that revenue from Azure and other cloud services grew 33%.

AWS recorded $10.45 billion in operating income, representing 60% of its parent’s profit. Analysts expected $9.15 billion.

The unit’s operating margin came in at 38%, the widest for AWS since at least 2014.

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Cloud reported an operating margin of 17%.

During the quarter, Oracle said it will bring database services to AWS.

“If this is successful, we would love to find more pieces of their application stack that could run well in AWS and help customers do that,” AWS CEO Matt Garman told CNBC in a September interview.

Also in the quarter, AWS

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to discontinue some services, including code-repository tool CodeCommit. Garman told

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that AWS “can’t invest in everything.”

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will hold a conference call for analysts starting at 5 p.m. ET.

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