Amazon AWS Revenue Growth Reaches 37 Percent, Fastest in 18 Quarters
AWS's acceleration to 37 percent growth, combined with Amazon's current valuation sitting roughly 21 percent below its five-year average EV/EBITDA multiple, creates a measurable gap between...
Amazon Web Services posted year-over-year revenue growth of 37 percent in its most recent reported quarter, the fastest rate recorded in 18 quarters, according to analysis published October 19, 2026 by Seeking Alpha. That figure marks a significant acceleration from the 17 percent growth rate AWS reported approximately one year prior, representing a doubling of the cloud division's expansion pace over that period.
AWS is Amazon's highest-margin business segment. In Amazon's most recent annual report filed with the Securities and Exchange Commission, AWS accounted for the majority of the company's total operating income despite generating a smaller share of total net sales than the North America retail segment. The combination of accelerating revenue growth and high operating margins makes AWS the primary driver of Amazon's consolidated profitability.
Amazon's overall enterprise valuation currently stands at approximately 16.7 times trailing earnings before interest, taxes, depreciation, and amortization, measured on an enterprise value basis, according to the Seeking Alpha analysis. That multiple sits roughly 21 percent below the company's own five-year historical average EV/EBITDA multiple, based on figures cited in the same report.
The gap between the company's improving operating metrics and its below-average valuation multiple is the central question facing investors in Amazon shares, ticker AMZN, which trade on the Nasdaq exchange. A valuation discount relative to a company's own historical average can reflect either a market judgment that prior valuations were excessive or a lag in repricing that eventually corrects as earnings data accumulates. Which explanation applies in Amazon's case is not established by available data alone.
What would clarify the picture is Amazon's next quarterly earnings release, which will provide updated AWS revenue figures, operating margin data for each segment, and management guidance on capital expenditure commitments to cloud infrastructure. Amazon has not yet announced the specific date of its next earnings call as of the publication of this article.
The broader context for AWS's acceleration is the rapid expansion of enterprise demand for artificial intelligence computing infrastructure. Major cloud providers including Amazon, Microsoft, and Alphabet have all reported increased customer spending on AI-related workloads in 2026, driving higher utilization of data center capacity. Amazon has disclosed multi-billion-dollar capital expenditure plans for data center buildout in its SEC filings, though the precise quarterly allocation of those expenditures varies.
AWS competes directly with Microsoft Azure and Google Cloud. Microsoft reported Azure revenue growth of 33 percent in its most recent fiscal quarter, according to Microsoft's earnings release. Alphabet reported Google Cloud revenue growth of 28 percent in its most recent quarter, according to Alphabet's earnings release. AWS's 37 percent growth rate, if confirmed in Amazon's next filing, would place it above both primary competitors on that metric for the comparable period.
The EV/EBITDA metric used in the Seeking Alpha analysis measures a company's total enterprise value, which includes market capitalization plus net debt, relative to operating cash earnings before non-cash charges. It is a standard valuation tool used by equity analysts to compare companies across different capital structures. A lower multiple relative to historical averages can indicate either undervaluation or a structural change in how the market prices the business.
Amazon's total market capitalization as of October 19, 2026 was not independently confirmed in the source material reviewed for this article. Investors seeking the current figure can reference real-time exchange data on Nasdaq or Amazon's investor relations page, which links directly to SEC filings including the most recent 10-K and 10-Q reports.
No changes to Amazon's share buyback program, dividend policy, or executive guidance were announced in the period covered by the source material. The company does not currently pay a common stock dividend, according to its most recent SEC filings. Any forward guidance on AWS growth rates would be disclosed at the next scheduled earnings call.