Amazon Web Services is having quite a moment. During its Q1 FY2026 earnings call, CEO Andy Jassy revealed that AWS is now growing at its fastest rate in 15 quarters, with cloud revenue hitting $37.6 billion, a 28 percent jump year-on-year. That number did not happen in a vacuum.
Global supply chain disruptions, particularly the skyrocketing cost of memory hardware, have been quietly doing AWS a favor. As component prices surge, traditional hardware suppliers are funneling their limited stock toward their biggest buyers. Cloud providers, unsurprisingly, sit at the top of that list. For companies still running on-premises infrastructure, that reality is forcing a long-overdue conversation about migrating to the cloud, and many are finally making the move.
Jassy acknowledged that AWS itself is not immune to capacity pressures, but the company had the foresight to act early. By working closely with strategic suppliers during the latter half of last year, the team secured meaningful supply ahead of the crunch. The result is a business that added $2 billion in cloud revenue over the previous quarter, its largest Q4-to-Q1 increase on record, bringing its annualized revenue run rate to $150 billion.
Beyond infrastructure, AWS is placing serious bets on its custom silicon. Jassy repeated his assertion that the company’s chip division, anchored by Trainium, Inferentia, and Graviton, would rank among the top three data center chip businesses globally if it stood alone. With over $225 billion in Trainium revenue commitments secured and fresh deals with Anthropic, OpenAI, Uber, and Meta in the pipeline, the custom chip story is becoming central to AWS’s identity rather than a side note.
And then there is Amazon Leo. With 250 satellites already in orbit and over 20 launches planned this year alone, Jassy envisions the low Earth orbit satellite business eventually becoming a multi-billion-dollar revenue stream, drawing comparisons to AWS’s own early, capital-heavy days.
For now, AWS enters the rest of 2026 with wind at its back, a growing chip empire, and a market that is increasingly willing to let go of old infrastructure habits.
