Amazon Web Services (AWS) remains the cloud leader despite growing competition from Alphabet’s Google Cloud and Microsoft Azure. In its latest earnings report, CEO Andy Jassy defended AWS’ position, highlighting its 24% year-over-year growth rate and $21.2 billion in revenue. Amazon plans to invest $200 billion in capital expenditures this year, mostly for AWS, showcasing its commitment to maintaining its lead.
However, some investors might be concerned about the potential impact of this investment on free cash flow. The company generated $139.5 billion in operating cash flow in 2025 but expects negative free cash flow in 2026 due to the large capex spending plan. Nonetheless, Amazon’s solid execution and strong revenue growth (14% increase) suggest that its strategy is paying off.
AWS’ chips business has reached $10 billion in annual revenue run rate, growing triple digits. The company’s largest competitor, Microsoft Azure, grew by 36% in its most recent quarter, while Google Cloud reported a 39% growth rate. Despite this, AWS remains the clear leader in terms of revenue and profit.
Jassy’s comments emphasize that having high growth rates on a smaller scale is not comparable to AWS’ achievement, where it has 24% year-over-year growth on a $142 billion annualized run rate. The company continues to add more incremental revenue and capacity than its competitors, extending its leadership position.
Source: https://www.fool.com/investing/2026/02/07/think-aws-is-losing-to-azure-and-google-cloud-you