Amazon has reported robust first-quarter earnings, driven by the accelerated growth of its cloud computing service, Amazon Web Services (AWS), bolstered by advancements in artificial intelligence (AI). Despite a broad selloff on Wall Street, the e-commerce giant’s shares rose by more than 1% in after-hours trading, reflecting investor confidence in its performance. The company exceeded market expectations, reporting earnings per share of 98 pence on revenue of $143.3 billion, surpassing estimates of 83 pence and $142.5 billion, respectively.

Notably, AWS, Amazon’s key revenue driver, recorded sales revenue of $25 billion, marking a 17% year-on-year increase and significantly surpassing estimates. AWS stands out as the most profitable division, contributing 62% of the total operating profit and demonstrating strong momentum with an operating income of $9.4 billion, nearly double the figure from the same quarter last year. Amazon provided a positive outlook for the second quarter, expecting operating income to range from $10 billion to $14 billion, reflecting significant year-on-year growth. The company attributes AWS’s growth to factors such as increased AI adoption, enhanced business spending on cloud computing, and cost-cutting measures.