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Wed, 23 Sept, 2026Updated 05:12 pm IST
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Amazon Surpasses Microsoft

AWS revenue to hit $180 billion by 2026, driving 40% annual growth

Amazon Surpasses Microsoft
Photo: Meet Jayesh Choudhari / Pexels

Amazon's e-commerce business is expected to exceed $750 billion in revenue this year, surpassing Microsoft's total revenue. This milestone highlights the massive scale of Amazon's online retail operations, which are growing at about 18% annually.

The company's cloud computing arm, Amazon Web Services (AWS), is also experiencing rapid growth, with top-line growth closer to 40%. AWS revenue is projected to reach $180 billion by 2026, representing an estimated $2 trillion of Amazon's $3 trillion market cap.

In comparison, Microsoft's Azure revenue crossed $100 billion in full-year revenue for the first time, with AWS posting $42.23 billion in quarterly revenue at 36.7% year-over-year growth. Google Cloud revenue was $24.77 billion, accelerating to 82% growth.

Amazon's market cap is $3 trillion, with AWS estimated to be worth $2 trillion. The company's e-commerce business is larger than Microsoft's total revenue, and its cloud computing arm is driving significant growth.

## Why it matters The scale of Amazon's e-commerce business and the growth of its cloud computing arm have significant implications for the tech industry. As the largest company in the Fortune 500, Amazon's dominance in online retail and cloud computing is likely to continue, with its market cap and revenue projections reflecting its position as a leader in the industry.

The growth of AWS is also notable, as it represents a significant portion of Amazon's market value. The estimated $2 trillion value of AWS highlights the importance of cloud computing to Amazon's overall business, and the company's ability to drive growth through its cloud operations.

## What happens next As Amazon continues to grow its e-commerce and cloud computing businesses, it is likely to face increased competition from other tech giants, including Microsoft and Google. The company's ability to maintain its market lead and drive growth through its cloud operations will be critical to its success in the coming years.

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