Amazon smashed analysts' expectations, bringing in better-than-anticipated first quarter earnings on Thursday.
Revenue was up 28% over last year, driven primarily by the strength of Amazon Web Services (AWS), the company’s cloud business.
AWS is currently the most profitable business at Amazon, according to Yahoo Finance. In total, AWS was responsible for 56% of the entire company’s profit in Q1.
AWS revenue was $2.57 billion, beating estimates of $2.53 billion. That’s up 64% from the first quarter of 2015. Its operating income is up 170%.
Analyst Jan Dawson noted on Twitter that AWS generated more operating income in the quarter than Amazon's entire U.S. e-commerce business.
This is Amazon’s fourth profitable quarter in a row. The company’s stock surged more than 11% in after-hours trading following the report.
Though Microsoft and Google have been stepping up efforts to catch AWS, the company has a firm grasp on its lead. Last year, Amazon held 31% of the cloud market. Microsoft, IBM and Google each held 9%, 7% and 4%, respectively.