04:51 PM EDT, 10/30/2025 (MT Newswires) -- Amazon.com ( AMZN ) late Thursday reported third-quarter results above Wall Street's estimates amid stronger-than-expected revenue growth in its cloud computing division.

The e-commerce giant's per-share earnings jumped to $1.95 from $1.43 a year earlier, topping the FactSet-polled GAAP consensus of $1.57. Sales increased 13% year-over-year to $180.17 billion, higher than the Street's $177.91 billion view.

Shares were up 9.8% in after-hours trading.

Revenue at the Amazon Web Services cloud computing unit rose 20% annually to $33.01 billion, compared with market expectations of $32.46 billion.

"AWS is growing at a pace we haven't seen since 2022," Amazon ( AMZN ) Chief Executive Andy Jassy said in a statement.

Still, the 20% rate still lagged the broader cloud industry that is estimated to have grown 28% year over year in the third quarter, BofA Securities said in a note last week.

Microsoft ( MSFT ) said late Wednesday that cloud computing unit Azure's revenue climbed 40% year-over-year in its most recent quarter. Analysts have expressed concerns about cloud share losses at AWS amid rising competition in the industry.

AWS has announced fewer big cloud infrastructure deals than others including Oracle (ORCL) and Alphabet's (GOOG, GOOGL) Google ( GOOG ), though that might be due to capacity constraints or margin preservation, BofA said.

"Big picture, we think AWS (like Google ( GOOG ) last year) is in a bit of a catch-up phase for AI capacity (and) model innovation vs competitors," according to the BofA note.

RBC Capital Markets analyst Brad Erickson said he sees a "particularly challenging" setup for investors as the gap between Amazon ( AMZN ) and its competitors possibly widens.

Amazon's ( AMZN ) third-quarter results were weighed down by a $2.5 billion charge related to a settlement with the Federal Trade Commission and estimated severance costs of $1.8 billion tied to planned layoffs, the company said late Thursday.

Earlier this week, Amazon ( AMZN ) disclosed plans to terminate 14,000 corporate employees as part of the e-commerce giant's ongoing efforts to streamline the organization and increase efficiency.

Advertising services revenue advanced 24% in the third quarter, while online store sales increased 10%, Amazon ( AMZN ) said.

The company expects fourth-quarter revenue of $206 billion and $213 billion, reflecting annual growth of 10% to 13%. Analysts are looking for $208.41 billion.

The AWS service went down on Oct. 20, impacting businesses worldwide. Microsoft's ( MSFT ) products and services, including Azure, were disrupted on Wednesday because of what it described as "an inadvertent configuration change."