Amazon Overtakes Walmart as World's Largest Retailer by Revenue
In a historic shift for global commerce, Amazon has officially surpassed Walmart in annual revenue for the first time. This milestone marks the end of Walmart's decades-long reign as the world's largest company by top-line sales, signaling the definitive triumph of the digital-first ecosystem model.
Mentioned
Key Intelligence
Key Facts
- 1Amazon has officially surpassed Walmart in total annual revenue for the first time in history.
- 2The milestone marks a definitive shift in global retail leadership from brick-and-mortar to digital-first ecosystems.
- 3Walmart's advertising business grew 46% in 2025, reaching $6.4 billion as it attempts to mimic Amazon's high-margin model.
- 4Amazon continues to expand its logistics-as-a-service, recently adding major brands like Bath & Body Works to its network.
- 5Walmart is undergoing a leadership transition with John Furner succeeding Doug McMillon as CEO.
- 6AI-driven features at Walmart have reportedly increased customer basket sizes by 35%.
| Metric | ||
|---|---|---|
| Primary Growth Engine | AWS & Marketplace Services | Grocery & Ad-Tech |
| Ad Business Growth (2025) | ~20-25% (Est) | 46% |
| Logistics Strategy | Logistics-as-a-Service (FBA) | Store-as-a-Hub |
| New Tech Focus | Satellite Internet (Kuiper) | Stablecoins & AI Baskets |
Who's Affected
Analysis
The global retail landscape reached a definitive turning point this week as Amazon eclipsed Walmart in total annual revenue, a feat once considered nearly impossible given Walmart’s massive physical footprint and dominance in the grocery sector. For decades, Walmart stood as the undisputed titan of the Fortune 500, leveraging its supply chain efficiency to maintain a lead over all global competitors. However, the convergence of Amazon’s high-growth cloud computing (AWS), its rapidly expanding third-party marketplace, and a burgeoning advertising juggernaut has finally tipped the scales in favor of the Seattle-based tech giant.
This transition is more than a mere change in rankings; it represents a fundamental shift in how value is captured in the modern economy. While Walmart’s revenue is still heavily tied to the low-margin volume of physical goods and groceries, Amazon’s revenue mix is increasingly diversified into high-margin services. The company has successfully transitioned from being a 'store' to being the 'infrastructure' for commerce. By opening its logistics network to external brands—most recently evidenced by Bath & Body Works joining the Amazon fulfillment ecosystem—Amazon has turned its greatest cost center into a revenue-generating service that competitors struggle to replicate.
This includes a significant push into retail media, with Walmart’s advertising business growing 46% in 2025 to reach $6.4 billion.
Walmart, for its part, has not remained static. Under the outgoing leadership of Doug McMillon and incoming CEO John Furner, the Bentonville retailer has aggressively pursued an 'Amazon-lite' strategy. This includes a significant push into retail media, with Walmart’s advertising business growing 46% in 2025 to reach $6.4 billion. Furthermore, Walmart is experimenting with frontier technologies such as stablecoins for payments and AI-driven shopping assistants, which the company claims have increased basket sizes by 35% for early adopters. Despite these successes, Walmart’s growth in digital services has not been fast enough to outpace the compounding scale of Amazon’s flywheel.
For investors, the implications are profound. Amazon’s ability to surpass Walmart’s revenue while maintaining significantly higher growth rates in its core segments suggests that the 'ceiling' for the digital economy is much higher than previously estimated. However, the battle is now shifting from total revenue to 'total commerce.' Walmart still maintains a logistical advantage in the 'last mile' of grocery delivery through its 4,700+ U.S. stores, a sector Amazon has found difficult to crack despite its acquisition of Whole Foods. The next phase of competition will likely see Amazon attempting to further densify its physical presence while Walmart tries to decouple its revenue from physical foot traffic.
Looking ahead, the market will be watching how Amazon manages its increasing regulatory scrutiny and internal cost-cutting measures, such as the recently reported job reductions in New York City. Simultaneously, Walmart’s leadership transition to John Furner will be a critical period as the company seeks to redefine itself as a technology-led retailer. The revenue flip is a symbolic end to the 'big box' era and the official commencement of the ecosystem era, where the winner is not the one who sells the most goods, but the one who controls the most touchpoints in a consumer's daily life.