Amazon revenue passes Walmart after earnings reports
For decades, Walmart held the crown as the world’s largest company by annual revenue. But in a historic shift, Amazon has officially taken the top spot.
This isn’t just a symbolic victory. It marks a turning point in global retail — and signals how artificial intelligence (AI), cloud computing, and digital ecosystems are reshaping the future of commerce.
Let’s break down what happened, why it matters, and how AI is fueling the next chapter of this rivalry.
Quick Answer (Featured Snippet Optimized)
Has Amazon surpassed Walmart in annual revenue?
Yes. Amazon reported $716.9 billion in annual revenue, surpassing Walmart’s $713.2 billion, marking the first time Amazon has overtaken Walmart as the highest-revenue company.
The Revenue Milestone: What Changed?
Amazon generated $716.9 billion, narrowly beating Walmart’s $713.2 billion in annual sales.
While the difference may seem small, the shift represents:
- The evolution from traditional retail dominance
- The rise of diversified tech-driven revenue streams
- The growing power of AI and cloud computing
Walmart’s revenue has more than doubled over the past two decades. This isn’t a story of Walmart failing — it’s a story of Amazon expanding beyond retail.
How Amazon Built a $716 Billion Empire
Amazon is no longer just an online store.
Here’s where its revenue truly comes from:
1 Amazon Web Services (AWS)
Cloud computing powerhouse
Accounts for roughly 18% of total revenue
2 Third-Party Seller Services
Commissions, fulfillment, ads, shipping support
Accounts for about 24% of total revenue
3 Advertising Business
A fast-growing, high-margin segment
4 Core E-Commerce
Still the backbone — but no longer the whole story
Amazon’s ability to diversify into cloud computing, AI infrastructure, and digital advertising is what pushed it ahead.
Walmart’s Strategy: Becoming a Tech-Enabled Retailer
Walmart isn’t standing still.
The company operates:
- Over 4,600 Walmart stores
- Around 600 Sam’s Club locations in the U.S.
Sam’s Club has played a major role in strengthening Walmart’s membership ecosystem.
Walmart’s U.S. digital sales grew 27% in the fourth quarter, marking 15 consecutive quarters of double-digit growth.
It’s increasingly borrowing from Amazon’s playbook:
- Expanding its third-party marketplace
- Growing digital advertising
- Investing heavily in AI
The AI Battle: Different Approaches, Same Goal
The real competition is no longer shelf space.
It’s artificial intelligence.
Walmart’s AI Approach: Partnerships
Walmart has partnered with:
- OpenAI (ChatGPT integration)
- Google (Gemini AI)
It also launched its own AI shopping assistant called Sparky, integrated into its mobile app.
According to company leadership:
- Customers using Sparky spend 35% more per order
- About 50% of app users have tried it
Walmart’s strategy is clear:
Let tech companies build the AI
Focus on retail execution
Amazon’s AI Strategy: Build In-House, Invest Big
Amazon is taking a more aggressive route.
Its AI shopping assistant Rufus has:
- Been used by over 300 million customers
- Driven nearly $12 billion in incremental annualized sales
Amazon CEO Andy Jassy believes AI agents will guide product discovery just like in-store associates.
Amazon has also:
- Invested $8 billion in Anthropic
- Announced up to $200 billion in AI-related capital expenditure
- Expanded AI across Alexa, AWS, and logistics
While investors have shown short-term concern over massive spending, Amazon is clearly betting that AI infrastructure will define the next decade.
Why This Matters for Consumers
AI is already changing how we shop:
- Personalized recommendations
- Conversational shopping assistants
- Faster search and checkout
- Automated fulfillment
The future could include:
- Fully agent-driven shopping
- Predictive ordering
- Hyper-personalized pricing
The retailer that masters AI-driven commerce may dominate the next era.
What This Means for Investors
The revenue crown may be symbolic — but it highlights a structural shift:
| Amazon | Walmart |
| Tech-first diversification | Retail-first optimization |
| Massive AI infrastructure spending | Strategic AI partnerships |
| Cloud + ads + marketplace dominance | Physical + digital hybrid model |
Both companies are strong.
But their approaches to AI could determine long-term valuation.
The Bigger Picture: Retail Is Now a Tech War
This milestone confirms one thing:
Retail giants are becoming AI companies.
Walmart is integrating AI to enhance retail efficiency.
Amazon is building AI infrastructure to power the internet.
Different philosophies.
Same battlefield.
And for consumers? It means smarter shopping experiences.
Conclusion
Amazon surpassing Walmart in annual revenue marks more than a financial milestone — it signals the transformation of global retail into an AI-driven industry.
The real competition now isn’t just about price or speed.
It’s about data, algorithms, and intelligent automation.
As AI reshapes commerce, the battle between Amazon and Walmart is only getting started.
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