A Historic Revenue Shift
Amazon has officially surpassed Walmart in annual revenue, marking the first time the retail giant has lost its position as the world’s largest company by sales.
For the fiscal year ending in January, Walmart reported revenue of $713.2 billion. Amazon, whose fiscal year ended in December, posted $716.9 billion in revenue, edging ahead in a symbolic milestone for global commerce.
For roughly a decade, Walmart held the top spot, supported by nearly 11,000 stores worldwide and a workforce exceeding 2 million employees. Amazon, by contrast, employs about 1.6 million people and remains primarily an online retailer, despite its 2017 acquisition of Whole Foods.
Cloud Business Drives Amazon’s Edge
The decisive factor behind Amazon’s ascent has been its expanding technology division. Amazon Web Services, the company’s cloud computing arm, remains the global leader in the sector. Recently, AWS reported its strongest growth in years as corporations increasingly rely on cloud infrastructure and data centers to scale artificial intelligence initiatives.
While both companies are investing in AI, their strategies differ. Walmart has introduced AI-powered shopping tools and continues to expand its retail technology capabilities. However, it does not compete in cloud computing, an area that has become a significant revenue engine for Amazon.
Intensifying Retail Competition
On the retail front, the two companies are increasingly competing for the same consumer dollars, particularly in the U.S., their largest shared market.
Amazon continues to push on pricing and logistics, positioning itself as a low-cost online leader. Meanwhile, Walmart reported that higher-income households have become one of its fastest-growing customer segments in recent years.
Walmart’s online sales rose 24% in its most recent quarter, aided by expanded fast-delivery options, including services that deliver orders within hours. The retailer is strengthening its omnichannel model, leveraging physical stores to support rapid fulfillment.
Market Valuations Reflect Divergence
Stock market performance underscores the divergence in scale and investor perception. Earlier this month, Walmart’s market capitalization surpassed $1 trillion. Amazon crossed the $2 trillion mark in 2024, reflecting strong investor confidence in its diversified revenue streams, particularly cloud computing.
Though Walmart remains the world’s largest brick-and-mortar retailer, Amazon’s technology-driven model has reshaped the competitive landscape and redefined what it means to be the biggest company by sales in the modern economy.
