- $4 billion was all Amazon needed to unseat Walmart from pole position
- The two companies generated more than $700 billion each in annual revenue.
- Amazon now aiming for much bigger growth than Walmart
Amazon has officially overtaken Walmart as America’s largest company after a years-long battle, with the e-commerce giant raking in $717 billion in revenue by 2025, compared to Walmart’s $713 billion.
Although the difference is relatively small, it marks the end of Walmart’s 13 years at the top.
While the writing may have been left on the wall after Amazon surpassed Walmart in quarterly sales in 2025, although the majority of Walmart’s revenue comes from traditional sales channels, Amazon needed a much more diverse revenue stream to rise to the top position.
Walmart is no longer the largest company by revenue
In addition to physical and online stores, Amazon’s revenue also came from third-party seller services such as fees, fulfillment and advertising, and its AWS cloud computing division.
Three of Amazon’s biggest successes came from a 10% increase in North American segment sales, a 13% increase in international segment sales, and a 20% increase in AWS segment sales. AWS revenue now accounts for almost a fifth (18%) of Amazon’s total revenue.
On the other hand, almost all (90%) of Walmart’s sales still come from stores and its website.
In terms of similarities, both companies have implemented their own AI shopping assistants and agents, and Walmart noted that customers using AI spend about 35% more per order.
With the revenue gap fairly tight at the moment, Walmart’s revenue could increase and the American retail giant could reach the top position again, or Amazon’s growth could continue as the US economy enters a new era.
For now, Walmart is targeting 3.5% to 4.5% year-over-year growth in net sales next quarter, while Amazon is targeting 11% to 15% growth.
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