In a significant shift within the retail landscape, Amazon has surpassed Walmart to become the world’s largest company by sales, ending Walmart’s 13-year reign at the top. Amazon reported an impressive $717 billion in sales for 2025, compared to Walmart’s $713 billion, as revealed by the retailer on Thursday.
The two giants have long been competitors in consumer retail, but Amazon’s notable growth in sectors such as cloud computing and advertising has propelled it ahead of Walmart. Jeff Bezos founded Amazon in 1994 as an online bookstore, and since then, the company has expanded its offerings dramatically. A substantial portion of its revenue—nearly $129 billion last year—came from its Amazon Web Services (AWS) division, which offers a comprehensive array of computing, storage, and artificial intelligence services to a global clientele. This division not only contributes significant revenue but also serves as a critical financial buffer, helping to mitigate losses incurred from its retail operations.
Amazon’s overall revenue is underpinned by a combination of direct sales, which accounted for $464 billion, along with significant contributions from advertising and subscription services such as Amazon Prime, which collectively surpassed $100 billion. In contrast, over 90% of Walmart’s total sales are derived from its extensive network of physical stores and online platforms.
Despite Amazon’s ascent, Walmart has not stood still. The giant retailer has made substantial adjustments and is reportedly in its strongest position in years. Recently, Walmart’s stock valuation crossed the $1 trillion mark, making it the first traditional retailer to achieve such a milestone. Additionally, the company recently relocated its stock listing to the Nasdaq, a strategic move aimed at positioning itself alongside tech firms in the eyes of investors.
Walmart’s business within the U.S. is thriving, particularly among middle-class and upper-income demographics looking to save money amidst economic pressures. The retailer has continued to capture market share from its competitors, including Target. Under the leadership of new CEO John Furner, Walmart announced a 4.6% growth in U.S. sales for the last quarter, signaling resilience in its market strategy.
“The pace of change in retail is accelerating,” Furner stated, highlighting the company’s proactive approach to adapting in a rapidly evolving market. “Our financial results show that we’re not only embracing this change, we’re leading it.”
