Jeff Bezos’ online e-retail behemoth Amazon has just overtaken retail giant Walmart in sales. For the first time, Walmart on Thursday reported lower annual sales than Amazon: Walmart’s revenue was $713.2 billion for the year ending in January, while Amazon, boosted by its lucrative cloud-computing business, made $716.9 billion in revenue for the year ending in December 2025.
Amazon’s rise reflects the strength of its diversified business model. While it began as an online bookstore in 1994, it has evolved into a technology-driven conglomerate spanning e-commerce, logistics, digital advertising, subscription services, and cloud computing.
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A major driver of its revenue growth has been Amazon Web Services (AWS), its highly profitable cloud-computing division, which provides infrastructure and data services to corporations, governments, and startups worldwide. In addition, Amazon’s third-party marketplace, Prime subscription program, and advertising platform have significantly expanded its revenue streams beyond traditional retail margins.
For about a decade, Walmart had reigned supreme thanks to its status as the world’s largest retailer with nearly 11,000 stores employing more than 2 million people.
Walmart, founded in 1962, has long dominated global retail through its vast network of physical stores, supply chain efficiency, and focus on low prices. For decades, it held the title of the world’s largest company by revenue. In recent years, Walmart has invested heavily in e-commerce and digital integration to compete more directly with Amazon, strengthening its online presence and fulfillment capabilities.
Amazon has struggled to develop a physical-store footprint despite its purchase of Whole Foods in 2017, but it’s the biggest online retailer, employing 1.6 million people.
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Amazon’s narrow lead represents not just a financial milestone but a broader transformation in how global commerce is structured — increasingly shaped by digital platforms, cloud infrastructure, and technology-driven ecosystems.
The shift in annual revenue leadership between Amazon and Walmart reflects more than a close financial race; it signals how the balance of power in global commerce continues to evolve. Retail dominance is no longer defined solely by physical footprint, store count, or traditional supply chain scale. Instead, it increasingly depends on technological integration, digital ecosystems, and the ability to generate revenue across multiple interconnected platforms.
Amazon’s ascent illustrates how data infrastructure, subscription-based services, and high-margin business segments can complement retail operations and reshape competitive dynamics. At the same time, Walmart’s enduring strength demonstrates that physical retail, operational efficiency, and price leadership remain deeply relevant in a hybrid shopping environment where consumers move seamlessly between online and in-store experiences.