Amazon Officially Overtakes Walmart as World's Largest Retailer by Revenue in 2025
Published Date: 19th Feb, 2026
February 19, 2026
Amazon has surpassed Walmart to become the world's largest retailer by annual revenue for the first time, according to financial data released this week. For the calendar year 2025, Amazon reported total net sales of $678.4 billion, narrowly eclipsing Walmart's $657.1 billion for its fiscal year ending January 31, 2026. The milestone ends Walmart's 11-year run at the top and underscores the accelerating shift from traditional brick-and-mortar retail to e-commerce, cloud computing, and advertising-driven business models.
Amazon's retail segment (excluding AWS) grew 14% year-over-year to $412 billion, while its advertising business jumped 28% to $58.3 billion and AWS contributed $112 billion. Walmart, the largest U.S. grocer and general merchandise retailer, saw revenue rise 5.8% but was constrained by slower growth in non-essential categories and intense online competition.
Amazon CEO Andy Jassy addressed the achievement in an internal memo: “This isn't about topping Walmart — it's proof that relentless customer focus, invention at scale, and long-term thinking still win in retail. We're only getting started.”
Walmart CEO Doug McMillon responded: “We congratulate Amazon on this milestone. Our focus remains on everyday low prices, unmatched convenience, and serving customers better through stores, digital, and omnichannel experiences.”
Key Drivers of Amazon's Ascent
- Prime membership surpassing 240 million globally, fueling faster delivery and higher customer lifetime value
- Advertising revenue now rivaling major media companies in profitability
- AWS maintaining 31% share of the global cloud market with high-margin recurring income
- Rapid growth in private-label brands, third-party seller ecosystem, and logistics network
- Heavy investment in robotics, AI supply-chain optimization, and same-day/next-day delivery infrastructure
Walmart countered with Walmart+, digital advertising expansion, and supply-chain upgrades, but its e-commerce growth (21%) lagged Amazon's retail segment and its physical-store reliance limited upside in a digital-first environment.
Industry and Market Impact
The reversal highlights the ongoing transformation of retail power from physical footprints to digital ecosystems. Amazon now controls roughly 38% of U.S. e-commerce while Walmart remains dominant in groceries and physical general merchandise.
Wall Street responded favorably: Amazon shares rose 3.2% in after-hours trading, while Walmart dipped 1.1%. Analysts at Morgan Stanley and Goldman Sachs raised Amazon price targets, citing diversified high-margin revenue streams and continued margin expansion potential.
The achievement also cements Amazon's evolution from online bookstore to global retail, cloud, advertising, and logistics conglomerate. Walmart, despite the revenue title change, is expected to retain its position as the largest U.S. retailer by physical store count and grocery market share for the foreseeable future.
Amazon's ascension to the top retail revenue spot signals that scale, digital distribution, private-market capabilities, and recurring high-margin businesses increasingly define success in modern retail. For now, the crown belongs to Amazon — a position many expect it to hold for years to come as e-commerce, advertising, and cloud growth continue to outpace traditional retail models.
Date: 19th Feb, 2026
