Amazon Surpasses Walmart in Annual Revenue for the First Time

Amazon.com Inc. has officially surpassed Walmart Inc. in annual revenue for the first time, marking a significant milestone in the long-standing rivalry between the two retail giants. For the fiscal year ending January 31, 2025, Amazon reported revenues of $716.9 billion, while Walmart's revenue stood at $713.2 billion. This shift reflects a broader trend in consumer behavior, with increasing reliance on e-commerce and cloud computing services, areas where Amazon has established a strong foothold.

BloombergAmazon surpasses Walmart in annual revenue for the first timeBloombergCNBC TV18The HillWalmart annual revenue up almost 5%, net income up 12.6%

Amazon's revenue growth has been fueled by several factors, including its robust e-commerce operations and the expansion of its Amazon Web Services (AWS) division, which accounted for nearly 18% of its total sales. Additionally, Amazon's advertising revenue reached approximately $68 billion, significantly outpacing Walmart's ad revenue of $6.4 billion. The company's third-party seller services, which include commissions and fulfillment fees, contributed around 24% to its total sales.

Amazon surpasses Walmart in annual revenue for the first timeBloombergCNBC TV18BloombergThe HillWalmart annual revenue up almost 5%, net income up 12.6%

In contrast, Walmart continues to rely heavily on its physical stores, which account for about 90% of its sales. Despite this, Walmart has seen growth in its e-commerce segment, with a reported 24% increase in global e-commerce sales. The retailer is also investing in artificial intelligence, partnering with Google and OpenAI to enhance its product search and purchasing tools.

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While Amazon's achievement is notable, some analysts caution against viewing it as a definitive victory in the retail sector. Kirthi Kalyanam, executive director of the Retail Management Institute, remarked, “Amazon didn’t beat Walmart in the retail game. It just beat them in revenue by launching a new business Walmart doesn’t operate in.” This perspective highlights the importance of cloud computing in Amazon's revenue, as its sales without AWS would fall significantly short of Walmart's overall figures.

BloombergAmazon surpasses Walmart in annual revenue for the first timeBloombergThe HillCNBC TV18Walmart annual revenue up almost 5%, net income up 12.6%

Walmart's CEO, John Furner, acknowledged the competitive landscape, stating, “The pace of change in retail is accelerating. It’s exciting.” He emphasized that Walmart is committed to adapting to these changes, focusing on enhancing customer experience through digital transactions and e-commerce growth. Meanwhile, Amazon's CEO, Andy Jassy, announced plans for substantial capital expenditures, projecting up to $200 billion in 2026, primarily for AI infrastructure.

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As both companies continue to evolve, the competition is expected to intensify. Amazon is expanding its physical retail presence, planning to open over 100 Whole Foods locations and testing new delivery options. Conversely, Walmart is refining its store operations to serve as mini e-commerce distribution hubs, aiming to capture more online market share.

Bloomberg

• “There’s a question of where Walmart’s next level of innovation comes from,” — Sky Canaves, Principal Analyst at eMarketer

Amazon surpasses Walmart in annual revenue for the first time

• “Dividends continue to be a part of our diversified capital returns approach,” — John David Rainey, Walmart Executive Vice President

The Hill

This pivotal moment in retail history underscores the shifting dynamics between traditional brick-and-mortar stores and the burgeoning e-commerce landscape, setting the stage for ongoing competition and innovation.

Walmart annual revenue up almost 5%, net income up 12.6%