Amazon Surpasses Walmart as World's Largest Retailer by Revenue in 2025

February 19, 2026

Amazon has officially overtaken Walmart as the largest retailer in the world by annual revenue, according to financial filings and market data released this week. For the full calendar year 2025, Amazon reported total net sales of $678.4 billion, edging past Walmart's $657.1 billion, ending Walmart's 11-year reign at the top of the global retail rankings.

The milestone marks a pivotal shift in the retail industry, as e-commerce and cloud computing-driven growth propelled Amazon ahead of the traditional brick-and-mortar giant. Amazon's retail segment (excluding AWS) grew 14% year-over-year to $412 billion, while its advertising business surged 28% to $58.3 billion and AWS continued its strong expansion, contributing $112 billion in revenue.

Walmart, which has dominated the retail sector since surpassing ExxonMobil in 2014, saw total revenue increase 5.8% to $657.1 billion for its fiscal year ending January 31, 2026. The company cited strong grocery and e-commerce growth but faced pressure from inflation, slower consumer spending in non-essential categories, and intense competition in online sales.

Amazon CEO Andy Jassy addressed the milestone in a memo to employees: “This isn’t about beating Walmart — it’s about proving that customer obsession, invention, and long-term thinking still win in retail. We’re just getting started.”

Walmart CEO Doug McMillon responded in a statement: “We congratulate Amazon on this achievement. Our focus remains on delivering everyday low prices, convenience, and an omnichannel experience that serves customers better than anyone else.”

Key Factors Behind Amazon's Rise

• Explosive growth in Amazon Prime membership (now over 240 million globally) and same-day/next-day delivery capabilities
• Advertising revenue becoming a major profit driver, rivaling traditional media companies
• AWS maintaining 31% market share in cloud computing and generating high-margin recurring revenue
• Expansion of Amazon's private-label brands and third-party seller ecosystem
• Heavy investment in robotics, AI-driven supply chain optimization, and same-day delivery infrastructure

Walmart countered with aggressive expansion of Walmart+, digital advertising, and supply chain improvements, but its slower growth in e-commerce (up 21% vs. Amazon's 14% in retail) and reliance on physical stores limited its ability to close the gap.

Broader Retail Implications

The reversal highlights the ongoing shift from physical to digital-first retail. Amazon now accounts for roughly 38% of U.S. e-commerce sales, while Walmart remains the largest grocer and general merchandise retailer with over 10,500 stores worldwide.

Wall Street reacted positively to the news. Amazon shares rose 3.2% in after-hours trading, while Walmart shares dipped 1.1%. Analysts at Morgan Stanley and Goldman Sachs raised price targets on Amazon, citing its diversified revenue streams and long-term margin expansion potential.

The milestone also underscores Amazon's transformation from an online bookstore into a global retail, cloud, advertising, and logistics conglomerate. Walmart, meanwhile, continues to invest heavily in digital capabilities and is expected to remain the largest U.S. retailer by physical store presence and grocery market share for years to come.

For now, Amazon holds the crown as the world's largest retailer by revenue — a title many expect it to retain for the foreseeable future as e-commerce, advertising, and cloud computing continue to drive outsized growth.