Amazon surpasses Walmart in revenue for the first time, marking a historic shift. The e-commerce giant reported $187.8 billion in Q4 earnings, surpassing Walmart’s $180.5 billion for the same period. Walmart has consistently held the top spot in revenue since 2012.
 Amazon’s Growth and Walmart’s Position
While Walmart continues to lead in annual sales, Amazon is closing in fast. Analysts project Walmart’s revenue for the upcoming fiscal year to reach $708.7 billion. Meanwhile, Amazon is expected to generate $700.8 billion in full-year revenue for 2025, according to FactSet.
Amazon’s retail business remains its primary source of income. However, its revenue is also driven by cloud computing, advertising, and third-party seller services. These additional business segments are fueling Amazon’s rapid expansion and solidifying its dominance in the digital marketplace.
Key Revenue Drivers for Amazon
Amazon’s revenue surge is attributed to its diverse business model. Third-party seller services, which include commissions, fulfillment fees, and advertising revenue, contributed 24.5% to the company’s total sales last year. Additionally, Amazon Web Services (AWS), its cloud computing division, accounted for nearly 17% of overall revenue.
AWS remains a major profit driver, providing businesses worldwide with cloud storage, artificial intelligence, and computing power. The company’s advertising segment has also grown significantly, leveraging its vast e-commerce platform to attract marketers.
Walmart’s Response to Amazon’s Growth
To maintain its competitive edge, Walmart has adopted strategies similar to Amazon’s. The retail giant now operates a third-party marketplace, offering fulfillment services for sellers. However, these operations remain significantly smaller compared to Amazon’s vast infrastructure.
Walmart has also launched an advertising business, leveraging its in-store and online presence to attract brands. Additionally, the company introduced Walmart+, a loyalty program designed to compete with Amazon Prime. These efforts aim to drive customer engagement and increase revenue in an increasingly digital retail landscape.
The Future of Retail Competition
Amazon’s continued growth challenges Walmart as both companies compete for dominance in the global retail market. While Walmart holds an advantage in physical store sales, Amazon’s technological advancements and diversified revenue streams position it as a formidable competitor.
As consumer preferences shift towards online shopping and digital services, both retail giants must innovate continuously. Whether Walmart can reclaim its position or Amazon extends its lead remains a key question for the future of retail.
