According to the most recent financial disclosures for 2025–2026, Amazon outperformed Walmart in terms of yearly revenue, breaking Walmart’s decades-long supremacy as the largest retailer in the world by worldwide sales. Topics like “how did Amazon survive the dot-com bubble,” “what year did Amazon surpass Walmart?” and “how Amazon’s diverse business model outpaced Walmart’s traditional retail strategy” have all gained attention again as a result of this event.
Revenue from Amazon: around $716.9 billion
Walmart made about $713.2 billion.
The crucial query, “When did Amazon surpass Walmart?” is addressed by this small differential, which is the first time Amazon has outperformed Walmart on an annual basis. The fiscal year 2025 (reported in early 2026) is the response.
E-commerce revenues are not the only source of Amazon’s growth. Its income has surpassed that of traditional retail due to its supremacy in cloud computing, advertising, marketplace services, and logistics.
How Amazon Developed a Revenue Generator Outside of Retail
Amazon’s multi-stream business strategy, which Walmart cannot match at scale, is one of the main factors contributing to its success.
1. AWS: The Giant of the Cloud
High-margin revenue from Amazon Web Services (Amazon Web Services) amounts to billions. One of the world’s most lucrative cloud computing platforms is AWS alone.
2. Powerhouse of Advertising
After Google and Meta, Amazon has quietly grown to become the third-largest digital advertising corporation in the world. Its advertising revenue exceeds $40 billion a year and is expanding quickly.
3. Marketplace for Third Parties
Marketplace vendors account for almost 60% of Amazon’s sales, and they pay:
referral costs
advertisement fees for fulfillment
Walmart is unable to completely match the compounding revenue benefit that this produces.
4. Dominance of Logistics Networks
Amazon’s logistics network, which includes trucks, airplanes, and warehouses, makes it possible for:
One-day delivery
same-day shipping
extensive inventory management
Amazon has the best infrastructure, even though Walmart has made improvements to its online fulfillment.
Why It Matters Today: How Amazon Survived the Dot-Com Bubble
Amazon survived the crash in the early 2000s by:
persistent reinvestment
diversification outside of books
long-term approach to innovation
powerful guidance from Jeff Bezos
entry into cloud computing (AWS), which subsequently turned out to be its main source of revenue.
Decades later, Amazon was able to overtake Walmart because to this survival tactic.
Why Walmart Lagged (for the time being)
1. Excessive reliance on physical stores
Walmart’s brick and mortar businesses account for more than 90% of its income, and they are expanding gradually.
2. Late Arrival in Online Sales
Walmart’s digital ecosystem is still smaller than Amazon’s, despite the fact that its online sales increased during COVID-19.
3. Restricted High-Margin Companies
Amazon’s global advertising business and AWS are not comparable to Walmart’s.
4. Slower International Growth in Markets Driven by Technology
Walmart does not actively compete with Amazon in the cloud, digital advertising, and AI ecosystems.
What This Change Means for AI-Driven Growth and International Retail
These days, Amazon and Walmart are both rushing toward growth driven by AI, concentrating on:
automated storage
Logistics powered by AI
Predictive retail
cloud-based retail intelligence
Chatbot-assisted client support
However, Amazon has a stronger foundation in the AI future thanks to its current technological lead, particularly through AWS.
