Amazon has officially surpassed Walmart to become the world’s largest company by annual revenue, ending Walmart’s 13-year reign at the top of the Fortune 500 list. The shift reflects a changing retail landscape driven by digital innovation, cloud services, and artificial intelligence investments.
Walmart reported annual revenue of $713.2 billion for its fiscal year ending January 31, 2026. Amazon, in comparison, recorded $716.9 billion in revenue for its 2025 fiscal year, representing a 12% increase from the prior year. While the margin between the two is narrow, the milestone underscores the growing dominance of technology-led business models in global retail.
Amazon’s continued growth is driven by its diversification beyond e-commerce. Amazon Web Services (AWS) contributed 18% of total revenue but delivered 57% of operating profit. AWS generated $128.7 billion in 2025, marking a 24% growth rate in the fourth quarter. Meanwhile, Amazon’s advertising business rose 22% year-over-year to over $68 billion, while third-party seller services now account for nearly a quarter of total net service sales.
In contrast, Walmart still derives more than 90% of its revenue from physical and online retail operations. However, it is rapidly integrating artificial intelligence to enhance customer experience. The company’s AI assistant “Sparky,” launched in mid-2025, supports conversational shopping and product comparisons, while collaborations with Google’s Gemini and OpenAI’s ChatGPT enable shopping through AI chat interfaces.
Despite losing the top spot, Walmart reported 5.6% revenue growth in the fourth quarter and a 24% rise in global e-commerce sales. It projects 3.5% to 4.5% net sales growth for fiscal 2027. Incoming CEO John Furner highlighted the company’s strategic focus on AI-driven commerce, describing agent-led shopping as the next major evolution in retail engagement.
