Amazon has overtaken Walmart as the world's largest company by annual revenue, marking a significant shift in the retail landscape. Walmart reported $713.2 billion in revenue for its most recent fiscal year, falling short of Amazon's $716.9 billion by just $3.5 billion or 0.5%. This milestone follows Amazon's first-quarter revenue victory in February 2025, when it reported $187.8 billion compared to Walmart's $180.5 billion.

Amazon's diversified business model, extending beyond e-commerce into cloud computing, advertising, and third-party seller services, has fueled its ascent to the top position. Third-party seller services accounted for approximately 24% of Amazon's total sales in 2025, while Amazon Web Services contributed roughly 18%. Despite losing the top revenue spot, Walmart has more than doubled its revenue over the past two decades and continues to show strong digital growth, with its U.S. digital business expanding 27% in the fiscal fourth quarter.

This development highlights the ongoing competition between the retail giants as they adapt to evolving consumer preferences and embrace new technologies, particularly artificial intelligence. While largely symbolic, Amazon's achievement underscores the changing dynamics in retail, where tech-driven diversification increasingly drives growth over traditional retail dominance.