Amazon has officially surpassed Walmart to become the world’s largest company by annual sales, marking a historic shift in a rivalry that has defined modern retail for more than a decade. The milestone underscores how digital infrastructure and cloud computing are reshaping the balance of power between traditional brick-and-mortar giants and technology-driven platforms.
For the most recent fiscal year, Amazon reported revenue of $716,900,000,000, narrowly edging out Walmart, which posted $713,200,000,000 in annual sales. While the gap is relatively small, the symbolic significance is substantial. Walmart had held the top position for years, leveraging its nearly 11,000 stores worldwide and a workforce exceeding 2,000,000 employees to dominate global retail.
The power of cloud computing and AI
The decisive factor behind Amazon’s ascent is not simply its e-commerce operations, but the rapid expansion of its technology division. Amazon Web Services, widely recognized as the global leader in cloud computing, has become the company’s primary growth engine. As businesses accelerate investments in artificial intelligence and data analytics, demand for large-scale computing infrastructure has surged.
Recent financial disclosures show that AWS delivered its strongest growth in years, fueled by enterprises migrating workloads and developing AI-powered applications. The strategic advantage lies in Amazon’s vast network of data centers and its ability to provide scalable, on-demand computing resources. Industry observers tracking developments at Amazon Web Services note that AI-driven workloads are increasingly central to corporate digital strategies.
Walmart, for its part, has entered the AI conversation by enhancing its retail technology and launching digital shopping assistants aimed at improving customer experience. However, it does not operate a competing cloud services platform, leaving Amazon with a structural advantage in the high-margin technology sector.
A shifting battle for consumers
On the retail front, the competition between the two companies remains intense. The United States is the largest market for both, and each is aggressively pursuing consumer dollars through pricing strategies, delivery speed and digital integration.
Walmart recently reported 24% growth in online sales and expanded its same-day and rapid delivery options, including services capable of fulfilling orders within hours. The company has also highlighted rising engagement among higher-income shoppers, a segment it identifies as one of its fastest-growing customer groups.
Meanwhile, Amazon continues to refine its logistics network, streamline warehouse operations and integrate technology across its ecosystem. Despite acquiring Whole Foods in 2017, Amazon’s physical retail footprint remains limited compared with Walmart’s global presence. Instead, its dominance in online retail and subscription services reinforces its competitive edge.
The divergence between the two companies is also reflected in capital markets. Earlier this year, Walmart’s market value surpassed $1,000,000,000,000, an extraordinary benchmark for a retailer. Amazon, however, exceeded $2,000,000,000,000 in market capitalization in 2024, underscoring investor confidence in its hybrid model of commerce and technology. Market data available through platforms such as New York Stock Exchange filings illustrate how both companies have attracted sustained investor interest amid evolving global consumption patterns.
