Amazon Surpasses Walmart in Sales: New Retail King in 2026
"Amazon has officially overtaken Walmart as the world’s largest company by revenue in 2026, hitting $716.9B."
Imagine scrolling through your phone late at night, adding groceries, gadgets, and gifts to a virtual cart with a few taps. That seamless habit, amplified by years of pandemic shifts and tech innovations, has just propelled one company past a longtime giant. Amazon, the e-commerce behemoth that started as an online bookstore, has officially surpassed Walmart in annual sales revenue for the first time ever. This isn't just a numbers game—it's a signal of how shopping, jobs, and even economies are evolving right under our noses.
In a world where convenience reigns supreme, this milestone hits home for billions. With inflation easing but habits sticking, consumers are leaning harder on digital platforms for everything from essentials to indulgences. Amazon's ascent reflects broader trends: the rise of AI-driven recommendations, lightning-fast delivery, and integrated services that blur lines between retail and tech. But why does this matter now? As we emerge from economic turbulence, this shift underscores who's winning the battle for our wallets—and what it means for the future of commerce.
The timing couldn't be more poignant. With global retail sales projected to top $30 trillion this year, Amazon's leap highlights a pivotal moment. Traditional brick-and-mortar empires like Walmart have dominated for decades, but the digital tide is turning faster than expected. This isn't about one company overtaking another; it's about redefining what "biggest" means in a hybrid world where online and offline worlds collide.
So, what exactly happened? Let's break it down. Amazon reported a staggering $716.9 billion in revenue for 2025, marking a 12% jump from the previous year. This figure edges out Walmart's projected $712 billion for its fiscal year ending January 2026. While Walmart held the top spot for over a decade with its vast network of stores and everyday low prices, Amazon's growth has been relentless.
Much of this comes from Amazon's diversified empire. Its core e-commerce operations in North America alone brought in about $387 billion, bolstered by international sales of $143 billion. But don't overlook Amazon Web Services (AWS), the cloud computing arm that generated $128.7 billion—fueling profits that dwarf Walmart's margins. AWS isn't just a side hustle; it's a profit engine, contributing to Amazon's nearly three times the earnings of Walmart despite similar sales volumes in some quarters.
Walmart, meanwhile, isn't standing still. The retail titan saw its revenue climb to $681 billion in fiscal 2025, up 5.1% year-over-year, with online sales surging 16% in the fourth quarter. Initiatives like its third-party marketplace, which grew 34% in the U.S., show Walmart adapting to the digital wave. Yet, Amazon's 11% overall growth rate outpaced Walmart's, driven by innovations in logistics, advertising, and AI.
This overtake didn't happen overnight. Back in 2015, Amazon passed Walmart in market capitalization, but revenue was the final frontier. The pandemic accelerated everything—online shopping exploded, and Amazon invested heavily in fulfillment centers and same-day delivery. By 2024, Amazon had already topped Walmart in quarterly revenue, ending a 12-year streak. Now, with full-year figures in, the crown has shifted.
To visualize this trajectory, consider the steady climb in sales charts over the past decade. Amazon's line has steepened sharply, crossing Walmart's in recent projections.
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Why does this flip matter beyond boardrooms? For everyday shoppers, it means more competition—and potentially better deals. Amazon's dominance pushes prices down through algorithms that monitor rivals in real-time. Think about it: Prime members get free shipping, exclusive deals, and integrated entertainment via Prime Video. Walmart counters with Walmart+, offering similar perks like fuel discounts and Paramount+ access. This rivalry benefits you, the consumer, with faster innovations and lower costs.
On a broader scale, the impact ripples through industries. Traditional retailers face mounting pressure to digitize. Target, for instance, has seen sales dip while Walmart and Amazon thrive, highlighting the divide between adapters and laggards. Jobs are shifting too—Amazon's warehouses employ millions, but automation and AI could reshape roles. Walmart's recent push into AI partnerships, like with OpenAI for grocery restocking, shows even giants must evolve.
Economically, this signals tech's encroachment on retail. Amazon isn't just a store; it's a ecosystem with advertising revenue soaring 53% globally. This diversification gives it resilience—during downturns, AWS keeps cash flowing. For investors, Amazon's stock has rewarded patience, while Walmart's market cap hitting $1 trillion in early 2026 marks its own tech pivot, including a switch to Nasdaq listing.
Small businesses feel the squeeze and opportunity. Selling on Amazon's marketplace exposes products to billions, but fees and competition are fierce. Walmart's marketplace growth offers an alternative, with lower barriers for some sellers. Globally, this dynamic affects supply chains—Amazon's logistics arm rivals FedEx, influencing everything from shipping rates to environmental footprints.
Looking ahead, what does this mean for you? If you're a shopper, expect even more personalized experiences. AI will suggest items before you know you need them, blending retail with predictive tech. For businesses, the lesson is clear: integrate online and offline seamlessly or risk falling behind. Walmart's hybrid model—stores as fulfillment hubs—could inspire others.
This shift also raises questions about monopoly power. Regulators are watching Amazon closely, with ongoing antitrust scrutiny. But for now, the competition seems healthy, spurring innovation that trickles down to consumers.
In essence, Amazon's dethroning of Walmart isn't the end of an era—it's the dawn of a more integrated one. As retail blurs with tech, staying adaptable is key. Whether you're stocking up on essentials or eyeing investments, this moment reminds us: the biggest players aren't just selling products; they're shaping how we live.
Disclaimer: This article is based on publicly available financial reports and analyses as of February 2026. Market conditions can change rapidly, and any investment decisions should involve professional advice.