Amazon reports USD 716.9 billion in annual revenue, surpassing Walmart’s USD 713.2 billion, as both retailers ramp up AI investments
Amazon has surpassed Walmart in annual revenue for the first time, marking a shift in the long-standing competition between the two US retail companies. Walmart said that it generated USD 713.2 billion in revenue in its latest fiscal year, according to Fortune. Amazon reported USD 716.9 billion in revenue in its most recent filing. The gap remains small but represents a change in ranking between the two companies.
Amazon’s revenue growth has been supported by segments beyond its core online marketplace. Although retail remains its largest business, other divisions account for a growing share of total sales.
Third-party seller services, including commissions, fulfilment and advertising fees, comprised about 24 per cent of total revenue in 2025, company filings showed. Amazon Web Services contributed approximately 18 per cent. Advertising has also become a significant source of income.
Walmart, meanwhile, continued to expand its operations. The company’s revenue has more than doubled over the past two decades. It operates more than 4,600 stores in the United States and around 600 Sam’s Club locations, which it uses to support its digital business. US ecommerce sales increased 27 per cent in the fourth quarter, marking the 15th consecutive quarter of double-digit growth, Fortune reported.
Earlier this month, Walmart’s market capitalisation exceeded USD 1 trillion after rising more than 167 per cent over the past five years.
Both companies are increasing investments in artificial intelligence as part of their broader digital strategies.
Walmart has partnered with OpenAI’s ChatGPT and Google’s Gemini to enhance product search and purchasing tools. It also introduced an in-house assistant called Sparky. According to US Chief Executive John Furner, customers who use Sparky spend about 35 per cent more on average than those who do not. Around half of Walmart’s app users have used the feature, US CEO David Guggina said during an earnings call.
“Agentic AI is increasingly embedded across Walmart,” Guggina said, adding that it is contributing to operational efficiency and productivity.
Chief Financial Officer John David Rainey said AI-related investments are included in capital expenditure plans estimated at about 3.5 per cent of sales this year. He stated that the company intends to rely on partnerships rather than develop foundational AI models independently.
Amazon has taken a different approach by expanding its in-house assistant, Rufus. The company said more than 300 million customers have used the tool, which contributed nearly USD 12 billion in annualised incremental sales last year.
Amazon plans to invest up to USD 200 billion this year in artificial intelligence infrastructure, primarily data centres and specialised chips. Chief Executive Andy Jassy said AI agents could assist customers in discovering products in a manner similar to in-store staff. The scale of the planned investment has drawn attention from investors and has coincided with recent declines in the company’s share price.
