Amazon is about to pass Walmart in revenue for the first time ever

The increase in revenue isn't necessarily because Amazon is selling more paper towels or hoodies than Walmart

By Kevin Williams2 min readUpdated February 11, 2025

The clash of the retail titans has entered a new phase: For the first time, Amazon $AMZN (AMZN) has surpassed Walmart $WMT (WMT) in annual revenue. The online retailer famously founded by Jeff Bezos in his garage during the 1990s has long led Walmart in market capitalization but hadn’t passed Walmart in earnings. Until now. In its earnings release after the close of trading today, Amazon is expected to report revenue of $187 billion, according to analysts. Walmart reports on Feb. 20, and is projected to announce sales of $180 billion.

Still, the increase in revenue isn’t necessarily because Amazon is selling more paper towels or hoodies than Walmart.

“Amazon has moved ahead primarily because of the increase in its web-based services,” says Albert Williams, Chair and associate professor of finance at Nova Southeastern University. He added that when it comes to retail sales the two giants are pretty evenly matched.

“Amazon is similar in revenue with Walmart with regards to its normal online retail business. But its web-based services now include AI opportunities, the latest major technology being used in business,” Williams said, and that is driving growth.

While Walmart doesn’t have anything comparable to Amazon’s web services, they do have Walmart Cloud Native Platform, an in-house supply chain and distribution technology. And Walmart has attempted to compete with Amazon on the technological front with consumer-level technologies. Walmart launched Realm in 2024, which provides a completely immersive 3-D shopping experience.

Roger Beahm, executive director of the Center for Retail Innovation at Wake Forest University School of Business, tells Quartz now that Amazon has taken the lead, it’ll probably be to stay.

“Walmart and Amazon certainly offer consumers a choice regarding a wide range of conveniently-available products at affordable prices. But with the continued growth of online shopping, especially among younger demographics, and Amazon’s positioning as the go-to option in that mode, it would be surprising if Amazon wasn’t now able to continue outpacing Walmart in revenue going forward,” Beahm says. Walmart, despite all its growth and attempts to compete, just isn’t there when it comes to product selection.

“While Walmart’s product selection is extensive, its options pale in comparison to what shoppers can obtain through Amazon.com. It’s no surprise you can almost always find more of what you’re looking for on Amazon than at Walmart,” Beahm says.

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