Amazon (NASDAQ: AMZN) has achieved a significant milestone by surpassing Walmart (NYSE: WMT) in quarterly revenue for the first time in history. In its recent financial report, Amazon disclosed that it generated $187.8 billion in revenue during the fourth quarter, outpacing Walmart’s sales of $180.5 billion for the same period. This marks a pivotal shift in the retail landscape, as Walmart had held the title of the highest quarterly revenue generator since 2012, following its ascent past Exxon Mobil.
While Amazon’s triumph in quarterly revenue is noteworthy, Walmart continues to lead in annual sales figures. Projections indicate that Walmart is expected to generate approximately $708.7 billion in revenue for the upcoming fiscal year, whereas Amazon’s revenue for 2025 is anticipated to reach around $700.8 billion, according to data from FactSet.
Amazon’s diverse business model plays a crucial role in its revenue growth. The company’s core retail division remains its largest source of income; however, significant contributions also come from its cloud computing services, advertising, and seller services. Notably, third-party seller services, which encompass commissions and fees for fulfillment, shipping, advertising, and customer support, accounted for 24.5% of Amazon’s total sales last year. Additionally, Amazon Web Services (AWS) contributed nearly 17% to the company’s overall revenue.
In response to this competitive pressure, Walmart is actively exploring strategies to bolster its sales growth. The retail giant has developed a third-party marketplace and provides fulfillment services for sellers, although these initiatives are considerably smaller than Amazon’s operations. Furthermore, Walmart has launched an advertising business and a loyalty program called Walmart+, which directly competes with Amazon Prime.
Despite Amazon’s recent victory in quarterly revenue, Walmart remains focused on maintaining its market position through innovation and adaptation. The company has been attracting higher-income consumers by emphasizing value and convenience in its offerings. As consumer spending patterns shift due to economic uncertainties, Walmart’s strategy appears aimed at capturing a broader customer base.
As both companies navigate this evolving retail landscape, the competition between them is likely to intensify. The rivalry between these two retail giants will continue to shape the industry as they each seek to capitalize on emerging opportunities and address challenges in an increasingly competitive market.
