Amazon Surpasses Walmart in Quarterly Revenue for First Time

In a significant shift in the retail landscape, Amazon has surpassed Walmart in quarterly revenue for the first time ever. Amazon announced earlier this month that it generated $187.8 billion in revenue during the fourth quarter, surpassing Walmart's sales of $180.5 billion for the same period.

Walmart had held the title of top revenue generator each quarter since 2012, a position it secured after overtaking oil giant Exxon Mobil. However, Amazon's strong performance in the fourth quarter marks a turning point in the competitive battle between the two retail giants.

Amazon's Diversified Revenue Streams

While Walmart still leads in annual sales, with a projected $708.7 billion for the fiscal year ahead, Amazon is rapidly closing the gap. FactSet predicts that Amazon's full-year revenue for 2025 will reach $700.8 billion. Amazon's success can be attributed to its diversified revenue streams, with its core retail unit remaining the biggest contributor. However, the company's cloud computing, advertising, and seller services businesses are also playing a significant role in driving growth.

Third-party seller services, which encompass commissions and fees collected by Amazon on fulfillment, shipping, advertising, and customer support, accounted for 24.5% of the company's total sales last year. Amazon Web Services (AWS), its cloud computing platform, contributed nearly 17% of the revenue.

Recognizing the need to keep pace with Amazon, Walmart has adopted strategies inspired by its rival. The company operates a third-party marketplace and offers sellers fulfillment services, although these businesses are considerably smaller in scale compared to Amazon's operations. Walmart has also launched an advertising business and a loyalty program called Walmart+, which competes with Amazon Prime.