economy
February 19, 2026
Amazon surpasses Walmart in annual revenue for first time, as both chase AI-fueled growth
The shuffle underscores the rivalry between the two retailers, particularly as Walmart expands its advertising and third-party marketplace businesses.
TL;DR
- Amazon has dethroned Walmart as the company with the largest annual revenue.
- Amazon's total revenue reached $716.9 billion, surpassing Walmart's $713.2 billion.
- This milestone reflects the intense rivalry between the two retailers and their adaptation to evolving consumer preferences.
- Both companies are heavily investing in artificial intelligence (AI) to reshape operations, sales, and customer experiences.
- Amazon's revenue streams include its core retail business, cloud computing, advertising, and seller services.
- Walmart's revenue growth has been sustained by its extensive store network and a 27% growth in its digital business.
- Walmart is positioning itself as a tech company, evidenced by its stock market listing on Nasdaq and market value surpassing $1 trillion.
- Both retailers are exploring AI for product discovery, personalized shopping, and operational efficiency.
- Walmart is partnering with AI companies like OpenAI and Google, and utilizes its own AI assistant, Sparky.
- Amazon is also developing its own AI shopping assistant, Rufus, and investing significantly in AI infrastructure, including data centers and chips.
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