Amazon Overtakes Walmart as World’s Top Revenue Generator
Seattle, Thursday, 19 February 2026.
Amazon has officially ended Walmart’s reign as the largest company by revenue, posting $716.9 billion. This historic milestone signals the definitive economic shift from traditional retail to digital ecosystems.
A Historic Changing of the Guard
On Thursday, February 19, 2026, Walmart released its earnings for the fiscal year ending January 31, reporting total revenue of $713.2 billion [1][2][4]. This figure fell just short of the $716.9 billion Amazon reported earlier this month for its fiscal year ending in December 2025 [1][2][3]. While Walmart has held the top spot on the Fortune 500 for 13 of the last 24 years, this changing of the guard is expected to be formalized when the new list is published in early June 2026 [3]. The revenue gap, though narrow at 3.7 billion, represents a symbolic victory for the digital-first economy over traditional brick-and-mortar retail.
Profitability and the Cloud Factor
Beyond the top-line revenue figures, the divergence in profitability between the two giants is stark. Amazon reported an operating income of $79.98 billion for the fiscal year 2025, significantly outpacing Walmart’s $29.8 billion [4][5]. This discrepancy highlights the lucrative nature of Amazon’s diversified model, particularly Amazon Web Services (AWS). AWS generated $45.6 billion in operating income on its own, accounting for roughly 18% of the company’s total sales [1][3][4]. In contrast, if one looks strictly at retail sales, Amazon’s $588.2 billion in that segment is actually about 18% lower than Walmart’s total revenue [4].
Divergent Market Reactions
Despite taking the revenue crown, Amazon’s position on Wall Street has been precarious compared to its rival. Following its February 5 earnings report, Amazon’s stock fell for nine consecutive days, erasing more than $450 billion from its market value [1]. Year-to-date as of February 18, Amazon stock is down 11%, while Walmart is up 14% [4]. Investors appear to be favoring Walmart’s current stability; the retailer’s shares are trading near an all-time high, and its market capitalization surpassed the $1 trillion mark earlier this month on February 3, 2026 [1][3].
The Price of Innovation
The investor skepticism surrounding Amazon stems largely from its massive capital expenditure plans. The company intends to spend up to $200 billion in 2026 on initiatives including artificial intelligence, custom chips, robotics, and low earth orbit satellites [3][5]. This aggressive investment strategy aims to secure future dominance but weighs heavily on short-term sentiment. Conversely, Walmart is successfully blending its physical dominance with digital efficiency without the same level of capital intensity. The company saw its U.S. digital business grow by 27% in the fiscal fourth quarter and is actively integrating “agentic AI” to improve operations and associate productivity [1][3].