Amazon’s 2025 revenue ($716.9B) edged past Walmart’s fiscal 2026 revenue ($713.2B, year to 31 Jan 2026), the first year Amazon is the larger of the two. The profit gap is much wider: Amazon’s operating income was $80.0B against Walmart’s $29.8B (11.2% vs 4.2% of revenue), mostly because of AWS. Walmart still employs more people: about 2.1 million associates against Amazon’s 1.58 million employees.
Sources: Amazon Form 10-K for 2025 and Walmart Form 10-K for fiscal 2026. Analysis by The Business Engineer.
Correction (11 Oct 2026): an earlier version said Walmart had “expanded to over 11,000 stores in 28 countries” and described Amazon as still closing the revenue gap. Walmart’s fiscal 2026 10-K reports 10,955 retail units in 19 countries (10-K), and Amazon’s 2025 revenue is now larger than Walmart’s latest fiscal year (Amazon 10-K). The older text is kept, collapsed, at the end of the page.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Amazon vs Walmart: the key numbers
| Metric | Amazon 2025 | Walmart FY26 |
|---|---|---|
| Revenue | $716.9B | $713.2B |
| Operating income | $80.0B | $29.8B |
| Operating margin* | 11.2% | 4.2% |
| Net income | $77.7B | $21.9B |
| Operating cash flow | $139.5B | $41.6B |
| Capital expenditure | $131.8B | $26.6B |
| Employees, year-end | 1.58M | 2.1M |
Source: Amazon Form 10-K for 2025 and Walmart Form 10-K for fiscal 2026 (SEC EDGAR). Amazon: calendar 2025; Walmart: fiscal 2026, year to 31 Jan 2026. *Calculated.
Amazon passed Walmart in revenue in 2025
From 2016 to 2025 Amazon grew revenue 5.3ร (from $136.0B), while Walmart grew 1.47ร over the matching fiscal years (from $485.9B). The lines crossed in 2025: $716.9B for Amazon against $713.2B for Walmart. Walmart’s fiscal year ends on 31 January, so its fiscal 2026 covers almost the same months as Amazon’s calendar 2025.
What drives the difference
Amazon earns most of its profit outside retail. AWS sold $128.7B in 2025, 18% of Amazon’s revenue, but earned $45.6B of operating income, 57% of the total (calculated from the segment results in the 10-K). Advertising services added $68.6B of revenue. Excluding AWS, Amazon’s North America and International segments earned $34.4B on $588.2B of sales, a 5.8% margin.
Walmart is a store-based retailer with a thin margin. Walmart U.S. produced $483.0B of net sales and $25.2B of operating income in fiscal 2026; International $130.4B and $5.1B; Sam’s Club U.S. $93.0B and $2.4B (10-K). Its higher-margin lines are growing fast but are still small: membership and other income was $6.8B.
Investment is the other big gap. Amazon spent $131.8B on property and equipment in 2025, 4.9ร Walmart’s $26.6B, mostly to build data-centre capacity for AWS. Walmart spends on stores, automation and its supply chain.
What to watch
- Amazon’s cash cushion. Trailing twelve-month capex reached $169.0B by Q2 2026, and trailing free cash flow was $-7.6B (Amazon Q2 2026 10-Q).
- The revenue race. Amazon’s Q2 2026 net sales were $200.6B, +19.6% year on year; Walmart’s Q2 fiscal 2027 revenue was $187.9B, +5.9% (Walmart Q2 FY27 release).
- Walmart’s higher-margin lines. In Q2 fiscal 2027 Walmart’s global eCommerce grew 23%, advertising 38% and membership fee income 17% (release).
Keep exploring
- Walmart vs Amazon: two retail business models
- Walmart revenue by year
- Amazon revenue breakdown
- Costco vs Walmart
- Target vs Walmart
Earlier analysis and background
Earlier analysis and background (pre-2026 figures)
The text below is the earlier version of this page. Its figures refer to earlier periods and some were corrected above; the current, sourced figures are in the sections above.
Amazon and Walmart run both retail business models. In contrast, Amazon started as a digital player, then expanded into the physical world, and Walmart instead successfully launched its e-commerce platform over the years.
In 2023, Amazon closed its divide in terms of total revenue, as it generated over $574.78 billion in revenue, compared to over $611.29 billion in revenue from Walmart.
While Amazon and Walmart are direct competitors in retail and now also e-commerce, at the core, the companies are pretty similar (both target variety and convenience, while Amazon obsesses over customer experience); in reality, Amazon is a company with many moving parts.
Indeed, by 2022, Amazon had various moving parts, such as advertising, and AWS.
Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources.
AWS (cloud business), in particular, is a key element of Amazon’s business model today and also what contributes most to its profitability.
Amazon is subdivided into three operating profit segments: North America, International, and AWS. Amazon AWS is the most profitable segment, with almost $23 billion in operating profit in 2022. While Both the North American and International segments run at negative operating losses, with $2 billion and $7.74 billion in operating losses, respectively, in 2022.
Walmart (also building a successful e-commerce operation) has remained focused on its core business.
Walmart generated over $572 billion in revenue in 2022 and over $13.6 billion in net profits in the same year. Compared to over $559 billion in revenue in 2021 and over $13.5 billion in net profits.
Business Model Element ยท Amazon ยท Walmart ยท Similarities ยท Differences ยท Competitive Advantage
Customer Segments
Amazon: Online shoppers, cloud computing clients, e-book readers
Walmart: In-store shoppers, e-commerce customers, grocery shoppers
Similarities: Both target a wide range of customer segments, including online shoppers. Amazon has a cloud computing division. Walmart has a strong presence in physical retail and grocery.
Differences: Amazon’s significant focus on e-commerce and cloud computing. Walmart’s extensive network of physical stores and emphasis on traditional retail and grocery.
Competitive Advantage: E-commerce Dominance (Amazon), Extensive Physical Retail Presence (Walmart).
Value Proposition
Amazon: Convenience, vast product selection, Prime membership benefits
Walmart: Low prices, one-stop shopping, physical store presence
Similarities: Both emphasize convenience and value. Amazon offers a vast product selection and Prime membership benefits. Walmart’s value proposition centers around low prices and one-stop shopping.
Differences: Amazon’s online convenience and vast product selection. Walmart’s focus on affordability and a significant physical store presence.
Competitive Advantage: E-commerce Convenience (Amazon), Everyday Low Prices (Walmart).
Channels
Amazon: Online platform, third-party sellers, Prime membership
Walmart: Physical stores, e-commerce website, online grocery ordering
Similarities: Both use online platforms for sales. Amazon allows third-party sellers on its platform. Walmart operates physical stores and has an e-commerce website.
Differences: Amazon’s exclusive online presence and third-party seller platform. Walmart’s extensive network of physical stores and its expansion into online grocery ordering.
Competitive Advantage: Extensive Online Presence (Amazon), Physical Retail Footprint (Walmart).
Customer Relationships
Amazon: Digital interactions, customer reviews, Prime membership benefits
Walmart: In-store interactions, loyalty programs, customer service
Similarities: Both maintain customer relationships through digital interactions. Amazon relies on customer reviews and Prime membership benefits. Walmart fosters in-store interactions, loyalty programs, and customer service.
Differences: Amazon’s focus on digital customer interactions and reliance on Prime membership. Walmart’s emphasis on in-store relationships and traditional customer service.
Competitive Advantage: Digital Engagement (Amazon), In-Store Relationships (Walmart).
Key Activities
Amazon: E-commerce operations, cloud computing, content creation
Walmart: Retail operations, supply chain management, private label brands
Similarities: Both engage in e-commerce operations. Amazon has a cloud computing division and content creation (e.g., Amazon Studios). Walmart focuses on retail operations, supply chain management, and private label brands.
Differences: Amazon’s diversification into cloud computing and content creation. Walmart’s core focus on traditional retail and supply chain management.
Competitive Advantage: Cloud Computing and Content Creation (Amazon), Traditional Retail Expertise (Walmart).
Key Resources
Amazon: E-commerce platform, data centers, content libraries
Walmart: Physical stores, supply chain infrastructure, private label brands
Similarities: Both rely on e-commerce platforms. Amazon has data centers and content libraries. Walmart’s key resources include physical stores, supply chain infrastructure, and private label brands.
Differences: Amazon’s emphasis on digital resources, data centers, and content libraries. Walmart’s reliance on physical retail assets, extensive supply chain, and private label brands.
Competitive Advantage: Digital Resources (Amazon), Physical Retail Assets (Walmart).
Key Partnerships
Amazon: Third-party sellers, content creators, delivery services
Walmart: Suppliers, technology partners, delivery and logistics providers
Similarities: Both collaborate with third-party sellers and delivery services. Amazon partners with content creators. Walmart collaborates with suppliers, technology partners, and logistics providers.
Differences: Amazon’s partnerships with content creators and its broader range of technology collaborations. Walmart’s focus on supplier relationships and logistics partnerships.
Competitive Advantage: Content Creation Partnerships (Amazon), Strong Supplier Relationships (Walmart).
Revenue Streams
Amazon: Product sales, subscription services, advertising
Walmart: Product sales, in-store services, advertising
Similarities: Both generate revenue through product sales and advertising. Amazon has subscription services (e.g., Prime). Walmart offers in-store services in addition to product sales.
Differences: Amazon’s diverse revenue streams, including subscription services and advertising. Walmart’s primary revenue source is product sales, both in-store and online.
Competitive Advantage: Subscription Services (Amazon), In-Store Service Offerings (Walmart).
Cost Structure
Amazon: Fulfillment and shipping costs, technology development expenses
Walmart: Supply chain and operational costs, employee wages
Similarities: Both manage costs related to fulfillment and technology. Amazon incurs significant costs for fulfillment and technology development. Walmart focuses on supply chain and operational costs.
Differences: Amazon’s higher technology development expenses and investment in fulfillment and shipping. Walmart’s cost structure centered around supply chain efficiency and employee wages.
Competitive Advantage: Technology Investment (Amazon), Supply Chain Efficiency (Walmart).
Related to Amazon Business Model
Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources.
Amazon was profitable in 2023. On nearly $575 billion in revenue for 2023, Amazon generated a net profit of over $30 billion. Since 2014, Amazon hasn’t recorded a net loss, but it did record a net loss of over $2.7 billion in 2022, while it recouped that in 2023. Indeed, in 2014, Amazon reported a net loss of $241 million, and it would be profitable until 2021. In 2022, Amazon turned unprofitable again and highly profitable again in 2023.
Amazon subscription revenue in 2023 was over $40 billion, compared to over $35 billion in 2022 and nearly $32 billion in 2021. Amazon Prime grew from a $4.5 billion revenue segment in 2015 to an over $40 billion segment in 2023.
Amazon Organizational Structure
Walmart generated $611.29 billion in revenue in 2023 and $11.68 billion in profits, compared to $572 billion in revenue in 2022 and over $13.6 billion in net profits in the same year. Compared to over $559 billion in revenue in 2021 and over $13.5 billion in net profits.
Walmart generated $611.29 billion in revenue in 2023, compared to over $572 billion in revenues in 2022 and $559 billion in 2021.
In 2023, Walmart reported 240 million customers compared to 230 million global customers in 2022, 240 million customers in 2021, and 265 million customers in 2019.
In 2023 Walmart had 10,500, same in 2022, compared to 11,400 stores globally, in 2021.
Walmart had 2.1 million associates globally in 2023, compared to 2.3 million associates globally in 2022, the same number in 2021. In 2020, Walmart had 2.2 million associates globally.
Walmart Organizational Structure
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