Amazon has overtaken Walmart in quarterly revenue for the first time ever, marking a significant milestone in the retail landscape. In the most recent quarter, Amazon reported an impressive $187.8 billion in revenue, surpassing Walmart's quarterly sales of $180.5 billion. This achievement underscores Amazon's growing influence and diversified business model, while Walmart still leads in annual sales.
Amazon's core retail unit remains its largest revenue generator, but the company's growth is also driven by its expansive cloud computing, advertising, and seller services businesses. Notably, Amazon Web Services contributed nearly 17% to the company's revenue, highlighting the importance of cloud computing in its portfolio. Additionally, Amazon's third-party marketplace and fulfillment services accounted for 24.5% of its total sales last year, reflecting the growing demand for these offerings.
Walmart, on the other hand, is projected to achieve $708.7 billion in revenue for the upcoming fiscal year, maintaining its lead in annual sales. However, Amazon is expected to narrow this gap with a forecasted full-year revenue of $700.8 billion for 2025. Despite losing ground in quarterly sales, Walmart is taking proactive steps to enhance its competitive position by launching an advertising business and a loyalty program named Walmart+. This initiative aims to rival Amazon Prime and strengthen customer loyalty.
Amazon's recent success in overtaking Walmart in quarterly revenue can be attributed to its strategic diversification efforts. By investing heavily in its cloud computing and seller services divisions, Amazon has been able to expand beyond its traditional retail operations. This broadening of services has enabled the company to tap into new revenue streams and attract a wider customer base.
In addition to its financial achievements, Amazon continues to innovate and adapt to changing consumer preferences. The company's ability to consistently outperform expectations and seize new opportunities has been instrumental in its ascent to the top of the retail hierarchy. As both Amazon and Walmart continue to evolve and expand their offerings, the competition between these retail giants is expected to intensify in the coming years.