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Amazon surpasses Walmart in annual revenue for first time as they push deeper into AI-driven growthAmazon has reported $716.9 billion in annual revenue, surpassing Walmart’s $713.2 billion for the first time as both retailers expand AI and digital operations.By CNBCTV18.com February 20, 2026, 11:24:18 AM IST (Published)3 Min ReadAmazon has reported higher annual revenue than Walmart for the very first time, marking a new phase in the long-running rivalry between the two American giants.

Walmart said Thursday that it generated $713.2 billion in revenue for its latest fiscal year, Fortune reported. Amazon, in its most recent filing, reported $716.9 billion. The gap is small. Still, it marks a huge change after decades of Walmart holding the top line lead.

This had been building. About a year ago, Amazon pulled ahead in quarterly sales. Now it has done so across a full year.

How Amazon’s AWS and advertising fueled revenue growth

Amazon’s rise is not tied only to online shopping. Retail remains its largest segment, but other divisions now carry significant weight.

Third-party seller services – including commissions, fulfilment, and advertising fees – made up roughly 24% of total sales in 2025, according to company filings. Amazon Web Services accounted for about 18%.

Advertising has also become a meaningful contributor.

Walmart, for its part, did not shrink. Its revenue has more than doubled over the past two decades. The retailer continues to rely on its more than 4,600 US stores and around 600 Sam’s Club locations to support digital growth. US e-commerce rose 27% in the fourth quarter – marking 15 consecutive quarters of double-digit gains, Fortune reported.

Earlier this month, Walmart’s market value crossed $1 trillion, following a more than 167% rise over the last five years.

Amazon vs Walmart: AI becomes the next battleground

Both companies are now leaning heavily into artificial intelligence.

Walmart has partnered with OpenAI’s ChatGPT and Google’s Gemini to improve product search and purchasing tools. It also introduced its own assistant, Sparky. According to CEO John Furner, customers using Sparky spend about 35% more on average than those who do not. Roughly half of Walmart’s app users have tried it, US CEO David Guggina said on the earnings call.

“Agentic AI is increasingly embedded across Walmart,” Guggina noted, adding that it is improving operations and productivity.

Walmart’s CFO John David Rainey said AI spending is included in capital expenditures projected at about 3.5% of sales this year. He also made clear the company will rely on partnerships rather than build foundational AI models itself.

Amazon’s capital spending, AI infrastructure and market reaction

Amazon has taken a different path. It has expanded its in-house assistant, Rufus, which the company says has been used by more than 300 million customers and contributed nearly $12 billion in annualised incremental sales last year.

At the same time, Amazon plans to invest up to $200 billion this year in AI infrastructure, primarily data centres and chips. CEO Andy Jassy said AI agents could help shoppers discover products much like store employees do. The spending has drawn scrutiny from Wall Street, contributing to recent share price declines.

Also Read: US launches $200 million 'Edge AI Package' to boost secure smartphones in Indo-Pacific regionContinue Reading(Edited by : Juviraj Anchil)TagsamazonWalmart