While Walmart still leads in annual sales, Amazon is closing the gap. Projections indicate that Walmart will generate $708.7 billion in the upcoming fiscal year, while Amazon’s full-year revenue for 2025 is expected to reach $700.8 billion, according to FactSet.

Amazon’s core retail operations continue to be its largest revenue source, but other segments are also driving growth. The company’s diverse portfolio includes substantial contributions from its cloud computing services, advertising, and seller services. Notably, third-party seller services—which encompass commissions and fees from fulfillment, shipping, and advertising—accounted for 24.5% of Amazon’s total sales last year. Amazon Web Services (AWS) contributed nearly 17% to the top line.

In response to Amazon’s growing dominance, Walmart has been exploring strategies to maintain its sales momentum. The company has developed a third-party marketplace and offers fulfillment services, though these initiatives remain significantly smaller than Amazon’s. Additionally, Walmart has launched an advertising division and introduced a shopper loyalty program, Walmart+, which competes directly with Amazon Prime.

As both companies continue to innovate and expand their offerings, the retail landscape is evolving, with Amazon now leading in quarterly revenue while Walmart aims to bolster its competitive edge.