Amazon has officially surpassed Walmart as the world's largest company by total annual sales, reporting $717 billion in 2025 sales against Walmart's $713.2 billion, ending Walmart's 13-year reign. This milestone is driven primarily by Amazon Web Services (AWS); without AWS, Amazon's 2025 revenue would have been an estimated $588 billion, placing it behind Walmart. Kirthi Kalyanam, executive director of the Retail Management Institute at Santa Clara University, stated, "Amazon didn't beat Walmart in the retail game. It just beat them in revenue by launching a new business Walmart doesn't operate in." Amazon's current market capitalization is $2.20 trillion, more than double Walmart's $1.02 trillion. Despite Amazon's higher growth trajectory and analyst "Buy" consensus, its valuation metrics are stretched, while Walmart offers a more defensive play with improving e-commerce profitability and a consistent dividend. Walmart is demonstrating resilience and strategic agility, particularly in e-commerce and grocery, attracting more affluent shoppers.