Walmart loses sales crown to Amazon despite record revenues – Financial Times
Walmart has lost its crown as the world’s largest company by sales to Amazon despite reporting record annual revenues.
The US retailer reported sales of $190.7bn in its fourth quarter, up 5.6 per cent year on year, bringing the total for the 12 months to January to $713.2bn in a surge underpinned by its growing online business.
Earlier this month Amazon posted annual revenues of $716.9bn for 2025.
Walmart stock has more than doubled over the past two years, driving its market capitalisation above $1tn, though shares closed 1.4 per cent lower on Thursday.
The company recently shifted its listing to the tech-focused Nasdaq exchange as it sought to emphasise technology investments, including automation and AI.
Net sales are forecast to grow between 3.5 and 4.5 per cent — slower than last year’s pace of 4.7 per cent.
Walmart executives were “overall constructive on the economy”, said finance chief John David Rainey. “But there are certainly indicators out there, whether it be a hiring recession, or maybe subdued consumer sentiment, student loan delinquencies . . . that would make you want to be more balanced,” he said.
Households earning less than $50,000 a year have felt stress, with some “people living pay cheque to pay cheque”, said John Furner, chief executive.
Walmart continued to win market share among upper-income households earning more than $100,000, he added.
Rainey said Walmart had typically raised its initial financial guidance over the past three years before surpassing it. Walmart forecast a 6 to 8 per cent rise in adjusted operating profit this year.
The earnings were the first under Furner, who took over this month from longtime boss Doug McMillon.
Furner previously ran Walmart’s sprawling US business, whose same-store sales rose by 4.6 per cent in the quarter, beating analyst estimates of a 4.2 per cent increase, according to Visible Alpha.
Consumers seeking a reprieve from inflation have sought out Walmart’s low prices after sustained inflation. At Walmart US, grocery inflation of 0.6 per cent was well below the national trend, and like-for-like grocery sales rose by mid-single digits on year.
Walmart reported robust growth in online sales, which has attracted more affluent customers with swift home deliveries and a marketplace offering products from third-party sellers. Annual global ecommerce sales topped $150bn for the first time after surging 24 per cent year on year in the final quarter.
Operating profit rose 10.8 per cent to $8.7bn in the quarter to January 31, slightly below estimates of $8.9bn, according to analysts polled by Visible Alpha.
A third of operating profits came from higher-margin business, such as fees for the Walmart+ membership scheme and member-only Sam’s Club chain, as well as advertising sold to suppliers.
However, net income declined 19.4 per cent to $4.2bn, pulled down by changes in the fair value of certain investments.
