Walmart's Revenue Surpassed by Amazon for the First Time
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy WMT?
Source: Fool
- Revenue Competition Shift: In fiscal year 2026, Walmart reported $713.2 billion in revenue, marking the first time it was surpassed by Amazon's $716.9 billion, with Walmart's 4.7% growth overshadowed by Amazon's 12.4%, indicating intensified competition in the retail sector.
- High-Margin Business Growth: Walmart's membership service, Walmart+, and its advertising platform, Walmart Connect, are emerging as reliable income sources, with Walmart Connect achieving a remarkable 41% year-over-year growth in the last quarter, showcasing the company's successful pivot to higher-margin segments.
- Same-Day Delivery Expansion: Leveraging its extensive store network, Walmart plans to expand same-day delivery services to 95% of the U.S., a strategy that not only enhances customer experience but also has the potential to attract Amazon customers, thereby strengthening its market competitiveness.
- Investment Valuation Assessment: With a price-to-earnings ratio of 41.3, Walmart is positioned as a high-growth stock, and while its long-term investment outlook remains positive, the high valuation could lead to increased short-term volatility, necessitating careful risk assessment by investors.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 124.420
Low
119.00
Averages
125.75
High
136.00
Current: 124.420
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Partnerships: Walmart's collaborations with OpenAI and Google's Gemini aim to create AI-assisted shopping experiences, which may already be yielding results, further strengthening Walmart's competitive edge in e-commerce.
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See More
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- Infrastructure Expansion: OpenAI will leverage Amazon Web Services (AWS) infrastructure, committing to deploy 2 gigawatts of Trainium AI chips, which not only boosts OpenAI's computational capabilities but also presents new growth opportunities for Amazon's cloud services business.
- Market Competitive Advantage: This partnership positions Amazon more favorably against competitors like Microsoft and Google in the AI market, particularly by gaining access to powerful AI models from OpenAI, which could drive innovation in its consumer products.
- Long-term Strategic Layout: The collaboration with OpenAI not only supplements existing AI technologies but may also foster further cooperation in emerging areas like agentic commerce, demonstrating Amazon's commitment to long-term investments in the AI domain.
See More
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