For a long time, Walmart (WMT) has held the title of the world’s highest-grossing company, but this situation has recently changed. According to the latest financial reports, for its fiscal year 2026 ending January 31, Walmart recorded $713.2 billion in revenue, slightly trailing the $716.9 billion generated by Amazon (AMZN) in its most recent fiscal year. This marks the first time since 2009 that Walmart has lost the revenue crown.
For investors, is this change a cause for concern? Market analysis suggests the answer is no. In fact, considering the size and growth rates of both companies, this shift was anticipated. Data shows Walmart’s fiscal year revenue grew 4.7% year-over-year, while Amazon’s growth rate reached 12.4%. Analysts point out that given Walmart’s existing scale and maturity, the growth rate of its retail business naturally slows as its size increases.
Despite being overtaken in total revenue, Walmart’s value extends far beyond being a traditional retail store. While in-store sales remain its core business, the company has also made significant strides in high-margin, non-retail sectors. Its membership services and advertising business are increasingly becoming reliable sources of income.
Among these, Walmart+, the membership service competing with Amazon Prime, provides the company with a steady stream of recurring revenue. Although it’s difficult to match Prime’s scale in the short term, this remains a high-quality business segment for Walmart. Meanwhile, Walmart Connect, its fastest-growing business, operates an advertising platform that allows merchants to precisely reach consumers on Walmart’s website, app, and within its physical stores. Data indicates that revenue from this business in the U.S. market grew 41% year-over-year in the past quarter.
Furthermore, Walmart possesses a vast physical retail network that Amazon cannot match. Its numerous stores across the nation give it an advantage in the realm of same-day delivery services. Walmart is leveraging its stores as fulfillment centers, planning to extend same-day delivery coverage to approximately 95% of the U.S. population, a move expected to attract and convert some of Amazon’s customers. Analysts believe investors should be excited about this strategic “pivot” by Walmart.
However, the entry barrier for investing in Walmart is now quite high. As of February 20, Walmart’s stock was trading at 41.3 times its projected earnings per share for the next 12 months. Its valuation no longer resembles that of a typical retail store but rather a high-growth tech stock. Even among tech stocks, including the “Magnificent Seven,” this valuation level appears relatively expensive, lower only than Tesla (198.2 times) and higher than Apple’s 30.7 times.
In summary, Walmart remains an excellent long-term investment. However, analysts also caution that its currently high valuation could limit the stock’s short-term upside potential or lead to increased volatility—a key point investors need to watch.
