Here's something you don't see every day: the people who built a grocery empire are now richer than the guy who built the world's dominant software company. Walmart Inc. (WMT) just delivered a strong quarterly performance, and the stock is flirting with all-time highs. For Sam Walton's children, this translates to a very good year indeed.

Retail Royalty Overtakes Tech Nobility

The 2025 billionaire rankings have gotten interesting. Microsoft Corp (MSFT) co-founder Bill Gates has officially dropped out of the top 10, and all three of the primary Walmart heirs now outrank him. According to Bloomberg's latest numbers, here's how the pecking order shakes out:

• 12th: Jim Walton – $131 billion, up $18.7 billion year-to-date
• 13th: Rob Walton – $128 billion, up $18.6 billion year-to-date
• 14th: Alice Walton – $128 billion, up $18.7 billion year-to-date
• 15th: Bill Gates – $117 billion, down $41.3 billion year-to-date

Yesterday alone, each of the Walton siblings added at least $5.8 billion to their fortunes as Walmart shares climbed. That's the kind of day that makes you reconsider your career choices.

The Walmart Dynasty Runs Deep

Bloomberg calculates the Walton wealth based on their assumed splits in family holdings and Walton Enterprises, which together control approximately half of Walmart. But the retail fortune doesn't stop there. The children also hold various stakes in Arvest Bank, Arkansas's second-largest bank and a reminder that the Waltons diversified beyond low prices and smiley faces.

Rob Walton, the eldest of Sam's children, adds NFL ownership to his resume. He's part of the ownership group that bought the Denver Broncos for $4.65 billion in 2022, holding around 34% of the team. Not a bad side investment.

Further down the list, the Walmart wealth extends to more family members. Lukas Walton (#38 globally) and Christy Walton (#115) represent the next generation and extended family. Lukas, the only child of the late John T. Walton (Sam's second-oldest son who died in 2005), owns approximately 3.7% of Walmart and 8% of Arvest Bank. His stepmother Christy holds roughly 1.9% of Walmart and 4% of Arvest Bank.

Lukas and Christy are worth $45.2 billion and $21.1 billion respectively, having gained $6.47 billion and $3.54 billion in 2025 alone. The Walton family tree might as well be made of money at this point.

Why Gates Is Falling Behind

Bill Gates has had a rough 2025 by billionaire standards. He's one of the few top-tier billionaires actually losing wealth this year, dropping from seventh place at the end of 2024 to 15th now. That's his first time outside the top 10 in 34 years.

Several factors explain the reversal. First, the performance gap: Walmart stock is up 18.6% year-to-date while Microsoft has gained 12.8%. Not a massive difference, but when you're talking about trillion-dollar companies, it adds up quickly.

More importantly, ownership matters. The Walton heirs control roughly half of Walmart, so every percentage point gain in the stock price directly impacts their net worth. Gates, meanwhile, owns only about 1% of Microsoft. He's diversified his wealth across numerous investments, which provides stability but limits the upside from any single stock surge.

Then there's philanthropy. Gates has committed to donating 99% of his wealth to the Gates Foundation over the next two decades. Bloomberg actually adjusted his wealth calculation earlier this year to reflect these ongoing charitable commitments. It's hard to stay at the top of the billionaire list when you're actively trying to give your fortune away.

A Changing of the Guard

For perspective, Gates was the world's richest person for 18 years, dominating the Forbes list from 1995 to 2007 and reclaiming the top spot intermittently through 2017. His continuous presence in the top 10 stretched back 34 years before this recent slide.

The Walton family could climb even higher. Walmart shares are trading at $106.75, just shy of the all-time high of $109.58 set in October 2025. Meanwhile, other tech stocks like Oracle, Nvidia, and Alphabet have been soaring, pushing their founders up the rankings and leaving Microsoft looking relatively sluggish.

With Microsoft stock trailing both Walmart and its technology peers, and Gates focused on giving his money away rather than accumulating more, don't be surprised if more billionaires pass him in 2025 and 2026. Sometimes the tortoise beats the hare, and sometimes the grocery chain beats the software giant.