Walmart joins the trillion-dollar club: traditional retail giant quietly transforming into a tech powerhouse

On February 3rd, during the US stock market trading session, the global retail giant Walmart (WMT.US) saw its stock price increase by over 1.2%, with its market capitalization surpassing one trillion dollars for the first time. Data from the market cap platform Companiesmarketcap shows that Walmart ranks 12th among global companies by market value, surpassing Samsung, Tencent, Micron Technology (MU.US), and other tech companies.

Image source: Companiesmarketcap official website

As of February 2nd, Walmart’s stock price soared to $124.06 per share, with a total market cap of $989.11 billion. This year, Walmart’s stock has risen over 11%, with a cumulative increase of 23.63% in 2025, outperforming the S&P 500 index. Recently, it has stood out among peers like Amazon and Costco, whose stock performances have been lackluster.

Recently, investment banks Tigress Financial Partners and UBS both raised Walmart’s target price to $135, explicitly stating that investments in artificial intelligence are a key driver of Walmart’s future growth potential.

Traditional Retailers Switch “Tracks,” Reboard + New Leadership Anchoring Tech Retail Transformation

In the wave of AI, artificial intelligence is reshaping the shopping experience. Salesforce previously predicted that AI would drive global online sales to reach $263 billion during the 2025 holiday season, accounting for 21% of all holiday orders. This trend has prompted retail giants like Walmart to accelerate their deployment of AI shopping tools to seize new opportunities.

On December 9, 2025, Walmart officially announced its move from the New York Stock Exchange, where it had been listed for 53 years, to the Nasdaq Stock Market, known for its concentration of tech stocks. This move set a record for the largest stock exchange migration in US stock history, with a market cap of $853.1 billion, far surpassing the $166 billion market cap when PepsiCo re-listed in 2017. Analysts interpret this move as a firm commitment by traditional retail giants to transform into tech-driven companies.

At this strategic turning point, on February 1st, Walmart announced the completion of a leadership change, with John Furner becoming the new President and CEO. Furner stated that the company will accelerate the implementation of its tech retail strategy and deepen AI applications across the entire retail chain.

Walmart appears to have long anticipated the new trend of technology-driven retail, increasing investments in the tech sector in recent years. During fiscal years 2023-2025, Walmart invested over $10 billion in AI, supply chain automation, and unmanned delivery. On January 11, Google announced a partnership with Walmart to expand the shopping capabilities of Google’s “Gemini” AI model, aiming to turn chatbots into new e-commerce entry points. In October last year, Walmart also partnered with OpenAI, allowing users of the ChatGPT AI chatbot to purchase most non-perishable items on Walmart’s website through an “instant checkout” feature.

Layoffs and Pay Raises Simultaneously

While accelerating AI deployment, Amazon has announced staggering layoffs in recent years. By the end of October 2025, Amazon announced plans to cut approximately 14,000 employees to streamline operations and accelerate AI deployment. Just three months later, on January 29th, Beijing time, the company announced it would cut another 16,000 employees to stay competitive in the increasingly fierce AI arms race. These two rounds of layoffs account for about 9% of its total workforce. Since 2022, Amazon has cut over 27,000 jobs in total.

Beth Galletti, Amazon’s Senior Vice President of People Experience and Technology, previously stated in a letter to employees that AI is the most transformative technology since the birth of the internet, enabling companies to innovate at unprecedented speeds. The layoffs aim to reallocate resources to priority areas to make the company “stronger.” Amazon plans to continue implementing flat organizational structures in 2026 to improve efficiency while expanding recruitment in key strategic areas.

Interestingly, while laying off staff, Walmart announced on January 28th that it would promote 3,000 pharmacy technicians to operational team leaders, with potential hourly wages rising from $22 to $40.50. The company said this move aims to expand digital and pharmacy delivery services.

Additionally, amid a major overhaul of its management team, a filing with the U.S. Securities and Exchange Commission revealed important details about the departure agreement of international director Kathryn McLay. McLay left on January 31st and will officially leave the company by April 30th, with a salary of up to $2.82 million over two years.

Technological Transformation Shows Results, Steady Performance Growth

With ongoing AI investments, Walmart’s tech transformation is beginning to show results. In the supply chain segment, over 60% of goods are now handled by automated facilities at distribution centers, with 90% of restocking orders automated, inventory turnover days reduced to 30 days—half the industry average. The AI-powered “instant checkout” feature has increased product conversion rates by 22%.

On November 20, 2025, Walmart released its fiscal year 2026 third-quarter earnings report, with both performance and guidance exceeding expectations. Data shows that the company’s Q3 revenue was $179.5 billion, up 5.8% year-over-year; net profit increased to $6.14 billion, compared to $4.58 billion in the same period last year. E-commerce was a growth highlight, with global online sales up 27%. Meanwhile, Walmart raised its profit forecast for fiscal year 2026, expecting full-year net sales to grow by 4.8%–5.1%, higher than the previous estimate of 3.75%–4.75%.

Walmart CFO John David Rainey said that while there is real pressure from higher tariffs, the Walmart team has been able to find ways to absorb some of the costs to reduce the impact on customers.

Nevertheless, as a retail giant attracting shoppers across all income levels, Walmart is seen as an important indicator of US consumer health and how tariffs under Trump’s administration might influence consumer prices. Like other retailers, Walmart has indicated it will raise prices on some items to offset higher costs caused by tariffs.

On February 19th, Walmart will face a key test when it releases its fiscal year 2026 fourth-quarter earnings, marking the first major assessment since the leadership reshuffle, drawing significant investor attention.