Walmart bets on AI and its people as it looks toward the next era of retail

BENTONVILLE, Ark. — At Walmart's 56th annual shareholders meeting Wednesday, company leaders delivered a confident message to investors: the world's largest retailer is entering its next chapter armed with artificial intelligence, a $715.9 billion revenue base, and the same people-first culture that has defined the company since Sam Walton opened its first store.

Board Chair Greg Penner opened the meeting by acknowledging what he called a "dynamic environment" that Walmart's 2.1 million associates navigated with strong execution. But his remarks quickly turned forward-looking. "Every transformation has been in service of the company's purpose: helping people save money and live better," Penner said. "That purpose guides our decisions and anchors us through change."

Penner also marked a significant leadership transition, thanking outgoing CEO Doug McMillon for guiding Walmart "through periods of significant change while staying grounded in our values and culture," and expressing confidence in the new management team under President and CEO John Furner to lead "in an era of retail that's defined by AI and innovation."

A Strong Year — and a Changing Business Mix

Furner, who has spent 33 years at Walmart — starting, he noted, in the garden center — used his first shareholders meeting address as CEO to underscore the company's financial momentum. Revenue grew 5.1 percent in constant currency, driven by 24 percent global eCommerce growth to more than $150 billion. Operating cash flow reached $41.6 billion, and the company returned $15.6 billion to shareholders through dividends and buybacks.

Perhaps more telling of where Walmart is headed, advertising revenue surged 46 percent globally to nearly $6.4 billion, and membership fee revenue exceeded $4.3 billion — signs that the company's business model is shifting meaningfully beyond low-margin merchandise sales.

"We are growing profits even faster than sales," Furner said. "Our business model is strong, and getting stronger."

The Tech Bet: AI from the Store Floor to the Smartphone

Furner positioned artificial intelligence not as a future ambition but as a present-day competitive advantage. Walmart's AI-powered personal shopping agent, Sparky, is already helping customers navigate the retailer's vast catalog, promising a shopping experience that is "high-speed, convenient, and personalized."

On the operations side, Furner said AI-equipped associates are "delivering faster and more accurately than ever all around the world." Last year, Walmart's U.S. team delivered nearly 9 billion units same or next day — a figure Furner cited as evidence that the company's stores, supply chain, and digital capabilities are working as a unified system rather than separate channels.

"We serve customers and members 280 million times per week," Furner said. "Our stores, clubs, supply chain, and digital capabilities work seamlessly to serve customers and members wherever and whenever they want to shop."

The company is also investing in expanding its marketplace and advertising platforms across North America, which Furner said both improve the relevance of what customers find and generate better returns for shareholders.

People First — Even as Technology Transforms the Business

Despite the heavy emphasis on technology, both Penner and Furner were careful to frame Walmart's identity around its workforce. Furner described the company as "people-led, tech-powered" — in that order — and backed the claim with investment figures. The average hourly wage in the U.S. now exceeds $18. Top-performing store managers earned more than $500,000 last year, and more than half of all store managers received bonuses of $100,000 or more. More than 475,000 associates participate in the company's stock purchase plan, with over 80 percent of those being hourly workers.

Furner also highlighted the company's push to help associates develop skills for the future, including AI proficiency, logistics certifications, and a path into store management. "When our people grow, our business grows," he said.

The message was pointed: Walmart is not automating its way past its workforce, but rather betting that a technologically empowered associate is its most durable competitive asset.

"What hasn't changed is that it's our people who make the difference," Furner said. "I've never been more optimistic about what we can accomplish together."