Good morning. Walmart, the largest retailer in the world by revenue, is heavily investing in AI and is determined to attract top talent to support its efforts.
On Thursday, Walmart reported earnings for the quarter ending July 31. E-commerce continues to gain momentum, marking another quarter of double-digit growth: global online sales rose 25%, while U.S. online sales increased 26% year over year, driven by increased digital purchases and advertising revenues.
CFO John David Rainey highlighted continued investment in AI as a cornerstone of Walmart’s long-term growth strategy. “We’re playing for the long term, balancing the pursuit of share gains while investing in our associates, our supply chain automation in stores and clubs, and in AI and technology,” Rainey said during the earnings call.
Regarding Walmart’s focus on technology and hiring for high-tech positions, Rainey told me via email, “As we become more tech-driven, these teams help us build better shopping experiences, smarter supply chains, and innovative solutions that keep us ahead.”
He also explained why Walmart is an attractive destination for tech professionals: “Walmart stands out for tech talent because you get to work on projects that impact millions of people, use the latest technology, and grow your career. Plus, your work here really matters—you’re helping shape the future of retail on a massive scale.”
A recent Fortune analysis of Walmart job postings revealed that salaries for experienced software engineers, data scientists, and IT product managers are highly competitive, with some starting in the six figures. For example, staff software engineers can expect a salary range of $132,000 to $264,000, while staff data scientists are offered between $143,000 and $286,000. Specific compensation packages, including bonuses and stock awards, will vary by role and candidate experience.
In July, Walmart revealed its vision to revamp shopping, operations, and vendor management through AI agents, Fortune reported. The company plans to transform customer experiences on its digital platforms, streamline work for corporate and store employees, and help vendors and sellers better track merchandise performance by consolidating dozens of AI tools into four comprehensive “super agents.”
Navigating uncertainty
Digital capability is increasingly recognized as a key differentiator for Walmart. “Despite consumers’ financial constraints, Walmart posted solid top-line marks, illustrating the benefits of its scale, attractive price positions, and convenient digital shopping options, which stand to yield further market share gains,” wrote Erin Lash, sector director at Morningstar, in an analyst note on Thursday.
For the quarter ending July 31, Walmart reported revenue of $177.4 billion, up 4.8% year over year. U.S. store sales rose 4.6% (beating expectations), driven by a 1.5% increase in transactions and a 3.1% rise in average ticket. Gross margin edged up by 4 basis points to 24.5%. However, profit slightly missed expectations, due to factors such as the company choosing to absorb tariff costs on some items and incurring restructuring expenses.
Although tariffs raised costs for some products, Walmart reported notable strength in discretionary categories—such as apparel, media, gaming, and automotive—with general merchandise sales increasing by low single digits.
Reflecting its positive outlook, Walmart management raised its fiscal 2026 guidance, now projecting sales growth of 3.75% to 4.75%, up from its previous forecast of 3% to 4%.
As Walmart doubles down on digital innovation, its ability to attract and empower top tech talent will be key to shaping the company’s future.
Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
