Walmart has become the first traditional retailer to achieve a $1 trillion market capitalisation, joining an exclusive group dominated by technology companies.

The Arkansas-based retail giant reached the milestone on Tuesday as its share price surpassed $126, capping a rally that has seen its stock more than double over the past two years. The company's current market capitalisation stands at approximately $1.005 trillion.

The achievement reflects investor enthusiasm for Walmart's rapidly growing e-commerce operation, which is expected to generate annual sales of around $140 billion when the company reports results this month. The online business became profitable last year for the first time as a standalone unit, a development for which Wall Street had waited years.

Walmart's transformation has been driven by substantial investments in digital capabilities and automation. The retailer can now deliver orders the same day to 95 per cent of US households, whilst automation of warehouse tasks has helped keep its global workforce stable at around 2.1 million employees even as revenues have grown.

"The change at Walmart over the past decade has been as profound a shift at a retail company that we have ever seen," Simeon Gutman, retail analyst at Morgan Stanley, told the Wall Street Journal.

Sales have surged as shoppers across income brackets have turned to Walmart for low prices and fast delivery. The company has benefited from higher earners trading down to lower-priced items, whilst its expanded range of trendy small appliances and store-brand foods has broadened its appeal.

The milestone came during Walmart's first week under chief executive John Furner, who succeeded Doug McMillon on 31 January following McMillon's 12-year tenure. Furner has been outspoken about further investments in automation and artificial intelligence.

Walmart has partnered with OpenAI and Google to integrate shopping into their search chatbots, whilst its in-house chatbot Sparky recommends products and can purchase items for customers. David Schick, managing partner of research firm Optimal Advisory, told the Financial Times that Walmart's "mix of labour, sourcing and technology" underpinned its success.

In a strategic shift reflecting its digital focus, Walmart recently moved its stock market listing from the New York Stock Exchange to the tech-heavy Nasdaq, joining the Nasdaq-100 index.

The trillion-dollar valuation remains well below Amazon's $2.6 trillion market capitalisation. However, analysts forecast Walmart's annual revenue will have topped $700 billion, though Amazon's figure is expected to surpass the retail chain's for the first time.

Walmart joins nine other US public companies valued above $1 trillion, including Nvidia, Apple, Microsoft and Amazon. Only Walmart and Berkshire Hathaway, which reached the milestone in 2024, are non-technology companies in the group.

The surging valuation significantly increases the wealth of the Walton family, whose 44 per cent aggregate stake is now worth more than $440 billion.

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