Walmart $WMT -2.50% Inc. WMT is increasingly positioning technology, automation and AI at the center of its operating model as it looks to improve efficiency across fulfillment, inventory management and customer engagement. The company’s fourth-quarter fiscal 2026 update showed these investments contributing to broader efforts aimed at growing operating income faster than sales, particularly as digital operations continue scaling globally.

A major focus area remains supply-chain automation. Nearly 50% of Walmart’s e-commerce fulfillment center volume is now automated, while about 60% of stores receive some level of automated freight. In addition, 23 of the company’s 42 regional distribution centers are in different stages of automation retrofit. These initiatives are helping improve inventory visibility, product flow and labor productivity across the network.

The company’s inventory performance reflected some of those efficiencies. Global inventory increased 2.6% in constant currency at the end of fiscal 2026, roughly half the pace of full-year sales growth. Walmart also noted that inventory and labor remain its two largest cost areas, making automation-led productivity improvements increasingly important to the economics of its omnichannel model.