In recent years, the digital economy has become a new engine driving the high-quality development of China’s economy and society, as well as a new kinetic energy for realizing common prosperity. As a micro-convergence of digital technology and production development, corporate digital transformation has become an important focus for improving internal income distribution. However, academic research on the impact of digital transformation on corporate income distribution is still being explored, and especially research focusing on how digital transformation affects internal pay gaps remains to be added. Based on this, this paper selected 1,603 A-share listed companies from 2011 to 2021 as samples, used data mainly from the CSMAR database, and drew references from the research of scholars Wu Fei et al. (2021). And, text analysis was used to extract digital feature words related to “artificial intelligence, big data, cloud computing, blockchain, and application of digital technology” from the annual report information disclosed by the sample companies, construct corporate digital transformation indicators, and empirically test the impact of digital transformation on internal income distribution at the corporate micro level. The results show that digital transformation can significantly increase the share of corporate revenue and labor income, and its impact paths are the output growth effect and structural optimization effect, respectively. Meanwhile, digital transformation leads to a widening of the internal pay gap, the mechanism of which is that digital transformation has a risk-exacerbating effect, increasing the corporate risk-taken level, which leads to an increase in the power of management, thus widening the pay gap between management and other employees. The conclusion still holds after a series of robustness tests. In addition, there are differences in the impact of digital transformation on corporate revenue distribution with different corporate attributes. Finally, analysis of the quantile regression model reveals that the deeper the degree of digital transformation, the more it increases the share of corporate revenue and labor income, and that the effect on the widening of the internal pay gap gradually diminishes and rationalizes. Compared with previous literature, the marginal contributions of this paper are as follows. First, it expands the relevant research on the impact of digital transformation on corporate income distribution. In this paper, corporate income, labor income, and internal pay gap are included in the unified analysis framework of corporate income distribution pattern, and the economic consequences of corporate digital transformation are analyzed in multiple dimensions. Secondly, to a certain extent, it reveals and clarifies the mechanism of the impact of digital transformation on corporate income distribution and contributes new empirical evidence to the process of enabling corporate labor distribution through digital transformation. Finally, the quantile regression model is used to observe the heterogeneity of corporate digital transformation degree on internal income distribution from a more detailed level. This paper reveals the logical correlation between digital transformation and corporate income distribution to a certain extent, which is helpful for enterprises to implement digital transformation strategies according to local conditions, and is of great significance for improving the income distribution system and exploring the governance mechanism of internal pay gap. At the same time, it is also helpful for government departments to formulate targeted digitalization policies and measures, give reasonable play to their guiding, encouraging and supervising roles, and continuously promote enterprises to build a fairer and more reasonable internal income distribution mechanism to achieve high-quality development.