Strong Holiday Quarter Lifts Results
Walmart reported fiscal fourth-quarter results that exceeded Wall Street expectations, driven by continued strength in e-commerce, advertising and its third-party marketplace.
For the quarter ended Jan. 31, the retailer posted adjusted earnings per share of 74 cents, above analysts’ expectations of 73 cents, according to LSEG. Revenue reached $190.66 billion, also topping forecasts of $190.43 billion. Holiday-quarter sales rose nearly 6% year over year.
Comparable sales increased 4.6% for Walmart U.S. and 4% for Sam’s Club, excluding fuel. U.S. e-commerce sales surged 27%, marking the 15th consecutive quarter of double-digit digital growth, while global e-commerce rose 24%.
Online sales accounted for a record 23% of Walmart’s U.S. revenue. Growth included roughly 50% higher store-fulfilled delivery volumes and a 41% increase in Walmart Connect advertising sales.
Full-Year Guidance Falls Short
Despite the strong quarter, Walmart’s guidance for the current fiscal year disappointed investors. The company expects net sales to rise between 3.5% and 4.5%, with adjusted earnings per share projected at $2.75 to $2.85. That falls below Wall Street expectations of $2.96 per share.
Net income declined to $4.24 billion, or 53 cents per share, compared with $5.25 billion, or 65 cents per share, a year earlier. After excluding one-time items, adjusted earnings reached 74 cents per share.
Shares edged higher Thursday afternoon. Over the past 12 months, Walmart stock has climbed about 22%, outperforming the S&P 500’s 12% gain.
Higher-Income Shoppers Drive Gains
Chief Financial Officer John David Rainey told CNBC that faster deliveries from stores are helping Walmart gain market share, particularly among higher-income households.
He noted that fashion grew at a mid-single-digit rate in the fourth quarter, with nearly all growth coming from households earning more than $100,000 annually. However, Walmart continues to see spending pressure among lower-income consumers, reflecting what economists describe as a “K-shaped economy.”
Inflation at Walmart’s U.S. business was just above 1% in the fourth quarter, with food inflation slightly lower and general merchandise somewhat higher. Rainey said price increases tied to inflation and tariffs appear to be normalizing.
Strategic Shift and Industry Turning Point
The results also highlight a changing retail landscape. For the first time, Amazon surpassed Walmart in annual revenue, reporting $716.9 billion compared with Walmart’s $713.2 billion. While Amazon benefits from cloud and tech service revenues, the milestone underscores rising competition.
Walmart continues to diversify beyond traditional retail, emphasizing higher-margin businesses such as advertising and its marketplace. Investors expect new CEO John Furner, who took over Feb. 1, to maintain that focus.
The company also announced a $30 billion share repurchase authorization, replacing its prior $20 billion buyback program.
