Walmart reports strong Q4 as e-commerce surges; fashion a 'bright spot'
Walmart reported fourth-quarter earnings and revenue that came in just ahead of analysts' estimates amid big e-commerce gains and as it continues to attract higher-income customers.
The retail giant provided a cautious outlook that was below Street estimates. For its current fiscal year, Walmart expects net sales to increase 3.5% to 4.5%, with adjusted earnings ranging from $2.75 to $2.85 per share. Analysts were looking for adjusted earnings of $2.96 per share.
"Our goal is to outperform this guidance, but we believe it's prudent to start the year with a level of conservatism given the backdrop is still somewhat unstable,” CFO John David Rainey said on the earnings call.
On the call, CEO John Furner, who took the reins of Walmart on Feb. 1, said that the retailer continued to gain share from share from households making more than $100,000. He also told analysts that sales were strong across each segment of the business, including sales of general merchandise, which grew on a global basis and was up low-single digits for Walmart U.S.
“Fashion was a bright spot for us both in-store and online," Furner said.
[READ MORE: New CEOs take reins at Walmart and Target facing much different scenarios]
Earlier this month, Walmart became the first physical retailer to cross the $1 trillion market capitalization threshold. It is still $5 billion over that mark.
Fourth Quarter
Walmart’s net income fell to $4.24 billion, or $0.53 per share, compared to $5.25 billion, or $0.65 per share, in the quarter ended Jan. 31. Adjusted earnings pre share totaled were $0.74, just ahead of analysts estimates of $0.73 per share.
Revenue increased 5.6% to $190.66 billion. Analysts has expected revenue of $190.43 billion. Comparable sales at Walmart’s U.S. rose 4.6% (excluding fuel), and were up 7.5% at Walmart International. Comp sales rose 4% at Sam’s Club (excluding fuel).
Walmart released its results the day after a report from Dunnhumby found that Walmart’s grocery penetration has reached a record-breaking 72%.
E-commerce sales in the U.S. jumped 27%, marking the eight consecutive quarter of e-commerce growth above 20%. Global e-commerce sales surged 24%. E-commerce sales were led by store-fulfilled pickup and delivery, and the company’s third-party marketplace. E-commerce accounted for 23% of Walmart’s domestic sales, a record high for the chain.
Revenue from Walmart’s global advertising business rose 37%. In the U.S., Walmart Connect revenue increased 41%.
“Our results in Q4 FY26 illustrate the underlying strength of our business,” the company said in its earnings release, the first released under Furner. “We continue to balance our ongoing investments with improved, tech-powered experiences for customers, members, and associates that we expect to expand margins and increase returns for shareholders in the years ahead.”
For the full year, Walmart reported revenue of $713.2 billion, up 4.7% from the previous year. Adjusted earnings per share were $2.64, a cent higher than analysts expected.
In separate news, Walmart approved an annual cash dividend for fiscal year 2027 of $0.99 per share, which represents a 5% increase from the $0.94 per share paid for the last fiscal year and marking the 53rd consecutive year of dividend increases.
