Walmart reported fourth-quarter results that narrowly topped Wall Street expectations, driven by continued strength in e-commerce and steady gains among higher-income shoppers, while issuing a cautious outlook for the year ahead.
For its current fiscal year, Walmart expects net sales growth of 3.5% to 4.5%, with adjusted earnings per share of $2.75 to $2.85. Analysts had projected $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.
CEO John Furner, who assumed the role on Feb. 1, told analysts the retailer continued to gain share among households earning more than $100,000 annually. Sales were strong across all segments, including general merchandise, which posted low single-digit growth at Walmart U.S. and increased globally.
“Fashion was a bright spot for us both in-store and online,” Furner said.
Earlier this month, Walmart became the first brick-and-mortar retailer to surpass a $1 trillion market capitalization. The company remains roughly $5 billion above that threshold.
Net income declined to $4.24 billion, or $0.53 per share, compared with $5.25 billion, or $0.65 per share, a year earlier. Adjusted earnings totaled $0.74 per share, edging past analysts’ estimate of $0.73.
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Revenue rose 5.6% to $190.66 billion, ahead of the $190.43 billion analysts had expected.
Comparable sales increased 4.6% at Walmart U.S. (excluding fuel) and 7.5% at Walmart International. At Sam’s Club, comparable sales rose 4% excluding fuel.
The results follow a recent report from Dunnhumby showing Walmart’s grocery penetration reached a record 72%.
U.S. e-commerce sales jumped 27%, marking the eighth consecutive quarter of growth above 20%. Globally, e-commerce revenue climbed 24%. Growth was fueled by store-fulfilled pickup and delivery as well as Walmart’s third-party marketplace. Online sales accounted for 23% of domestic revenue — a record high.
Walmart’s global advertising business grew 37% in the quarter, with U.S. Walmart Connect revenue rising 41%.
“Our results in Q4 FY26 illustrate the underlying strength of our business,” the company said in its earnings release, the first under Furner’s leadership.
“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 fiscal year, Walmart reported revenue of $713.2 billion, up 4.7% year over year. Adjusted earnings per share came in at $2.64, one cent above expectations.
Separately, the board approved an annual cash dividend of $0.99 per share for fiscal 2027, a 5% increase from $0.94 last year and the retailer’s 53rd consecutive year of dividend increases.
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