Walmart (WMT) had a strong quarter. Many shoppers, tired of high prices, looked for good deals. The company shared its results on Thursday before the market opened. Its revenue and profit per share were higher than Wall Street expected.
Walmart’s revenue grew by 5.3% to $182.6 billion. Its profit per share went up by 10% to $0.66. Even though these numbers were strong, the wmt stock price fell by 5% in premarket trading because investors were not happy with Walmart’s plans for the future.
Before these earnings came out, Walmart’s shares had climbed more than 75% over the past year. In comparison, the S&P 500 grew by 23% and rival Target’s shares dropped by 13%.
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Growing Stores and Online Sales
Walmart US same-store sales grew by 4.6% in the quarter. This happened because more shoppers—including those with higher incomes—came for good deals and easy shopping. Online sales in the US jumped 20% from last year. This boost came from in-store pickup, delivery, and a strong online marketplace. Good holiday sales also helped.
CEO Doug McMillon said,
“Our business is strong because of our low prices, many choices, and fast online delivery. We are getting more customers, our sales are healthy, and we have plenty of stock.”
The Walmart+ subscription service grew by double digits, and income from memberships and other sources increased by 33%.
Grocery and Other Sales
Walmart’s US grocery business makes up 60% of total sales. Grocery sales in the same stores grew a bit, helped by more visitors and online shopping. Items like toys, home decor, and clothes also grew a little, even though they had been slow in recent years.
For the full year, Walmart beat Wall Street’s expectations. Net sales increased by 5.6% to $684.2 billion.
Deutsche Bank analyst Krisztina Katai explained,
“Investors will care more about the future than this quarter. They will look past our early, cautious forecast for the year.”
For fiscal year 2026, Walmart gave a careful forecast. They expect net sales to grow between 3% and 4%.
CFO John David Rainey added,
“We have been working in a fast-changing world for many years, and we expect this year to be similar. We think the big picture will be steady, but there are still some unknowns about how people shop and world events.”
Earnings Breakdown
Fourth Quarter Results vs. Estimates:
- Revenue: $182.6 billion (estimate: $180.21 billion)
- Adjusted Earnings per Share: $0.66 (estimate: $0.65)
- Walmart US Same-Store Sales Growth: 4.6% (estimate: 4.36%)
- Foot Traffic Growth: 2.8% (estimate: 2.67%)
- Ticket Growth: 1.8% (estimate: 1.96%)
- E-commerce Sales Growth: 2.9% (estimate: 2.88%)
- Sam’s Club US Same-Store Sales Growth: 6.8% (estimate: 4.99%)
Fiscal Year 2025 Results vs. Estimates:
- Revenue: $684.2 billion (estimate: $680.70 billion)
- Adjusted Earnings per Share: $2.51 (estimate: $2.49)
- Walmart US Same-Store Sales Growth: 4.5% (estimate: 4.62%)
- Sam’s Club US Same-Store Sales Growth: 5.9% (estimate: 5.35%)