Walmart Inc. posted fourth-quarter results with strong growth in revenue and operating income. Globally, e-commerce grew 16 percent with penetration up across all segments. Walmart U.S. comp sales up 4.6 percent with positive growth in general merchandise.

Looking ahead, the company issued guidance for fiscal 2026 with net sales expected to grow 3 percent to 4 percent and adjusted operating income in constant-currency (cc) terms to grow 3.5 percent to 5.5 percent, including a headwind of 150 basis points from the acquisition of Vizio Holding Corp. and lapping leap year.

Walmart U.S.
Broad-based sales momentum across merchandise categories; strong seasonal sales despite compressed holiday shopping season; expedited delivery channels resonating with customers desiring speed of delivery.

  • Comp sales growth led by transaction counts and unit volumes; share gains primarily from upper-income households.
  • E-commerce sales up 20 percent reflects strength in store-fulfilled pickup & delivery, advertising and marketplace.
  • Walmart Connect advertising sales increased 24 percent aided by 50 percent growth in marketplace seller advertiser counts.
  • Gross profit rate increased 51 basis points; membership income up double-digits; operating expense deleveraged 53 basis points.
  • Inventory increased 3.0 percent on 5.0 percent sales growth while maintaining healthy in-stock levels.

Walmart International
Growth in net sales (cc) led by China, Walmex, and Canada; transaction counts & unit volumes up across markets.

  • Timing of Flipkart’s The Big Billion Days (“BBD”) event affected growth in Q4 with corresponding benefit in Q3.
  • E-commerce sales grew 4 percent and advertising business grew 10 percent; both affected by the timing of Flipkart’s BBD.
  • Other than Flipkart, strong growth in eCommerce sales and increased penetration in all markets.
  • E-commerce sales grew 20 percent and advertising business grew 26 percent in the second half; both similar to growth in the first half.
  • Operating income (cc) growth was driven by improved eCommerce economics and benefited from business mix changes.
  • Currency rate fluctuations negatively affected sales by $2.0 billion and operating income by $0.2 billion.

Sam’s Club U.S.
Sam’s Club U.S. saw strong sales growth across club and digital channels, led by food and health & wellness categories.

  • Comp sales growth primarily driven by transaction counts and unit volumes.
  • E-commerce sales up 24 percent, led by club-fulfilled pickup and delivery.
  • Share gains in grocery and general merchandise categories, including apparel and consumer electronics.
  • Strong growth in membership income, up 13 percent year-over-year.
  • Operating income was impacted by previously announced associate wage investments and higher incentive pay; includes a ~730 basis-point headwind due to lapping LIFO benefit last year.

Fourth Quarter Highlights

  • Revenue of $180.6 billion, up 4.1 percent, or 5.3 percent (cc), year-over-year
  • Gross margin rate up 53 basis points, led by Walmart U.S.
  • Operating income up $0.6 billion, or 8.3 percent, adjusted up 9.4 percent (cc) due to higher gross margins and growth in membership income; also benefited from improved economics in eCommerce
  • Global eCommerce sales grew 16 percent, led by store fulfilled pickup & delivery and U.S. marketplace; growth negatively affected by timing of Flipkart’s Big Billion Days sales event.
  • Global advertising business grew 29 percent, including 24 percent for Walmart Connect in the U.S.
  • Adjusted EPS of 66 cents per share excludes the effect, net of tax, from a net loss of 2 cents on equity and other investments as well as 1 cent from the proceeds of an opioid-related legal settlement.
  • Completed acquisition of Vizio.

Full Year Highlights

  • Revenue of $681.0 billion, up 5.1 percent, or 5.6 percent (cc), year-over-year.
  • Global advertising business grew 27 percent to reach $4.4 billion.
  • Operating income up $2.3 billion, or 8.6 percent; Adjusted operating income up 9.7 percent (cc), growing faster than sales.
  • ROA at 7.9 percent; ROI at 15.5 percent, up 50 basis points.
  • Global inventory up 2.8 percent, including an increase of 3.0 percent for Walmart U.S.; in-stock levels healthy.
  • Company raises dividend 13 percent to 94 cents per share; largest increase in over a decade.

Balance Sheet and Liquidity
Walmart ended the fiscal year with cash and cash equivalents of $9.0 billion.

  • Total debt of $45.8 billion at year-end.
  • Operating cash flow for FY25 of $36.4 billion, an increase of $0.7 billion.
  • Free cash flow of $12.7 billion, a decrease of $2.5 billion
  • Repurchased 61.9 million shares in FY25, or $4.5 billion
  • Inventory of $56.4 billion at year-end, an increase of $1.5 billion, or 2.8 percent, year-over-year.

Image courtesy Walmart