Walmart Q4 Results Top Estimates, But Provides Weak Outlook

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(RTTNews) - Retail giant Walmart, Inc. (WMT) reported Thursday a profit for the fourth quarter that declined 4.4 percent from last year, but adjusted earnings grew from last year, reflecting improved gross margins and revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. However, the retailer provided weak outlook for the first quarter and for the full-year 2025.

Shares of the retailer are down $8.55 or 8.22 percent to $95.45 in pre-market trading on the NYSE.

"Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times. We're gaining market share, our top line is healthy, and we're in great shape with inventory," said Doug McMillon, President and CEO.

For the fourth quarter, consolidated net income attributable to Walmart for the quarter was $5.25 billion or $0.65 per share, down 4.4 percent from $5.49 million or $0.68 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.66 per share, compared to $0.60 per share in the year-ago quarter.

On average, 34 analysts polled expected the company to report earnings of $0.65 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter, comprising net sales and membership and other income, grew 4.1 percent to $180.55 billion from $173.39 billion in the same quarter last year. Analysts were looking for revenues of $179.00 billion for the quarter.

Revenues increased 5.3 percent to $182.62 billion in constant currency.

Global eCommerce sales grew 16 percent, led by storefulfilled pickup & delivery and U.S. marketplace, while being 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.

Net sales grew 4.0 percent to $178.83 billion, and Membership and other income increased 17.0 percent to $1.72 billion from last year. Consolidated U.S. comp sales, without fuel, increased 4.9 percent.

Walmart U.S. comp sales, without fuel, increased 4.6 percent and net sales rose 5.0 percent to $123.5 billion. Walmart U.S. eCommerce sales grew 20 percent and Walmart Connect advertising sales grew 24 percent.

Sam's Club comp sales, without fuel, increased 6.8 percent and net sales also grew 5.7 percent to $23.1 billion from last year. Membership income increased 13 percent. eCommerce sales were up 24 percent.

Net sales at Walmart International edged down 0.7 percent to $32.2 billion, with strength in Walmex, Canada and China. Net sales also increased 5.7 percent to $34.3 billion in constant currency. eCommerce sales increased 4 percent and Advertising business grew 10 percent.

Consolidated gross margin rate was up 53 basis points, reflecting improvements across segments, led by Walmart U.S.

Looking ahead to the first quarter, the company now expects adjusted earnings in a range of $0.57 to $0.58 per share on consolidated constant currency net sales growth of 3 to 4 percent.

Analysts expect the company to report earnings of $0.65 per share on a revenue growth of 3.86 percent to $166.12 billion for the quarter.

For fiscal 2026, the company now projects adjusted earnings in a range of $2.50 to $2.60 per share on consolidated constant currency net sales growth of about 3.0 to 4.0 percent.

The Street is looking for earnings of $2.76 per share on a revenue growth of 4.19 percent to $705.14 billion for the year.

Separately, the Board of Directors of Walmart approved a 13 percent higher annual cash dividend for fiscal year 2026 of $0.94 per share to be paid in four quarterly installments of $0.235 per share.

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