Walmart Inc. reported fiscal fourth‑quarter results that included revenue of $190.7 billion, up 5.6% year‑over‑year, and an adjusted earnings per share of $0.74, beating the consensus estimate of $0.73 by $0.01. Operating income rose 10.8% to $8.7 billion, a figure that reflects the company’s stronger profitability across its U.S., Sam’s Club, and international segments. Global e‑commerce sales grew 24% and advertising revenue surged 37%, underscoring the continued expansion of Walmart’s high‑margin ecosystem streams.
The company’s gross margin rate improved by 13 basis points to 24.0%, driven by a better business mix and higher contribution from membership and advertising fees. Operating income growth outpaced revenue growth, indicating that Walmart is leveraging scale and cost discipline to enhance profitability. The margin expansion is supported by higher sales in the U.S. segment and a shift toward higher‑margin e‑commerce and advertising products.
Segment‑level performance shows that U.S. sales contributed the largest share of revenue, while Sam’s Club and Walmart International added incremental growth. E‑commerce now accounts for 23% of total net sales, and advertising revenue growth of 37% highlights the company’s success in monetizing its digital platform. These high‑margin segments offset modest headwinds in legacy brick‑and‑mortar sales, allowing overall profitability to improve.
For fiscal 2027, Walmart guided adjusted EPS of $2.75 to $2.85, below the consensus range of $2.96, and net sales growth of 3.5% to 4.5%, short of the 5% analysts expected. Management cited ongoing tariff pressures, higher operating expenses, and a 300‑basis‑point headwind from increased casualty claims as key factors tempering future growth. The guidance signals caution amid macro‑economic uncertainty while maintaining confidence in the company’s long‑term strategy.
Management emphasized the momentum in digital and high‑margin segments. CFO John David Rainey noted that “top‑line performance reflected strong sales and favorable general merchandise trends, and we demonstrated the strength and resilience of our business model by managing inventory levels and costs while growing e‑commerce across segments.” CEO Doug McMillon added that “the pace of change in retail is accelerating, and our financial results show that we’re not only embracing this change, we’re leading it.”
Investors reacted cautiously, with some analysts noting the conservative guidance despite the earnings beat. The strong performance in e‑commerce and advertising, combined with the company’s ability to control costs, provides a solid foundation for future growth, but the headwinds highlighted by management suggest that the company will need to navigate macro‑economic challenges to sustain momentum.
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