Walmart Q4 Earnings Shine, But Soft FY26 Outlook Disappoints Street

Shares of retail giant Walmart Inc WMT are trading lower in premarket on Thursday.

The company reported fourth-quarter FY25 sales growth of 4.1% year-on-year to $180.55 billion, beating the analyst consensus estimate of $180.01 billion.

The retailer reported that in the fourth quarter of 2025, adjusted EPS was 66 cents, beating the consensus estimate of 64 cents.

The gross margin rate was up 53 basis points, led by Walmart U.S. Operating income increased $0.6 billion, or 8.3%, and adjusted operating income was up 9.4% due to higher gross margins and growth in membership income.

Global eCommerce sales grew 16%, led by store fulfilled pickup & delivery and U.S. marketplace.

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Global advertising business improved 29%, including 24% for Walmart Connect in the U.S.

Same-store sales for Walmart U.S. climbed by 4.6%, excluding fuel, driven by growth in transactions and unit volumes. At Sam’s Club, same-store sales rose 6.8%, excluding fuel.

Walmart generated an operating cash flow of $36.4 billion and a free cash flow of $12.7 billion in fiscal year 2025. It ended the quarter with cash and equivalents of $9 billion.

“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 President and CEO Doug McMillon.

Walmart Board also approved an annual cash dividend for fiscal year 2026 of $0.94 per share, representing a 13% increase from the $0.83 per share paid for the last fiscal year.

The fiscal year 2026 annual dividend of $0.94 per share will be paid in four quarterly installments of $0.235 per share.

Guidance: Walmart sees first-quarter FY26 sales growth of 3% – 4% in CC and adjusted EPS of $0.57 – $0.58 against an estimate of $0.64.

For FY26 Walmart expects sales to grow 3% – 4% in CC and an adjusted EPS of $2.50 – $2.60, below the $2.76 estimate.

Price Action: WMT shares are trading lower by 7.84% at $95.85 in premarket at last check Thursday.

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