BENTONVILLE: Walmart said fourth-quarter revenue rose 5.6% from a year earlier to $190.7 billion during the holiday shopping period, while its earnings outlook for the new fiscal year came in below analysts’ expectations. The retailer reported adjusted earnings of 74 cents a share, up from 66 cents a year earlier, and said global e-commerce sales increased 24%. Walmart also said U.S. comparable sales excluding fuel rose 4.6%, reflecting gains across store and digital channels.
Walmart reported GAAP earnings of 53 cents a share, down from 65 cents a year earlier, and said consolidated net income attributable to the company fell 19.4% to $4.237 billion. Operating income rose 10.8% as the company said it grew profit faster than sales, and it reported a gross margin rate increase of 13 basis points. Walmart said its adjusted earnings excluded a 21-cent per share net loss related to equity and other investments.
In Walmart U.S., net sales rose 4.6% to $129.2 billion, and operating income increased 6.6% to $7.0 billion. The company said customer transactions rose 2.6% and average ticket increased 2.0%. U.S. e-commerce sales climbed 27%, led by store-fulfilled pickup and delivery, advertising, and the marketplace. Walmart said sales through expedited store-fulfilled delivery channels grew more than 50%, underscoring continued demand for faster fulfillment.
International and advertising growth
Walmart International reported net sales of $35.9 billion, up 11.5% on a reported basis and up 7.5% in constant currency. Operating income increased 36.0% to $1.9 billion, while the company said e-commerce sales in the international segment rose 17% in the quarter, led by store-fulfilled pickup and delivery. Walmart cited strength in China, Walmex and Flipkart, and noted that the timing of Flipkart’s Big Billion Days event affected fourth-quarter growth comparisons.
At Sam’s Club U.S., net sales rose 2.9% to $23.8 billion, while net sales excluding fuel increased 4.0% to $21.7 billion. The company said Sam’s Club e-commerce sales rose 23% and membership fee revenue increased 6.1%, reflecting growth in member counts, renewal rates, and Plus members. Walmart also reported that its global advertising business increased 37% in the quarter, including VIZIO, and said Walmart Connect in the U.S. grew 41%. Global membership fee revenue rose 15.1%.
Guidance and shareholder returns
For the first quarter of fiscal 2027, Walmart guided to net sales growth of 3.5% to 4.5% in constant currency and operating income growth of 4.0% to 6.0% in constant currency, with adjusted earnings of 63 cents to 65 cents a share. For the full fiscal year, it forecast net sales growth of 3.5% to 4.5% and adjusted operating income growth of 6.0% to 8.0%, both in constant currency, with adjusted earnings of $2.75 to $2.85 a share. Walmart said its fiscal 2027 outlook is based on fiscal 2026 net sales of $706.4 billion and adjusted earnings of $2.64 a share.
Walmart announced a new $30 billion share repurchase authorization that replaces the remaining capacity under its prior program, and said it repurchased 85.0 million shares for $8.1 billion during fiscal 2026 under the earlier authorization. The company also raised its annual dividend for fiscal 2027 to 99 cents a share, to be paid in quarterly installments of $0.2475, and said the increase marks its 53rd consecutive year of annual dividend increases. For fiscal 2026, Walmart reported revenue of $713.2 billion, operating cash flow of $41.6 billion, free cash flow of $14.9 billion, cash and cash equivalents of $10.7 billion, total debt of $51.5 billion, and inventory of $58.9 billion. – By Content Syndication Services.