Retail Giant Beats Estimates Amid Tech-Driven Evolution

The fourth-quarter earnings season is winding down, but that doesn’t mean this week was lacking in headlines. Retail giant Walmart was front and center with another solid earnings announcement.

Walmart reported its fiscal fourth-quarter results this morning, capping a strong year with beats on both revenue and earnings amid resilient consumer demand and omnichannel execution.

The company delivered total revenues of $190.7 billion, up 5.6% year-over-year (4.9% in constant currency), exceeding the Zacks Consensus Estimate of $190.05 billion. Adjusted earnings per share reached $0.74, edging by expectations of $0.73 and reflecting a 12.1% increase from the prior-year quarter.

The results come amid Walmart’s broader AI push, including investments in supply chain optimization, predictive analytics, and personalized shopping tools, positioning the retailer more like a tech-enabled company rather than a traditional brick-and-mortar giant.

Digger Deeper into Walmart’s Release

This marks Walmart's second consecutive earnings beat, resuming its long history of outperformance with the U.S. segment leading through value pricing and convenience, while international markets contributed via Flipkart and Walmex.

Comparable sales growth remained solid, with Walmart U.S. comps rising 4.6% (ex-fuel), driven by a 2.6% increase in transactions and a 2% uptick in average ticket. Global e-commerce sales surged 24%, fueled by store-fulfilled orders, marketplace expansions, and global advertising growth of 37% (including VIZIO). Membership trends were a highlight with global membership fee revenue up 15.1%.

Walmart announced a new $30 billion share repurchase authorization program, further enhancing its goal of delivering shareholder value. The quarter also included a 5% dividend increase to $0.99 per share annually, marking the 53rd consecutive year of raises.

“Dividends continue to be a part of our diversified capital returns approach. We're proud to be increasing our annual dividend for the 53rd consecutive year. This decision is a proof point of our continued confidence in our business performance and forward momentum,” said John David Rainey, executive vice president and chief financial officer at Walmart.

Guidance updates provided optimism, with Q1 FY27 net sales projected up 3.5-4.5% and operating income up 4-6%, while full-year FY27 also calls for total net sales growth of 3.5-4.5% and adjusted operating income expansion of 6-8%—both raised from prior ranges. This reflects confidence in holiday momentum carrying forward, with e-commerce expected to grow in the mid-20% range and international segments contributing meaningfully.

These results underscore Walmart’s leading retail position, with its digital and membership momentum providing a competitive edge in a price-sensitive environment. The company’s approach prioritizes unmatched value combined with enhanced convenience, including accelerated same-day pickup and faster delivery.

Walmart’s Stock Performance

Walmart WMT experienced a minor dip in early trading on Thursday, but recovered by mid-day with shares trading back in positive territory. Today’s move appears more related to general market conditions, pointing to high expectations rather than underlying issues, and could present an entry point for long-term holders.

Image Source: StockCharts

The stock has been widely outperforming this year, up more than 13% while the broader market shows signs of rotation. Walmart is currently a Zacks Rank #3 (Hold), reflecting balanced expectations following the stock’s recent strength.

For the broader retail industry, Walmart's performance underscores a narrative of resilience, where omnichannel leaders thrive through convenience and affordability. Investments in AI for inventory management and personalization should further enhance efficiency, positioning Walmart to gain share from peers like Target in discretionary categories.

Bottom Line

The quarterly results bode well for Walmart moving forward, signaling its adaptability in a tiered consumer spending landscape where value-seeking persists across income levels. The emphasis on memberships and advertising—now multi-billion-dollar businesses—creates high-margin recurrence, buffering against potential tariff impacts or economic softness.

While discretionary weakness lingers, strength in essentials and e-commerce suggests a gradual consumer rebound, potentially lifting the sector if macro conditions stabilize. This could encourage competitors to accelerate digital investments and loyalty programs, fostering innovation across retail amid supply chain challenges and shifting preferences.

Overall, Walmart's report affirms its role as a retail bellwether, navigating uncertainties with steady execution.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com