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Walmart Inc. (WMT - Free Report) posted fourth-quarter fiscal 2025 results, with the top and bottom lines increasing year over year and cruising past their respective Zacks Consensus Estimate. The company experienced growth across all business segments, expanding e-commerce, increasing pickup options and accelerating delivery services. Newer ventures like the marketplace, advertising and membership have contributed to diversified profits, reinforcing the resilience of Walmart’s business model. The company also hiked its annual dividend rate.
Walmart’s adjusted earnings of 66 cents per share jumped 10% from the year-ago period’s figure of 60 cents. The metric came ahead of the Zacks Consensus Estimate of 65 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues grew 4.1% year over year to $180.6 billion, which beat the consensus mark of $180 billion. However, revenues included an adverse currency impact of $2.1 billion. On a constant-currency (cc) basis, total revenues climbed 5.3%. Revenues were backed by strength across all operating segments.
Walmart’s Global e-commerce sales surged 16% as penetration increased across all segments. The upside can be attributed to store-fulfilled pickup and delivery services, along with growth in the U.S. marketplace. However, growth was impacted by the timing of Flipkart’s Big Billion Days (BBD) sales event. The company witnessed a 16% increase in global membership income. WMT’s global advertising business advanced 29%.
The consolidated gross profit margin expanded 53 basis points (bps) to 23.9%, driven by Walmart U.S. Margin growth. The upside was backed by effective inventory management and reduced markdowns, allowing for strategic pricing to maintain competitive price gaps, along with an improved business mix. However, this was partially offset by challenges from the merchandise mix. In addition, margins were positively impacted by the timing shift of Flipkart's Big Billion Days sales event.
Operating expenses deleveraged 46 bps, mainly due to higher variable pay from surpassing planned performance, as well as rising utilities and marketing costs. In addition, expenses were impacted by costs associated with the VIZIO acquisition.
The company’s operating income increased 8.3% year over year to $7.9 billion driven by solid sales growth, a greater gross margin and higher membership income, partly negated by expense deleverage. The metric also saw benefits from improved economics in e-commerce.
Decoding Walmart’s Segmental Show
Walmart U.S.: The segment’s net sales grew 5% year over year to $123.5 billion. U.S. comp sales, excluding fuel, improved 4.6% due to transaction growth of 2.8% and an average ticket increase of 1.8%. Sales growth was backed by broad-based strength with solid seasonal performance despite a shortened holiday shopping season. WMT witnessed solid transaction counts and unit volumes, with continued share gains fueled by upper-income households. E-commerce sales in the segment rose 20%, driven by store-fulfilled pickup & delivery and growth in the marketplace as well as in the company’s Connect advertising.
As of the fiscal fourth quarter, Walmart U.S. had nearly 4,600 pickup locations and about 4,500 delivery stores. The company remodeled about 100 stores during the reported quarter. The operating income of the Walmart U.S. segment jumped 7.4% to $6.5 billion.
Walmart International: The segment’s net sales inched down 0.7% to $32.2 billion, including currency headwinds of $2 billion. On a cc basis, net sales jumped 5.7%, driven by Walmex, China and Canada. The company saw successful festive events in markets with solid general merchandise growth.
E-commerce sales went up 4% in the segment, reflecting the impact of the timing of Flipkart's BBD. The company’s membership income grew more than 20%. The operating income, on a cc basis, grew 10.1% to $1.6 billion.
Sam’s Club U.S.: The segment, which comprises membership warehouse clubs, witnessed a net sales increase of 7.1% to $23.1 billion (excluding fuel). Sam’s Club’s comp sales, excluding fuel, grew 6.8%. While transactions grew 5.4%, the average ticket climbed 1.3%. The company saw strong performance in food and health & wellness, along with share gains in grocery and general merchandise categories, including apparel and consumer electronics.
E-commerce net sales jumped 24% at Sam’s Club U.S., backed by momentum in delivery from the club, with digital penetration at an all-time high. The segment’s operating income totaled $574 million, down 7.4% year over year.
WMT Stock: Other Updates & Developments
Walmart ended the quarter with cash and cash equivalents of $9 billion and total debt of $45.8 billion.
For fiscal 2025, WMT generated an operating cash flow of $36.4 billion and a free cash flow of $12.7 billion. In fiscal 2026, capital expenditures are likely to account for nearly 3-3.5% of net sales.
During the quarter, Walmart’s share repurchases amounted to $1.4 billion, representing 15.9 million shares. The remaining share repurchase authorization stands at $12 billion.
The company announced a 13% increase in its annual dividend for fiscal 2026, raising it to 94 cents per share.
Image Source: Zacks Investment Research
What to Expect From WMT in Fiscal 2026?
For the first quarter of fiscal 2026, WMT expects consolidated net sales growth of 3-4% (at cc). The adjusted operating income is expected to increase 0.5-2% at cc in the quarter. Walmart expects quarterly adjusted EPS to be in the 57-58 cents range. The company recorded an adjusted EPS of 60 cents in the first quarter of fiscal 2025.
For fiscal 2026, WMT expects consolidated net sales growth of 3-4% (at cc). The adjusted operating income is expected to increase 3.5-5.5% at cc for the year. Net interest expenses are likely to escalate $100-$200 million. Walmart expects adjusted EPS for fiscal 2026 to be in the $2.50-$2.60 range. The company recorded an adjusted EPS of $2.51 in fiscal 2025.
Shares of this Zacks Rank #3 (Hold) company have gained 17.7% in the past three months compared with the industry’s growth of 17%.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21.2% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It has a Zacks Rank of 2 (Buy) at present. LULU delivered a 6.7% earnings surprise in the last reported quarter.
The consensus estimate for lululemon’s fiscal 2025 earnings and sales indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
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Walmart Q4 Earnings Beat Estimates, E-Commerce Growth Supports Sales
Walmart Inc. (WMT - Free Report) posted fourth-quarter fiscal 2025 results, with the top and bottom lines increasing year over year and cruising past their respective Zacks Consensus Estimate. The company experienced growth across all business segments, expanding e-commerce, increasing pickup options and accelerating delivery services. Newer ventures like the marketplace, advertising and membership have contributed to diversified profits, reinforcing the resilience of Walmart’s business model. The company also hiked its annual dividend rate.
Walmart’s adjusted earnings of 66 cents per share jumped 10% from the year-ago period’s figure of 60 cents. The metric came ahead of the Zacks Consensus Estimate of 65 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues grew 4.1% year over year to $180.6 billion, which beat the consensus mark of $180 billion. However, revenues included an adverse currency impact of $2.1 billion. On a constant-currency (cc) basis, total revenues climbed 5.3%. Revenues were backed by strength across all operating segments.
Walmart Inc. Price, Consensus and EPS Surprise
Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote
Walmart’s Quarterly Metrics: Key Insights
Walmart’s Global e-commerce sales surged 16% as penetration increased across all segments. The upside can be attributed to store-fulfilled pickup and delivery services, along with growth in the U.S. marketplace. However, growth was impacted by the timing of Flipkart’s Big Billion Days (BBD) sales event. The company witnessed a 16% increase in global membership income. WMT’s global advertising business advanced 29%.
The consolidated gross profit margin expanded 53 basis points (bps) to 23.9%, driven by Walmart U.S. Margin growth. The upside was backed by effective inventory management and reduced markdowns, allowing for strategic pricing to maintain competitive price gaps, along with an improved business mix. However, this was partially offset by challenges from the merchandise mix. In addition, margins were positively impacted by the timing shift of Flipkart's Big Billion Days sales event.
Operating expenses deleveraged 46 bps, mainly due to higher variable pay from surpassing planned performance, as well as rising utilities and marketing costs. In addition, expenses were impacted by costs associated with the VIZIO acquisition.
The company’s operating income increased 8.3% year over year to $7.9 billion driven by solid sales growth, a greater gross margin and higher membership income, partly negated by expense deleverage. The metric also saw benefits from improved economics in e-commerce.
Decoding Walmart’s Segmental Show
Walmart U.S.: The segment’s net sales grew 5% year over year to $123.5 billion. U.S. comp sales, excluding fuel, improved 4.6% due to transaction growth of 2.8% and an average ticket increase of 1.8%. Sales growth was backed by broad-based strength with solid seasonal performance despite a shortened holiday shopping season. WMT witnessed solid transaction counts and unit volumes, with continued share gains fueled by upper-income households. E-commerce sales in the segment rose 20%, driven by store-fulfilled pickup & delivery and growth in the marketplace as well as in the company’s Connect advertising.
As of the fiscal fourth quarter, Walmart U.S. had nearly 4,600 pickup locations and about 4,500 delivery stores. The company remodeled about 100 stores during the reported quarter. The operating income of the Walmart U.S. segment jumped 7.4% to $6.5 billion.
Walmart International: The segment’s net sales inched down 0.7% to $32.2 billion, including currency headwinds of $2 billion. On a cc basis, net sales jumped 5.7%, driven by Walmex, China and Canada. The company saw successful festive events in markets with solid general merchandise growth.
E-commerce sales went up 4% in the segment, reflecting the impact of the timing of Flipkart's BBD. The company’s membership income grew more than 20%. The operating income, on a cc basis, grew 10.1% to $1.6 billion.
Sam’s Club U.S.: The segment, which comprises membership warehouse clubs, witnessed a net sales increase of 7.1% to $23.1 billion (excluding fuel). Sam’s Club’s comp sales, excluding fuel, grew 6.8%. While transactions grew 5.4%, the average ticket climbed 1.3%. The company saw strong performance in food and health & wellness, along with share gains in grocery and general merchandise categories, including apparel and consumer electronics.
E-commerce net sales jumped 24% at Sam’s Club U.S., backed by momentum in delivery from the club, with digital penetration at an all-time high. The segment’s operating income totaled $574 million, down 7.4% year over year.
WMT Stock: Other Updates & Developments
Walmart ended the quarter with cash and cash equivalents of $9 billion and total debt of $45.8 billion.
For fiscal 2025, WMT generated an operating cash flow of $36.4 billion and a free cash flow of $12.7 billion. In fiscal 2026, capital expenditures are likely to account for nearly 3-3.5% of net sales.
During the quarter, Walmart’s share repurchases amounted to $1.4 billion, representing 15.9 million shares. The remaining share repurchase authorization stands at $12 billion.
The company announced a 13% increase in its annual dividend for fiscal 2026, raising it to 94 cents per share.
Image Source: Zacks Investment Research
What to Expect From WMT in Fiscal 2026?
For the first quarter of fiscal 2026, WMT expects consolidated net sales growth of 3-4% (at cc). The adjusted operating income is expected to increase 0.5-2% at cc in the quarter. Walmart expects quarterly adjusted EPS to be in the 57-58 cents range. The company recorded an adjusted EPS of 60 cents in the first quarter of fiscal 2025.
For fiscal 2026, WMT expects consolidated net sales growth of 3-4% (at cc). The adjusted operating income is expected to increase 3.5-5.5% at cc for the year. Net interest expenses are likely to escalate $100-$200 million. Walmart expects adjusted EPS for fiscal 2026 to be in the $2.50-$2.60 range. The company recorded an adjusted EPS of $2.51 in fiscal 2025.
Shares of this Zacks Rank #3 (Hold) company have gained 17.7% in the past three months compared with the industry’s growth of 17%.
Stocks Looking Red Hot
Some better-ranked stocks are Boot Barn Holdings, Inc. (BOOT - Free Report) , Deckers Outdoor Corporation (DECK - Free Report) and lululemon athletica inc. (LULU - Free Report) .
Boot Barn is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21.2% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It has a Zacks Rank of 2 (Buy) at present. LULU delivered a 6.7% earnings surprise in the last reported quarter.
The consensus estimate for lululemon’s fiscal 2025 earnings and sales indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.