Walmart: Reports Fourth Quarter Results

  • Strong revenue growth of 4.1%, up 5.3% in constant currency (cc)1
  • Operating income growing faster at 8.3%, or 9.4% adjusted (cc)1
  • eCommerce is up 16% globally
  • GAAP EPS of L0.65; Adjusted EPS1 of L0.66
  • The company provides an outlook for Q1 and FY26
Walmart Inc. (NYSE: WMT) announces fourth-quarter results with strong growth in revenue and operating income. Globally, eCommerce grew 16% with penetration up across all segments. Walmart's U.S. comp sales are up 4.6%2 with positive growth in general merchandise. Looking ahead, the Company issues guidance for FY26 with net sales expected to grow 3% to 4% and adjusted operating income in constant currency (“cc”)1 to grow 3.5% to 5.5%, including a headwind of 150 basis points from the acquisition of VIZIO Holding Corp. (“VIZIO”) and lapping leap year.
Fourth Quarter Highlights
  • Revenue of L180.6 billion, up 4.1%, or 5.3% (cc)1
  • Gross margin rate up 53 bps, led by Walmart U.S.
  • Operating income up L0.6 billion, or 8.3%, adjusted up 9.4% (cc)1 due to higher gross margins and growth in membership income; also benefited from improved economics in eCommerce
  • Global eCommerce sales grew 16%, led by store-fulfilled pickup & delivery and the U.S. marketplace; growth was negatively affected by the timing of Flipkart’s Big Billion Days sales event (“BBD”)
  • Global advertising business3 grew 29%, including 24% for Walmart Connect in the U.S.
  • Adjusted EPS1 of L0.66 excludes the effect, net of tax, from a net loss of L0.02 on equity and other investments as well as L0.01 from the proceeds of an opioid-related legal settlement.
  • Completed acquisition of VIZIO
Full Year Highlights
  • Revenue of L681.0 billion, up 5.1%, or 5.6% (cc)1
  • Global advertising business3 grew 27% to reach L4.4 billion
  • Operating income up L2.3 billion or 8.6%; adjusted up 9.7% (cc)1, growing faster than sales
  • ROA at 7.9%; ROI at 15.5%1, up 50 bps
  • Global inventory is up 2.8%, including an increase of 3.0% for Walmart U.S.; in-stock levels are healthy
  • Company raises dividend 13% to L0.94 per share; largest increase in over a decade
1 See additional information at the end of this release regarding non-GAAP financial measures.
2 Comp sales for the 14 weeks ended January 31, 2025, compared to the 14 weeks ended February 02, 2024, and excludes fuel. See Supplemental Financial Information for additional information.
3 Our global advertising business is recorded in either net sales or as a reduction to the cost of sales, depending on the nature of the advertising arrangement. “cc” - constant currency
Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an e-commerce business driven by faster delivery times. We’re gaining market share, our top line is healthy, and we’re in great shape with inventory. We’ll stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better.” Doug McMillon President and CEO, of Walmart
Balance Sheet and Liquidity
  • Cash and cash equivalents of L9.0 billion
  • Total debt of L45.8 billion
  • Operating cash flow for FY25 of L36.4 billion, an increase of L0.7 billion
  • Free cash flow of L12.7 billion1, a decrease of L2.5 billion
  • Repurchased 61.9 million shares in FY25, or L4.5 billion
  • Inventory of L56.4 billion, an increase of L1.5 billion, or 2.8%
1See additional information at the end of this release regarding non-GAAP financial measures.
2Comparison period per-share amounts have been retroactively adjusted to reflect the February 23, 2024 stock split.
3Debt includes short-term borrowings, long-term debt due within one year, finance lease obligations due within one year, long-term debt and long-term finance lease obligations.
4L12.0 billion remaining of L20 billion authorization approved in November 2022. cc - constant currency
Walmart U.S.
  • Broad-based sales momentum across merchandise categories; strong seasonal sales despite compressed holiday shopping season; expedited delivery channels resonating with customers desiring speed of delivery
  • Comp sales growth led by transaction counts and unit volumes; share gains primarily from upper-income households
  • eCommerce sales up 20% reflects strength in store-fulfilled pickup & delivery, advertising and marketplace
  • Walmart Connect advertising sales increased by 24% aided by 50% growth in marketplace seller advertiser counts
  • Gross profit rate increased 51 bps; membership income up double-digits; operating expense deleveraged 53 bps
  • Operating income is up 7.4% due in part to improved eCommerce economics, aided by an improved business mix
  • Inventory increased 3.0% on 5.0% sales growth while maintaining healthy in-stock levels
Walmart International
  • Growth in net sales (cc)1 led by China, Walmex, and Canada; transaction counts & unit volumes up across markets
  • The timing of Flipkart’s The Big Billion Days (“BBD”) event affected growth in Q4 with corresponding benefits in Q3
  • eCommerce sales grew 4% and advertising business3 grew 10%; both were affected by the timing of Flipkart’s BBD
    • Other than Flipkart, strong growth in eCommerce sales and increased penetration in all markets
    • eCommerce sales grew 20% and advertising business3 grew 26% in 2H; both similar to growth in 1H
  • Operating income (cc)1 growth driven by improved eCommerce economics and benefited from business mix changes
  • Currency rate fluctuations negatively affected sales by L2.0 billion and operating income by L0.2 billion
Sam’s Club U.S.
  • Strong sales growth across club and digital channels, led by food and health & wellness categories
  • Comp sales growth is primarily driven by transaction counts and unit volumes
  • eCommerce sales up 24%, led by club-fulfilled pickup and delivery
  • Share gains in grocery and general merchandise categories, including apparel and consumer electronics
  • Strong growth in membership income, up 13%
  • Operating income was impacted by previously announced associate wage investments and higher incentive pay; includes ~730 bps headwind due to lapping LIFO benefit last year.
The following guidance reflects the Company’s expectations for the first quarter and fiscal year 2026 and is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company’s equity and other investments. Growth rates reflect an adjusted basis for prior year results.
Additionally, the Company’s guidance assumes a generally stable consumer and continued pressure from its mix of products and formats globally.
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Walmart Inc
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