Overview
Walmart reported fourth quarter fiscal 2026 revenue of $190.7 billion, representing a 5.6% year-over-year increase and slightly exceeding market expectations. Adjusted earnings per share reached $0.74, compared with a consensus estimate of $0.73. Operating income grew at a faster pace than sales, reflecting improved cost control and operating leverage.
Global eCommerce sales expanded by 24%, reinforcing the company’s continued digital momentum. Shares traded modestly higher following the announcement, fluctuating in the $125 to $129 range in both premarket and regular trading, indicating measured but constructive investor sentiment.
Company Profile
Walmart Inc. is a people-led, technology-enabled omnichannel retailer headquartered in Bentonville, Arkansas. Founded in 1962, the company serves approximately 280 million customers and members each week through more than 10,900 stores and digital platforms across 19 countries.
For fiscal 2026, the company generated $713.2 billion in revenue and employs roughly 2.1 million associates worldwide. Recent market metrics reflect a market capitalization close to $995 billion, a price-to-earnings ratio near 45.7, and an annual dividend increased to $0.99 per share for FY26. Analysts maintain a broadly favorable outlook, with the stock recently trading between $124 and $129.
Key Financial Highlights
- Fourth quarter total revenue reached $190.7 billion, up 5.6%, with constant currency growth of 4.9%. Net sales increased to $188.9 billion, compared with $178.8 billion in the prior year period.
- Operating income rose 10.8% to $8.7 billion, outpacing revenue growth. On a constant currency basis, adjusted operating income increased 10.5%, indicating underlying margin expansion.
- Consolidated gross profit totaled $45.3 billion, with the gross margin rate improving by 13 basis points to 24.0%, supported by inventory discipline and improved product mix.
- GAAP earnings per share were $0.53, while adjusted EPS of $0.74 marked a 12.1% year-over-year increase and exceeded consensus expectations.
- Full-year operating cash flow increased 14.1% to $41.6 billion, and free cash flow rose to $14.9 billion, an improvement of $2.3 billion.
- Cash and cash equivalents stood at $10.7 billion, with total debt of $51.5 billion at fiscal year end.
Segment Performance
- Global eCommerce sales grew 24% in the quarter, representing 23% of total sales mix. Advertising revenue increased 37% in Q4 and 46% for the full year, reaching nearly $6.4 billion, including contributions from VIZIO.
- Walmart U.S. delivered net sales of $129.2 billion, up 4.6%, with comparable sales excluding fuel also increasing 4.6%. U.S. eCommerce expanded 27%, reflecting strong omnichannel demand.
- Walmart International recorded net sales of $35.9 billion, rising 11.5% or 7.5% in constant currency, while operating income advanced 36.0%.
- Sam’s Club U.S. generated net sales of $23.8 billion, up 2.9%, with comparable sales excluding fuel increasing 4.0% and eCommerce rising 23%.
Capital Allocation and Outlook
- During fiscal 2026, Walmart returned significant capital to shareholders, including $7.5 billion in dividends and $8.1 billion in share repurchases, equivalent to approximately 85 million shares.
- The company also announced a new $30 billion share repurchase authorization, reinforcing confidence in long-term cash generation.
- For fiscal 2027, management expects net sales growth of 3.5% to 4.5% and adjusted operating income growth of 6.0% to 8.0% in constant currency. Adjusted EPS is projected in the range of $2.75 to $2.85.
Historical Q4 Performance Review
Year over Year Comparison
Walmart delivered solid top line growth in Q4 FY26, with revenue increasing 5.6% to $190.7 billion from $180.6 billion in Q4 FY25. The expansion reflects continued strength in U.S. comparable sales and sustained digital growth.
Operating income rose 10.8% to $8.71 billion, outpacing revenue growth and indicating margin expansion. Operating expenses increased 5.0% to $38.33 billion, largely aligned with sales growth and ongoing investments in technology, wages, and supply chain capabilities.
Net income declined 19.4% to $4.24 billion, primarily due to higher other losses and investment-related impacts.
As a result, GAAP EPS decreased 18.5% to $0.53 from $0.65 in the prior year. However, adjusted EPS improved 12.1% to $0.74, reflecting stronger core operating performance after excluding non-recurring items.
Comparative Snapshot – U.S. Retail Peer Benchmark
In comparison, Costco Wholesale Corporation reported revenue of approximately $79 billion in its latest fourth quarter, representing modest growth of around 1% to 2% year over year. Revenue growth was comparatively lower, reflecting differences in merchandising strategy and pricing structure.
Costco’s net income increased by roughly 10% to 15%, supported by stable membership renewal rates and disciplined expense management. While direct operating expense comparisons are limited due to reporting differences, the peer demonstrated steady profitability growth.
Relative to Costco, Walmart showed stronger revenue acceleration and operating income expansion in Q4 FY26. However, the decline in GAAP net income highlights the impact of investment-related volatility, suggesting that underlying operational strength was partially offset by non-operational factors.
Market Reaction
Investor response to the earnings release was cautiously positive. The modest revenue and adjusted EPS beat, combined with accelerating operating income and continued strength in eCommerce and advertising, supported a constructive outlook.
However, the decline in GAAP net income due to investment-related losses prompted some investors to examine earnings quality and potential volatility. Overall, sentiment reflects balanced optimism supported by solid fundamentals and disciplined capital allocation.
Sources:
- https://in.investing.com/news/company-news/walmart-q4-fy26-presentation-highlights-revenue-tops-190b-ecommerce-surges-93CH-5247625
- https://robinhood.com/us/en/stocks/WMT/
- https://finsee.ai/earnings/wmt/2026/q4/en