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BENTONVILLE, Ark. — Walmart has released its fourth-quarter earnings results, showing strong revenue and operating income growth. Revenue and adjusted earnings per share exceeded Wall Street's expectations in the retailer's fourth quarter and fiscal 2025 results. Quarterly revenue rose 5.3% to $182.6 billion, while adjusted EPS increased 10% to $0.66 compared to a year earlier.
Walmart US saw a 4.6% rise in same-store sales this quarter, slightly below the anticipated 4.66% increase. This growth was driven by the retailer's ongoing strategy to appeal to more affluent shoppers, focusing on value and convenience.
The retail giant’s total sales increased to $ 180.60 billion in the January quarter from $171.91 billion in the comparable period last year. On an adjusted basis, earnings increased to $0.66 per share in Q4 from $0.60 per share in the year-ago quarter.
Walmart's US e-commerce division experienced a 20% sales increase, driven by in-store pickup and delivery, alongside its advertising platform and online marketplace. Additionally, robust seasonal sales during the shortened holiday shopping season contributed positively to the quarter's performance.
"Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an eCommerce 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," said Doug McMillon President and CEO.
Fourth Quarter Highlights:
- Revenue of $180.6 billion, up 4.1%, or 5.3% (cc)
- Gross margin rate up 53 bps, led by Walmart U.S.
- Operating income up $0.6 billion, or 8.3%, adjusted up 9.4% (cc) 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 U.S. marketplace; growth negatively affected by timing of Flipkart’s Big Billion Days sales event (“BBD”)
- Global advertising business grew 29%, including 24% for Walmart Connect in the U.S.
- Adjusted EPS of $0.66 excludes the effect, net of tax, from a net loss of $0.02 on equity and other investments as well as $0.01 from the proceeds of an opioid-related legal settlement
- Completed acquisition of VIZIO
Full Year Highlights:
- Revenue of $681.0 billion, up 5.1%, or 5.6% (cc)
- Global advertising business grew 27% to reach $4.4 billion
- Operating income up $2.3 billion or 8.6%; adjusted up 9.7% (cc), growing faster than sales
- ROA at 7.9%; ROI at 15.5%, up 50 bps
- Global inventory up 2.8%, including an increase of 3.0% for Walmart U.S.; in-stock levels healthy
- Company raises dividend 13% to $0.94 per share; largest increase in over a decade
Walmart Inc.'s Board of Directors has approved an annual cash dividend for fiscal year 2026 set at $0.94 per share, marking a 13% rise from the previous fiscal year's $0.83 per share. This annual dividend of $0.94 will be disbursed in four quarterly payments of $0.235 each.
“We're proud to be increasing our annual dividend for the 52nd consecutive year. Dividends are part of our balanced capital returns approach and this year’s 13 percent increase is a sign of our continued confidence in sustained business performance.” said John David Rainey, executive vice president and chief financial officer at Walmart Inc.
Over the past two years, Walmart has outperformed the market and many large tech stocks. Since spring 2023, its shares have more than doubled, adding over $400 billion in market value due to an overhaul of supply-chain costs to increase profit margins in groceries and general merchandise.
Walmart will hold a live conference call with the investment community today at 8 a.m. ET to discuss its fourth-quarter and full-year earnings results. Doug McMillon, president and chief executive officer, and John David Rainey, executive vice president and chief financial officer, will host the call and answer questions.
The event will be webcast live and is accessible by visiting corporate.walmart.com/news/events and selecting the Fourth Quarter Earnings Release event. It will also be archived and available on the company website.
