Walmart Q4 Earnings Top Estimates on E-commerce and Ad Growth

Core Insights - Walmart Inc. reported strong fourth-quarter fiscal 2026 results, with both revenue and earnings exceeding expectations, driven by e-commerce growth, advertising expansion, and membership income gains [1][10] Financial Performance - Adjusted earnings per share were 74 cents, a 12.1% increase from 66 cents in the previous year, surpassing the Zacks Consensus Estimate by one cent [2] - Total revenues rose 5.6% year over year to $190.7 billion, exceeding the consensus estimate of $190.1 billion; on a constant-currency basis, revenues increased by 4.9% [2] - Gross profit increased by 5.3% to $34.8 billion, with the gross margin rate improving by 17 basis points to 26.9% [7][9] E-commerce and Advertising Growth - Global e-commerce sales surged 24%, accounting for 23% of total net sales, driven by store-fulfilled pickup and delivery and marketplace expansion [3][6] - The global advertising business grew by 37%, with Walmart Connect in the U.S. increasing by 41% [3][10] Segment Performance - Walmart U.S. net sales increased by 4.6% to $129.2 billion, with comparable sales (excluding fuel) also up by 4.6% [5] - Walmart International net sales rose 11.5% to $35.9 billion, with a constant-currency increase of 7.5%, led by markets such as China and Flipkart [8] Future Outlook - For fiscal 2027, Walmart projects net sales growth of 3.5-4.5% and adjusted EPS in the range of $2.75-$2.85, compared to $2.64 in fiscal 2026 [14]