About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Walmart Inc. (WMT) is prioritizing long-term growth through investments in its workforce, technology and customer experiences. Despite challenges from rising tariffs and market uncertainty, the company has reaffirmed its first-quarter fiscal 2026 outlook, demonstrating confidence in its adaptable business model and diversified profit streams.How Walmart is Navigating Tariffs and Market VolatilityWalmart is adjusting its strategy in response to the newly implemented tariff environment, which adds another lay ...

Safe harbor and non-GAAP measures . This onesentation and relates management commentary contains statements that may be "for ward-looking statements" as defined in and are interned to en ov rithe protection looking statements within the meaning of Section 27E of the Securities Exchange Act of 1934, as amended. Assumptions on which such for ward-looking statements are based are statements. Statements of cur quidance, projections, excirnates, excectations, iparas and dbiectives for the fisst audrer and remain ...

Walmart's finance chief said the retailer is facing "day-to-day" sales volatility amid President Donald Trump's tariff uncertainty. "We are one week into this new tariff environment, and we're still working through what it means to us," John Rainey, the company's CFO, said at the Walmart Investment Community Meeting on Wednesday. Rainey said that a third of Walmart's offerings are imported from outside the US. China and Mexico are the "most significant" countries that Walmart imports from, he said. As Ch ...

Walmart has pulled its guidance for operating income in the first quarter, while Delta Air Lines cut its growth plans amid the escalation of President Donald Trump's trade war. As the largest private employer in the U.S. and a dominant force in retail, Walmart, alongside Delta, the nation’s most profitable airline, offers key insight into consumer confidence.Walmart announced on Wednesday that the "range of outcomes for Q1 operating income growth has widened due to less favorable category mix, higher casual ...

Core Insights - Walmart Inc. is launching a weeklong celebration for Walmart+ members, featuring exclusive perks, discounts, and entertainment to enhance customer loyalty and engagement [1][4] - The company reports strong growth in Walmart+ engagement, with double-digit growth in delivery volumes and high repeat order rates [5][6] Promotions and Offers - Walmart+ Week includes offers such as one free Express Delivery, $0.50 off per gallon of fuel at participating gas stations, and $5 in Walmart Cash for in-store purchases over $15 [1][3] - Fast-food promotions include up to two free sandwiches from Burger King with any $1+ purchase through the BK app or website, and a six-month subscription to Paramount+ with SHOWTIME for members [2] Member Engagement and Growth - Over the past year, Walmart delivered more than 5 billion items, with 93% of U.S. households having access to same-day delivery services, reflecting a focus on speed and flexibility [6] - The company emphasizes that Walmart+ Week is a strategic effort to deepen value for members, reinforcing the idea that membership pays for itself [4] Business Model and Strategy - Walmart's diversified business model is driving growth across multiple segments, with increased traffic in both in-store and digital platforms [7] - The company is leveraging advanced data analytics and optimizing its digital infrastructure to support seamless integration across platforms [8] Financial Outlook - Despite strong growth drivers, Walmart anticipates challenges in the retail environment, projecting consolidated net sales growth of 3-4% for fiscal 2026, a slowdown from the 5.6% rise in fiscal 2025 [9] - In the past three months, Walmart's stock has declined by 12.1%, compared to the industry and S&P 500 index declines of 8.6% and 13.6%, respectively [11]

Core Viewpoint - Walmart has maintained its full-year sales and income growth forecasts despite concerns over President Trump's tariffs, indicating confidence in its ability to manage through economic turbulence [1][4][10] Sales and Income Forecast - The company expects sales for the fiscal year ending January 2026 to rise between 3% and 4%, with annual adjusted operating income projected to increase between 3.5% and 5.5% [5] - Walmart has kept its first-quarter sales forecast intact, but the range of outcomes for first-quarter operating income growth has widened due to the impact of tariffs [6][8] Impact of Tariffs - As the largest US importer of containerized goods, Walmart is at risk from tariffs primarily affecting imports from Asian countries, including a 104% duty on Chinese goods [4][10] - Approximately 60% of Walmart's imports come from China, with Vietnam also being a significant supplier [10] Management Strategy - CEO Doug McMillon emphasized the company's focus on keeping prices low and managing inventory and expenses effectively [5][8] - The company has been negotiating with suppliers regarding price hikes to mitigate the effects of tariffs on incoming goods [6][11] Market Conditions - Sales performance has been variable, with general merchandise sales reported as soft early in the quarter, making operating income harder to predict [9]

Walmart is pulling its first-quarter operating income outlook due in part to tariff-related concerns.“The range of outcomes for Q1 operating income growth has widened due to less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented,” the retail giant said in a news release Wednesday (April 9).Walmart had forecast operating income of 0.5% to 2% for the first quarter when it released fourth-quarter earnings results in Febru ...

Core Viewpoint - Walmart's stock has experienced a significant decline from its all-time high, raising questions about its valuation and future growth potential [1][2][9]. Financial Performance - Walmart reported total revenue of $648.1 billion for fiscal 2025, reflecting a year-over-year increase of 5.6% [3]. - In Q4, U.S. comparable sales rose by 4.6%, with e-commerce sales growing by 20% [4]. - Global advertising sales increased by 29% year over year in Q4, surpassing the full-year growth rate [4]. - Adjusted earnings per share for the most recent quarter were $0.66, up from $0.60 in the previous year [5]. Profitability and Growth Outlook - Operating income increased by 8.3%, or 9.4% when adjusted for currency fluctuations [5]. - For fiscal 2026, management anticipates net sales growth of 3% to 4% and adjusted operating income growth of 3.5% to 5.5%, indicating a slowdown from previous growth rates [6]. Market and Economic Conditions - Broader macroeconomic factors such as higher interest rates, inflation, and consumer spending concerns may impact Walmart's growth [7]. - The company is positioned to benefit from its value-based retail model during economic downturns, but potential new tariffs could affect costs and margins [7][8]. Valuation Concerns - Despite a recent stock price decline, Walmart's shares still trade at a price-to-earnings multiple of 35, which is significantly higher than the S&P 500's multiple of about 22 [9]. - Current valuation, combined with cautious financial guidance and macroeconomic challenges, suggests that this may not be an optimal entry point for investors [10].

Core Insights - Walmart's stock has dropped nearly 20% from its all-time high in February, prompting a review of its earnings results and outlook to assess investment potential [2] - The company reported $180.6 billion in revenue for fiscal Q4 2025, a 4.1% year-over-year increase, but net income decreased from $5.7 billion to $5.3 billion [3][4] - Walmart's management remains cautiously optimistic for fiscal year 2026, projecting net sales growth of 3% to 4% and adjusted earnings per share (EPS) between $2.50 and $2.60, indicating little to no growth from fiscal year 2025's EPS of $2.51 [9] Financial Performance - Walmart's revenue for fiscal Q4 2025 was $180.6 billion, a 4.1% increase year-over-year, while net income fell from $5.7 billion to $5.3 billion [3] - The company faced higher costs of sales (up 3.3% year-over-year) and increased operating expenses (up 6.5% year-over-year), attributed to growing e-commerce sales [4] - Walmart's e-commerce sales now account for 18% of net sales, which are more costly than traditional stores [4] Capital Allocation - Walmart returns approximately half of its profits to shareholders through dividends and share repurchases [5] - The company has a strong dividend history, being a "Dividend King" with a recent 13% increase in its quarterly payout to $0.235 per share, resulting in an annual yield of 1.1% [6] - In fiscal year 2025, Walmart allocated $4.5 billion to share repurchases, with $12 billion remaining under its current repurchase program [7] Growth Drivers - Management believes that membership growth with Walmart+, Sam's Club, and its advertising business will drive future growth [10] - "Membership and other income" segments grew from $5.5 billion in fiscal year 2024 to $6.5 billion in fiscal year 2025, a 17.5% increase [10] - The global advertising segment increased by 27% year-over-year to approximately $4.4 billion [10] Valuation and Debt - Walmart currently trades at a price-to-earnings (P/E) ratio of 35.6, above its five-year median of 31, indicating a premium valuation [12] - The company carries $30 billion in net debt, which cost $2.3 billion to service in fiscal year 2025, although it has reduced net debt by 25% over the past three years [12] - Despite high valuation and sluggish earnings growth, Walmart's dividend longevity makes it a solid long-term hold for income-seeking investors [13]