Core Insights - New Walmart CEO John Furner presented a cautious outlook during his first earnings call, despite reporting better-than-expected same-store sales growth of 4.6% in the latest quarter [2] - Walmart's revenue for the fourth quarter rose 5.6% year over year to $190.7 billion, indicating a strong earnings performance [3] - The company is experiencing significant growth in its e-commerce sector, with US online sales increasing by 27%, marking the 15th consecutive quarter of double-digit growth [3] Financial Performance - Walmart's revenue for the fourth quarter reached $190.7 billion, reflecting a year-over-year increase of 5.6% [3] - The company reported a same-store sales increase of 4.6% for the latest quarter, surpassing expectations [2] - Walmart's stock fell by 1.4% following the earnings call, attributed to conservative guidance for fiscal 2027, which projected sales growth of 3.5% to 4.5% [4] Consumer Trends - The majority of sales gains were attributed to households earning over $100,000, indicating a trend of affluent consumers seeking value at discount retailers amid inflation [4] - Consumer uncertainty and economic factors such as elevated student loan delinquencies and a "hiring recession" were highlighted as reasons for caution in the company's outlook [4] Strategic Initiatives - Walmart is focusing on expanding its e-commerce presence, with initiatives like a partnership with OpenAI to facilitate purchases through ChatGPT [3] - The company plans to allocate $30 billion towards stock buybacks, reflecting confidence in its market position [4] - Analysts suggest that Walmart's conservative guidance is a strategy to set a "beatable bar," encouraging investors to view any weakness as a buying opportunity [4]

Group 1 - Amazon's sales have surpassed Walmart's for the first time, with Amazon reaching $717 billion in sales compared to Walmart's $713.2 billion in 2025, indicating a significant shift in retail comparisons [1][2] - Walmart is focusing on enhancing consumer engagement and delivery capabilities, positioning itself as a technology-driven company while also emphasizing the integration of AI in retail [2][3] - The company reported a strong fourth quarter with nearly 5% top-line growth and over 12% EPS growth, but expressed caution regarding future guidance due to economic uncertainties [5][6][7] Group 2 - Walmart's strategy includes leveraging tax refunds, which are projected to be 20% higher this year, to drive consumer spending, particularly in discretionary items [8][10] - The company has gained market share across virtually every category, indicating strong customer engagement and a focus on providing value and convenience [13] - Walmart's delivery speed has improved significantly, with one-third of orders delivered in under three hours, and 95% of America served within that timeframe [14][15][28] Group 3 - AI is a top priority for Walmart, with the introduction of the Sparky platform leading to a 35% increase in basket size among users, showcasing the effectiveness of personalized shopping experiences [23][24] - The company is utilizing its extensive store network as distribution nodes to enhance fulfillment speed, which is crucial for increasing conversion rates [27][28] - Walmart is investing in technology to improve operational efficiency, such as digital shelf labels that automate price changes, allowing associates to focus on customer service [30][32] Group 4 - The leadership transition at Walmart is generating excitement, with new leaders bringing extensive experience and a commitment to the company's strategic direction, particularly in digital channels and AI [33][34][35]

Core Insights - Walmart's AI chatbot, Sparky, is significantly increasing customer spending, with users placing orders that are, on average, 35% larger than those who do not use the tool [1][6] - The company is positioning itself as both a retail giant and a technology powerhouse, recently joining the Nasdaq 100 index [3] Group 1: AI and Technology Integration - Sparky is enhancing Walmart's digital unit economics and is expected to expand its capabilities and international presence [2][3] - Walmart is collaborating with tech companies like Google and OpenAI to integrate its products into their AI chatbots, enhancing accessibility for consumers [3][4] Group 2: Sales Forecast and Market Conditions - Walmart forecasts a year-over-year sales increase of 3.5% to 4.5%, despite a somewhat unstable economic backdrop [4] - The company acknowledges consumer behavior trends, noting that households with annual incomes of $50,000 or less are experiencing some financial stress [5]

Core Insights - Walmart's e-commerce operations achieved profitability in 2025, surpassing breakeven levels, with a positive outlook for future growth [1] - The company reported a 4.7% increase in overall sales to $713.2 billion, with e-commerce sales rising nearly 25% to over $150 billion [2] - Walmart's physical presence, with 5,200 locations, enhances its ability to deliver customer experiences, particularly in grocery and everyday essentials [4] E-commerce Growth - High-income households, particularly those earning over $100,000, have significantly contributed to Walmart's share gains in e-commerce [2] - The expansion of product categories, including fashion, has attracted new shoppers, with fashion leading sales growth in general merchandise [5][6] - Walmart's in-house shopping assistant, Sparky, has resulted in 35% larger transaction totals among app users [7] Competitive Landscape - Despite Walmart's growth, Amazon remains the largest company by revenue, with $716.9 billion, but Walmart's e-commerce progress poses a competitive threat [3][8] - Walmart's strategy to leverage its physical stores for e-commerce fulfillment gives it an edge in rapid delivery services compared to Amazon [4]

We have a decent amount of grist for the stock market mill this morning, with key earnings reports joining key economic news. Pre-market indexes have slid into the red from early-morning highs, but are leveling off currently: the Dow is -133 points, -0.27%, the S&P 500 -19, -0.28%, the Nasdaq -92, -0.37% and the small-cap Russell 2000 -10, -0.39%.Jobless Claims Remain Historically LowThursday morning Weekly Jobless Claims are out again ahead of today’s open, with an Initial Jobless Claims headline of 206K b ...

Core Insights - Walmart's stock experienced volatility following a conservative outlook for Q1 and the full fiscal year, with shares initially dropping before recovering [1] - The company announced a $30 billion stock buyback plan, indicating confidence in its financial health despite a cautious outlook [2] Financial Performance - Net sales reached $190.7 billion, reflecting a 5.6% increase from the previous year, slightly above the $190.6 billion estimate [6] - Adjusted earnings per share were reported at $0.74, a 12.1% increase year-over-year, surpassing the $0.73 estimate [6] - Comparable sales growth for Walmart US was +4.2%, slightly below the +4.3% estimate, while e-commerce sales grew by 27%, exceeding the 19.8% estimate [6] - Sam's Club US comparable sales growth was +4%, also below the +4.4% estimate, with e-commerce sales growth at 23%, surpassing the 15% estimate [6] Forward Guidance - Q1 earnings per share guidance is projected between $0.63 and $0.65, below the $0.69 estimate [6] - Full fiscal year guidance anticipates net sales growth of 3.5% to 4.5% and diluted earnings per share between $2.75 and $2.85, lower than the $2.97 estimate [6] Market Trends - The CFO noted signs of cooling inflation, particularly in food prices, which could lead to stronger sales trends as consumers receive tax refunds [2] - The company highlighted that fresh produce purchases significantly increase basket sizes, which is crucial for overall sales performance [3]

Core Insights - Walmart's quarterly earnings slightly exceeded Wall Street estimates, marking the first report under new CEO John Furner [1] - The retailer's market capitalization recently surpassed $1 trillion for the first time [1] Financial Performance - Adjusted earnings per share for the fourth quarter of fiscal year 2026 were reported at $0.74, slightly above the forecast of $0.73 [1] - Revenue for the quarter increased by 5.6% to $190.7 billion, aligning closely with Wall Street's expectations of $190.6 billion [2] - For fiscal year 2026, Walmart's total revenue reached $715.9 billion, slightly above estimates, with adjusted earnings per share at $2.64, a cent higher than expected [3] Stock Performance - Walmart's shares rose by 1% in premarket trading and have increased over 13% year to date [4] Future Guidance - For the first quarter, Walmart anticipates revenue growth of 3.5-4.5% and adjusted earnings per share of $0.63-$0.65, which is below Wall Street's expectations of 5% growth and earnings of $0.69 [4] - For fiscal year 2027, the company expects revenue growth of 3.5%-4.5% and adjusted earnings of $2.75-$2.85, also conservative compared to Wall Street's forecast of nearly 5% growth and earnings of $2.97 [5] - CFO John David Rainey indicated a cautious approach due to an unstable economic backdrop, despite no significant changes in consumer behavior [5] Operational Highlights - Quarterly same-store sales in the US grew by 4.6%, surpassing estimates of 4.3%, driven by e-commerce strength and a 2.6% increase in transactions [6]

Financial Data and Key Metrics Changes - Revenue increased by 4.9% in constant currency, with e-commerce growth at 24% and adjusted operating income growing at 10.5% [5][15] - For the full year, revenue exceeded $700 billion for the first time, growing approximately 5% in constant currency, adding $35 billion [15] - Adjusted operating income grew 5.4%, despite a 300 basis point headwind from increased claims expenses and tariffs [15][24] Business Line Data and Key Metrics Changes - Walmart U.S. comp sales increased by 4.6%, with e-commerce sales growing 27% [16] - International operating income increased by over 26%, driven by improved e-commerce economics [16] - Advertising businesses globally increased by 37%, with Walmart Connect in the U.S. up 41% [17][36] Market Data and Key Metrics Changes - E-commerce in China grew 28%, representing over 50% of the sales mix in that market [16] - Sam's Club U.S. doubled their growth in club-fulfilled delivery sales [16] - The majority of share gains came from households earning over $100,000, while lower-income households are managing spending more carefully [6][7] Company Strategy and Development Direction - The company is focused on an omnichannel model, emphasizing inventory management and fast delivery [5][9] - Investments in technology and supply chain are aimed at enhancing customer experience and operational efficiency [9][25] - The strategy includes capital allocation based on return on investment, with a focus on maintaining a strong value proposition for customers [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's ability to deliver strong growth and profits despite dynamic operating conditions [14] - The outlook for the upcoming year includes expected sales growth of 3.5% to 4.5% and operating income growth of 6% to 8% [23][26] - Management remains cautious about potential economic headwinds but is optimistic about the company's momentum and growth opportunities [41][42] Other Important Information - The company authorized a $30 billion share repurchase program, the largest to date, reflecting confidence in cash flow generation [24] - The focus on AI and technology partnerships is expected to enhance customer experiences and operational efficiencies [25][68] Q&A Session Questions and Answers Question: On agentic commerce and its impact on customer traffic and advertising - Management highlighted that agentic commerce is part of the omnichannel strategy, enhancing customer intent understanding and driving higher average order values [30][32] Question: How to factor unknown costs into the outlook - Management indicated a balanced approach to guidance, considering potential economic indicators while maintaining flexibility [40][42] Question: Expectations for inflation and disinflation - Management noted that inflation was trending slightly above 1%, with expectations for food and general merchandise inflation to remain stable [45][46] Question: Outlook for gross margin and inventory management - Management discussed improvements in inventory management through automation and technology, expecting continued benefits in gross profit [49][55] Question: Progression of Marketplace growth and fulfillment services - Management characterized Marketplace as an area of ongoing investment, focusing on growth rather than immediate profitability [59][60] Question: E-commerce profitability and personalization with AI - Management emphasized the importance of AI in enhancing customer experiences and driving e-commerce profitability [63][67] Question: Advertising growth expectations - Management expressed optimism about advertising growth, particularly in the Marketplace and VIZIO acquisition, while acknowledging the challenges of scaling [70][73]

Financial Data and Key Metrics Changes - Revenue for the fourth quarter increased by 4.9% in constant currency, with e-commerce growth at 24% [4][14] - Adjusted operating income grew by 10.5%, outpacing sales growth [4][14] - For the full year, total revenue exceeded $700 billion for the first time, with a 5% increase in constant currency [14] - Adjusted operating income for the full year grew by 5.4%, despite a 300 basis point headwind from increased claims expenses [14][23] Business Line Data and Key Metrics Changes - Walmart U.S. comp sales rose by 4.6%, with e-commerce sales growing by 27% [14][15] - International segment operating income increased by over 26%, driven by improved e-commerce economics [15] - Advertising income globally increased by 37%, with Walmart Connect in the U.S. up by 41% [16][35] - Membership income grew by over 15%, reflecting strength in Sam's Club in China and the U.S. [16] Market Data and Key Metrics Changes - E-commerce sales in China grew by 28%, representing more than 50% of the sales mix in that market [15] - Fast delivery services in the U.S. saw a growth of over 60% year-over-year [9][15] - The majority of share gains in the U.S. came from households earning over $100,000, while lower-income households are managing spending carefully [5][6] Company Strategy and Development Direction - The company is focused on an omnichannel strategy, leveraging technology and automation to enhance customer experience and delivery speed [4][9] - Investments in AI and technology are aimed at improving inventory management and customer engagement through tools like Sparky [10][11] - The strategy includes capital allocation based on return on investment, with a focus on maintaining a strong value proposition for customers [7][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the ability to navigate complex operating conditions [13][41] - The outlook for the upcoming fiscal year includes sales growth expectations of 3.5% to 4.5% and operating income growth of 6% to 8% [21][22] - Management remains cautious about potential economic headwinds but is optimistic about the company's ability to outperform guidance [41][42] Other Important Information - The company authorized a $30 billion share repurchase program, its largest to date, reflecting confidence in cash flow generation [23] - Capital expenditure levels for FY 2027 are expected to be approximately 3.5% of sales, with a focus on supply chain automation and store remodels [24] Q&A Session Summary Question: On agentic commerce and its impact on customer traffic and advertising - Management highlighted that agentic commerce is part of the omnichannel strategy, enhancing customer intent understanding and driving higher average order values [28][29][32] Question: Regarding unexpected costs and outlook for the year - Management noted a measured approach to guidance, considering potential economic indicators while maintaining flexibility [37][41] Question: On disinflation and its impact on pricing - Management indicated that inflation trends are expected to remain stable, with some pressures from legislation affecting drug prices [44][45] Question: About e-commerce profitability and competition - Management emphasized the importance of maintaining share momentum through effective inventory management and leveraging technology [84]

Walmart Q4 FY26 Financial presentation Guidance The following forward-looking statements reflect the Company's expectations as of February 19, 2026, and are subject to substantial uncertainty. The Company's results may be materially affected by many factors, such as fluctuations in foreign currency exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, customer demand and spending, inflation, interest rates, world events, and the various other factors detailed in ...