Core Insights - VMware and Walmart have announced a strategic collaboration to implement VMware Cloud Foundation, aiming to unify and secure Walmart's cloud and edge operations, enhancing the shopping experience and operational efficiency [1][3] - Broadcom has been designated as a strategic vendor for virtualization software solutions, which will support Walmart's efforts to accelerate innovation and improve service delivery [1][3] Company Overview - Walmart is a tech-powered omnichannel retailer, serving approximately 270 million customers weekly across over 10,750 stores and various eCommerce platforms in 19 countries, with a fiscal year 2025 revenue of $681 billion [5] - Broadcom is a global technology leader providing a wide range of semiconductor and enterprise software solutions, serving critical markets including cloud, data center, and enterprise software [4] Business Outcomes - The deployment of VMware Cloud Foundation will enhance consistency and reliability across Walmart's operations, optimizing resources and accelerating the rollout of new services [3][6] - Key benefits include enhanced agility and scalability, reduced operational complexity, simplified workload portability, and improved security and resilience [6]

Financial Data and Key Metrics Changes - Walmart International generates over $120 billion in net sales with $5.5 billion in EBIT, making it a significant segment for the company [3] - The company aims to reach a $200 billion GMV segment by 2028 and double its profit while increasing e-commerce penetration [14][15] Business Line Data and Key Metrics Changes - E-commerce accounts for nearly 25% of international net sales, with over 50% of sales in China being online [20] - The international segment is positioned as a growth driver for the enterprise, contributing positively to both top and bottom lines [12] Market Data and Key Metrics Changes - High growth markets identified include India, Mexico, and China, with a focus on unlocking omnichannel retail opportunities [8] - In India, e-commerce penetration is only about 9%, indicating significant growth potential [26] Company Strategy and Development Direction - The long-term goal for the international business includes entering new markets and growing profitability in existing ones [7] - The company is exploring marketplace entry strategies rather than traditional brick-and-mortar approaches [9] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of learning from past divestitures to strengthen the current portfolio [11] - The company is adapting its supply chain to build resiliency and diversify manufacturing bases in response to global challenges [18] Other Important Information - Walmart is focusing on digital inclusion in Mexico through initiatives like the Byte business, which offers digital connectivity at a discount [57] - The company is leveraging learnings from international markets to enhance its offerings and operational strategies [64] Q&A Session Summary Question: What are Walmart's long-term goals for the international business? - The company aims to curate high-growth markets and unlock omnichannel retail opportunities while remaining open to new market entries [8][9] Question: How does Walmart plan to improve profitability in international markets? - Management highlighted ambitions to double profits and increase e-commerce penetration while maintaining a focus on growth [14][15] Question: What challenges is Walmart facing in Mexico? - The company is addressing digital inclusion and competition while focusing on building a rich ecosystem for customer engagement [60][59] Question: How is Walmart adapting its supply chain in the current environment? - The company is building resiliency in its supply chain and diversifying manufacturing locations to mitigate risks [18][66] Question: What can be learned from the success of e-commerce in China? - Management noted the importance of quick delivery models and adapting successful strategies from China to other markets like India [44][45]

Core Insights - Target (TGT) reported favorable Q4 results but issued cautious guidance, leading to a 3% dip in stock price [1] - Despite the dip, Target shares are trading at a significant discount compared to competitors like Walmart (WMT) [1] Q4 Financial Performance - Q4 sales reached $30.91 billion, slightly above estimates of $30.76 billion but down from $31.91 billion year-over-year [2] - Comparable sales for existing stores grew by 1.5%, driven by strong traffic and digital performance [2] - Digital comparable sales increased by 8.7% during Q4, with same-day deliveries rising by 25% [2] - Q4 EPS was $2.41, exceeding expectations of $2.25 by 7%, compared to $2.94 per share in the same quarter last year [2][3] Full Year Results - For fiscal 2025, total sales decreased by approximately 1% to $106.57 billion, and annual earnings also fell by 1% to $8.86 per share [4] Guidance and Outlook - Target anticipates profit pressure in Q1 due to consumer uncertainty and tariff concerns [5] - Full-year EPS guidance for FY26 is projected at $8.80-$9.80, below the current Zacks Consensus of $9.34 per share [5] - Sales growth for FY26 is forecasted at 1%, below the current projection of $108.64 billion [7] - Zacks estimates suggest a 9% increase in EPS for FY27 and over 3% sales growth to $112.66 billion [5][7] Valuation and Market Position - Target's stock is currently around $116, with a forward P/E ratio of 12.5X, compared to Walmart's 36X [8] - Target's online sales growth is seen as promising, potentially leveling the competitive landscape with Walmart and capturing market share from Amazon (AMZN) [8]