Walmart Q4 2025 Earnings Report: Strong Growth and Market Expansion
- Hardik Shah
- Feb 20
- 3 min read
TLDR
Revenue growth: 4.1% YoY, reaching $180.6 billion.
Profitability surge: Operating income grew 8.3%, outpacing revenue.
eCommerce strength: Global eCommerce sales surged 16%, driving digital transformation.
Financial Results
Walmart Inc. (NYSE: WMT) operates as a global omnichannel retailer, leveraging its extensive store network, digital platforms, and supply chain capabilities. The company serves customers through Walmart U.S., Walmart International, and Sam’s Club, with a growing presence in eCommerce and digital advertising.
Walmart Earnings For Q4 FY25:
Revenue: $180.6 billion (+4.1% YoY; +5.3% in constant currency).
Operating Income: $7.9 billion (+8.3% YoY; +9.4% in constant currency).
Net Income: $5.4 billion (-4.5% YoY, reflecting currency headwinds and acquisition-related costs).
Adjusted EPS: $0.66 (vs. $0.68 YoY).
eCommerce Growth: +16% globally, led by pickup & delivery services and marketplace expansion.
Advertising Growth: +29% globally, with Walmart Connect U.S. up 24%.
Inventory Growth: +2.8%, reflecting improved in-stock levels.
For FY25, Walmart posted $681.0 billion in revenue, with operating income up 8.6%. The company also announced a 13% dividend increase, the largest in over a decade.
Management Outlook for FY26
Net sales growth of 3% to 4%.
Operating income growth of 3.5% to 5.5%.
EPS in the range of $2.50 to $2.60.
Capital expenditures at 3.0% to 3.5% of net sales.
The VIZIO acquisition and a leap year headwind will weigh on results in early FY26.
"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." - Doug McMillon, CEO
Operational Performance
Industry Trends & Consumer Behavior
Macroeconomic resilience: Despite economic uncertainties, Walmart continued to see strong consumer demand, particularly in grocery and health & wellness.
Market share gains: The company reported increased engagement across income groups, with upper-income households driving a significant portion of share gains.
Digital adoption: The success of Walmart’s eCommerce strategy, including same-day pharmacy delivery and Sam’s Club’s new shipping options, has boosted customer convenience and sales.
Q4 Highlights by Segment
Walmart U.S.: Sales up 5.0%, with eCommerce up 20%. Transaction growth (2.8%) outpaced ticket growth (1.8%).
Walmart International: Sales down 0.7% YoY due to currency effects, but up 5.7% in constant currency.
Sam’s Club U.S.: Net sales grew 5.7%, driven by 6.8% comp sales growth (ex. fuel) and 24% eCommerce growth.
"Our business model is delivering as designed. This is the second consecutive year of 5%+ sales growth and operating income growing meaningfully faster." - David Rainey, CFO
Strategic Initiatives
Walmart continues to invest in long-term growth, focusing on:
Omnichannel Expansion: Enhancing store-fulfilled delivery, marketplace, and eCommerce capabilities.
Supply Chain Automation: Driving efficiencies with AI-powered fulfillment centers.
Advertising & Membership Growth: Walmart Connect and Sam’s Club Plus memberships saw strong double-digit increases.
AI & Technology Investments: The company is leveraging AI tools to enhance merchant decision-making and streamline operations.
M&A Activity: The VIZIO acquisition is expected to strengthen Walmart’s digital advertising capabilities.
"If I could change anything about how we’re perceived today, it would be that more people know about our breadth of assortment online and our increasing delivery speed." - Doug McMillon, CEO
The Bottom Line
Walmart delivered a strong Q4 and FY25, with sales growth, profitability expansion, and digital acceleration. While headwinds from the VIZIO acquisition and macroeconomic uncertainty remain, management remains confident in continued market share gains and long-term growth. Investors can expect disciplined investments in technology, advertising, and automation to drive future earnings.
Comments