Walmart Inc. announced its fourth-quarter results for fiscal year 2024, showcasing impressive growth metrics; yet, its stock faced a setback due to cautious guidance for the upcoming year. This American retail giant, identifying itself as the largest importer of containerized goods, revealed a consolidated revenue of $182.6 billion, marking a 5.3% rise compared to the previous year, exceeding Wall Street expectations of $180.21 billion.
Despite the good news, the stock of Walmart (NYSE: WMT) dropped by 6% following the announcement, as investors focused on the company's subdued outlook for the 2026 fiscal year. Analysts noted the company's adjusted earnings per share rose to $0.66, surpassing the anticipated $0.65. Sales at Walmart U.S. stores grew by 4.6%, attracting more affluent shoppers, which again outperformed the estimated growth of 4.36%.
E-commerce sales, another bright spot for Walmart, increased by 2.9%, slightly above the expectations of 2.88%. Growth was also observed within the company’s subscription service, Walmart+, which saw memberships surge by 33% during the quarter.
For the full fiscal year of 2025, Walmart's total revenue reached $684.2 billion, overshadowing analysts' forecasts of $680.70 billion. The adjusted earnings per share for the year settled at $2.51, also outpacing the estimated $2.49. U.S. store sales reflected a modest increase of 4.5%, which fell short of the anticipated 4.62% growth.
During the earnings call, CFO John David Rainey provided insights on the company’s upcoming projections. He remarked, "Walmart has been operating in an extremely dynamic backdrop for several years, and we expect this year to be no different." He elaborated on potential uncertainties affecting consumer behavior and global economic conditions, emphasizing, "Our new forecasts assume a relatively stable macroeconomic environment, but they acknowledge uncertainties persist..." This outlook raised concerns among investors, leading to the decline of Walmart’s stock from $104.00 to $98.92 during pre-market trading.
Even with the stock dip, Walmart displayed remarkable resilience, with shares appreciating over 75% over the past year, significantly outpacing the S&P 500 index's 23% growth. The company’s strong holiday sales bolstered its quarterly earnings, and e-commerce sales experienced impressive growth, up by 20% year-over-year, propelled by its delivery and pickup services, as well as enhancements to its advertising platform.
Walmart's global advertising business performed well too, registering growth of 27% to reach $4.4 billion, with Walmart Connect accounting for 24% of this growth within the U.S. The company also reported greater efficiency within its operations, evidenced by improved gross margins driven by higher membership income and economic growth within eCommerce.
The conservative sales growth forecast for fiscal year 2026, projected to be between 3% and 4%, has stirred anticipation as the company prepares to navigate potential external challenges. Rainey concluded by outlining how significant changes in tax and trade policies could create adverse repercussions for Walmart’s performance.
Market analysts will remain vigilant on the impacts of increasing tariffs on imported goods from China and other countries, as Walmart continues adapting its sourcing strategies to minimize risk. With over 270 million customers visiting Walmart stores weekly across 19 countries, the retailer stands poised to tackle the economic pressures head-on, even as consumer sentiment fluctuates.
Walmart's ability to balance its extensive operational reach with growing demands from customers will likely play a pivotal role as it approaches the next fiscal year.