Walmart (WMT) Leverages AI to Fulfill Pet Wishes This Holiday Season
Walmart's AI Tools: Walmart has launched new AI-powered tools to assist sellers in competing with Amazon during the holiday season, enhancing operations and increasing sales efficiency.
Seller Incentives: The retail giant is offering various incentives for sellers, including reduced referral fees on specific product categories, to encourage more business during peak shopping times.
Expanded Delivery Services: Walmart Fulfillment Services is expanding Next-Day Delivery coverage in major U.S. cities, aiming to improve delivery speed and reliability for Marketplace items.
E-commerce Growth Goals: Walmart aims for e-commerce to account for 50% of total sales within five years, focusing on customer experience and seller success to capture market share from Amazon.
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- Strong Earnings Report: Walmart's Q4 non-GAAP EPS of $0.74 exceeded expectations by $0.01, with revenue reaching $190.7 billion, a 5.6% year-over-year increase that surpassed market expectations by $2.38 billion, demonstrating the company's resilience amid economic challenges.
- Robust E-commerce Growth: Global eCommerce sales surged 24%, primarily driven by store-fulfilled pickup and delivery services, indicating Walmart's successful digital transformation and further solidifying its market position.
- Thriving Advertising Business: Walmart's global advertising revenue grew by 37%, with Walmart Connect in the U.S. up 41%, which not only enhances the company's revenue streams but also strengthens its competitive edge in the advertising market.
- Cautious Future Outlook: The company projects net sales growth of 3.5% to 4.5% for FY27, below the market consensus of 5.01%, with adjusted EPS expected to be between $2.75 and $2.85, reflecting uncertainty regarding future economic conditions.
- Walmart's Fiscal Outlook: Walmart anticipates net sales growth of only 3.5% to 4.5% and adjusted earnings per share of $2.75 to $2.85, falling short of analysts' expectations of $2.96, resulting in a 3.7% drop in stock price, reflecting market concerns about future growth.
- Hims & Hers Acquisition: Hims & Hers Health announced its acquisition of Australian digital health company Eucalyptus for up to $1.15 billion, leading to a nearly 7% increase in stock price, indicating a proactive strategy in expanding market presence and service offerings.
- Deere Earnings Beat: Deere reported first-quarter earnings of $2.42 per share on revenues of $8 billion, exceeding analyst expectations, which drove a 5.3% increase in stock price, showcasing its strong performance and profitability in the agricultural equipment sector.
- DoorDash Order Growth: DoorDash reported a 32% year-over-year increase in total orders for the fourth quarter, and despite missing overall earnings estimates, the stock surged 10%, highlighting its growth potential in the competitive food delivery market.
- Dividend Increase: Walmart's Board of Directors approved an annual cash dividend of $0.99 per share for fiscal year 2027, representing a 5% increase from the previous year's $0.94, indicating strong confidence in future performance.
- Dividend Payment Schedule: The 2027 fiscal year dividend will be paid in four quarterly installments of $0.2475 per share, with payments scheduled for April, May, August, and December 2026, ensuring stable returns for investors.
- Sustained Dividend Policy: This marks the 53rd consecutive year that Walmart has increased its annual dividend, reflecting the company's commitment to a diversified capital returns strategy and bolstering investor confidence in its future growth.
- Company Scale and Impact: With fiscal year 2026 revenue of $713 billion and approximately 2.1 million associates worldwide, Walmart demonstrates its leadership in the retail sector and commitment to sustainability and corporate responsibility.
- Revenue Growth: Walmart's Q4 revenue reached $190.7 billion, up 5.6% year-over-year, with global eCommerce sales increasing by 24%, demonstrating the company's success in digital transformation and solidifying its market leadership.
- Profitability Improvement: Operating income rose by 10.8%, with adjusted growth at 10.5%, indicating significant achievements in cost control and efficiency enhancement, thereby boosting investor confidence.
- Share Repurchase Plan: The company announced a new $30 billion share repurchase authorization aimed at enhancing earnings per share by reducing the number of shares outstanding, reflecting management's confidence in future performance.
- Advertising Business Growth: Global advertising revenue grew by 37%, with Walmart Connect in the U.S. increasing by 41%, highlighting the company's success in multi-channel marketing and further driving overall revenue growth.
- Fed Meeting Minutes Analysis: The January meeting minutes from the Federal Reserve revealed significant disagreements among officials regarding future interest rates, with some discussing potential rate hikes to combat persistent inflation, yet the market maintains an outlook for two rate cuts this year, reflecting concerns over economic slowdown.
- Oil Price Surge Factors: Oil prices rose by 1.20% to $65.83 per barrel due to stalled indirect nuclear talks between Iran and the U.S., which could impact overall economic conditions and consumer spending.
- Bond Yield Dynamics: The 10-year Treasury bond yield stood at 4.10%, while the two-year bond yield was at 3.47%, indicating a cautious market sentiment regarding future interest rate policies, which may influence investors' asset allocation decisions.
- Market Performance Overview: The Dow Jones fell by 0.12%, the S&P 500 dropped by 0.08%, and the Nasdaq 100 decreased by 0.08%, reflecting uncertainty in the market regarding economic prospects, particularly in consumer and technology stocks.
- Stock Market Outlook: Stock futures are indicating a downward trend on Thursday.
- Investor Concerns: Investors are closely monitoring the rise in oil prices.
- Geopolitical Tensions: The increase in oil prices is linked to ongoing tensions with Iran.
- Market Reactions: The combination of these factors is influencing investor sentiment and market performance.











