Earning Date, Transcript Summary & Report

Earnings Per Share Beat: Walmart Inc. reported an EPS of $0.66, exceeding expectations of $0.646, indicating strong financial performance.

Quarterly Sales and Income Growth: Sales growth for the quarter was 5.2%, with adjusted operating income up 9.4% in constant currency, showcasing effective cost management and operational efficiency.

Market Share Expansion: The company gained market share across various countries and income levels, reflecting strong customer loyalty and brand strength.

E-commerce Sales Growth: Walmart's e-commerce sales grew 16% in the fourth quarter, demonstrating successful digital transformation and customer engagement strategies.

Advertising Revenue Surge: Global advertising revenue increased by 27% to approximately $4.4 billion, highlighting the effectiveness of Walmart's advertising initiatives.

Membership Income Growth: Membership income grew 21% to about $3.8 billion, indicating strong performance in the membership segment, particularly in Sam's Club and Walmart Plus.

Comp Sales Growth: Walmart U.S. comp sales increased by 4.6%, with grocery and health and wellness categories showing significant growth, reflecting consumer demand for essential goods.

Pharmacy Services Integration: The company successfully integrated pharmacy services into its delivery offerings, enhancing customer convenience and satisfaction.

Supply Chain Automation Benefits: Walmart's investments in supply chain automation are expected to lower costs and improve service delivery, supporting the company's commitment to everyday low prices.

Dividend Increase Announcement: The company raised its dividend by 13%, the largest increase in over a decade, reinforcing its commitment to returning value to shareholders.

Currency Impact on Sales: Currency headwinds negatively impacted reported sales by approximately $3.2 billion or 50 basis points to growth, and pressured EPS by about $0.02.

SG&A Expense Deleveraging: SG&A expenses deleveraged 46 basis points in the quarter, primarily due to increased variable pay and higher marketing and utilities costs.

Sales Comparison Impact: The timing of Flipkart’s Big Billion Days event negatively affected year-over-year sales comparisons, impacting overall performance.

Wage Investment Impact on Profit: Wage investments at Sam’s Club are expected to pressure profit for a couple of quarters, despite positive member response tied to increased renewals.

Operating Income Growth Projection: Operating income guidance for fiscal year 2026 is projected to grow slower than sales at 3.5% to 5.5%, including headwinds from the VIZIO acquisition and lapping leap year effects.

Lower EPS Forecast: First quarter EPS is expected to be lower than last year, with a range of $0.57 to $0.58, including a headwind from currency of approximately $0.02 per share.