Walmart tops Q4 expectations and extends dividend streak

BENTONVILLE, Ark. — Walmart ended fiscal 2026 with a strong fourth quarter, surpassing Wall Street expectations as gains in digital growth, store traffic, and advertising boosted performance across its U.S. and international operations.

For the quarter, revenue rose 5.6% to $190.7 billion, matching projections, while adjusted earnings per share slightly exceeded estimates. Operating income grew faster than sales, reflecting disciplined cost control and a continued shift toward higher-margin areas like advertising and memberships.

For the full fiscal year, Walmart reported revenue of $715.9 billion, slightly exceeding expectations, as the retailer continued to gain momentum in its omnichannel model. The company recently surpassed a $1 trillion market capitalization milestone.

U.S. Business Gains Share

CEO John Furner said the company experienced continued share gains, including among higher-income households, as customers increasingly rely on Walmart for both groceries and general merchandise.

U.S. comparable sales rose by 4.6% during the quarter, exceeding expectations, driven by increased traffic and ticket growth. E-commerce sales in the U.S. jumped 27%, marking the eighth straight quarter of over 20% growth. Key factors included store-fulfilled pickup and delivery, advertising, and marketplace growth, with expedited delivery channels growing by more than 50%.

Furner also noted that lower-income consumers keep facing pressure, with some households living paycheck to paycheck.

Sam’s Club and International

At Sam's Club, comparable sales grew by 4%, slightly under expectations. Transaction counts went up, though the average spend per visit declined. Membership numbers reached record highs, and digital tools like Scan & Go, curbside pickup, and delivery continued to grow in popularity.

International operations saw consistent growth in constant currencies, fueled by strong results in China, Walmex, and Flipkart. International operating income increased at a faster rate than sales, supported by a favorable business mix and higher memberships.

Diversified Profit Streams

Global e-commerce increased by 24% this quarter, while global advertising revenue rose 37%, including contributions from VIZIO. Walmart Connect in the U.S. grew 41%.

Membership fee revenue grew throughout the company, strengthening Walmart’s growing profit share beyond traditional retail margins. E-commerce now accounts for nearly a quarter of total sales.

Executives highlighted ongoing investments in automation and supply chain technology, which boost inventory efficiency, reduce costs to serve, and improve customer convenience.

Conservative Outlook, Confident Tone

Despite the Q4 beat, Walmart issued conservative guidance for fiscal 2027, projecting moderate revenue growth and earnings below Wall Street expectations.

CFO John David Rainey told investors that the company is taking a cautious approach due to macroeconomic uncertainty, citing weak consumer sentiment, hiring slowdowns, and ongoing debt burdens. He also mentioned that Walmart has raised guidance in each of the past three years and aims to beat its initial outlook.

In a separate announcement, the board approved a 5% increase in the annual dividend to $0.99 per share for fiscal 2027, maintaining the retailer’s 53rd consecutive year of dividend hikes.

With strong cash flow, expanding digital reach, and a diversified business mix, Walmart enters fiscal 2027 positioned as a tech-enabled, omnichannel retailer that balances disciplined execution with ongoing investment in long-term growth.