Walmart (NASDAQ:WMT) Posts Earnings Results, Beats Expectations By $0.01 EPS

Walmart (NASDAQ:WMT) issued its earnings results on Thursday. The retailer reported $0.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.01, FiscalAI reports. The company had revenue of $190.66 billion for the quarter, compared to analysts’ expectations of $188.37 billion. Walmart had a net margin of 3.26% and a return on equity of 21.31%. The firm’s quarterly revenue was up 5.6% on a year-over-year basis. During the same quarter last year, the company posted $0.66 earnings per share. Walmart updated its FY 2027 guidance to 2.750-2.850 EPS and its Q1 2027 guidance to 0.610-0.610 EPS.

Here are the key takeaways from Walmart’s conference call:

• Consolidated revenue rose 4.9% in constant currency with e‑commerce up 24%, and adjusted operating income grew 10.5% as all three segments expanded profits faster than sales.
• Management issued FY27 guidance of 3.5–4.5% sales growth and 6–8% operating income growth, provided EPS guidance of $2.75–2.85, and the board authorized a $30 billion share‑repurchase program.
• Walmart is scaling AI/agentic commerce (Sparky) and partnerships with OpenAI/Alphabet; Sparky users have ~35% higher average order value and fast delivery (under 3 hours) usage grew over 60%, boosting digital economics.
• Inventory discipline and automation are improving efficiency—inventory rose only 2.6% (about half the pace of sales growth) with automated DCs/FCs and store tech enhancing productivity and supporting margin expansion.
• Company cautioned on near‑term risks including tariff pressure, elevated claims expense that was a ~300 bps drag last year, and Maximum Fair Pricing on drugs expected to be about a 100 bps headwind for the full year.

Walmart Price Performance

Shares of Walmart stock traded up $0.28 on Thursday, hitting $126.90. 22,192,587 shares of the company traded hands, compared to its average volume of 38,841,512. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.24 and a current ratio of 0.80. The stock has a market capitalization of $1.01 trillion, a P/E ratio of 44.51, a price-to-earnings-growth ratio of 4.93 and a beta of 0.65. Walmart has a 52 week low of $79.81 and a 52 week high of $134.69. The business has a 50-day simple moving average of $119.05 and a 200 day simple moving average of $108.98.

Trending Headlines about Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Q4 results beat modestly: EPS $0.74 vs. $0.73 consensus and revenue $190.7B (up 5.6% YoY); eCommerce +24%, Walmart Connect/ad business strong and operating income grew double digits — evidence of healthy holiday execution. MarketBeat Earnings Report
• Positive Sentiment: Board raised the annual dividend 5% to $0.99 per share (53rd consecutive year of increases), which supports the income/total‑return thesis for long‑term investors. Dividend Release
• Positive Sentiment: Analysts and institutions showed support: Argus upgraded to Strong Buy and firms (DA Davidson reaffirmed buy) maintained bullish price targets; several funds disclosed stake increases ahead of earnings. Argus Upgrade (via Zacks) DA Davidson Note
• Neutral Sentiment: New CEO John Furner’s first report emphasizes a measured, conservative approach as he “keeps the ship steady” — reassuring for long‑term stability but not an immediate catalyst. Reuters: Furner-era Begins
• Neutral Sentiment: Technical/strategic commentary: some market analysts call the post‑earnings pullback a buying opportunity (support cited in $120–$110 range), while others note valuation is elevated after a long rally. MarketBeat: Pullback Opportunity
• Negative Sentiment: Management issued conservative guidance: FY‑2027 EPS guidance of $2.75–2.85 and Q1 EPS of $0.61 came in below consensus (~$2.94 for FY), which trimmed upside expectations and is the primary reason the stock declined. Zacks: Q4 & Guidance Analysis
• Negative Sentiment: Market reaction: shares plunged in pre‑market trade (reported drops ~3%) as investors focused on the cautious profit outlook despite a solid holiday quarter — short‑term selling pressure follows the guidance miss. ProactiveInvestors: Shares Fall After Outlook

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. The Goldman Sachs Group set a $121.00 price objective on shares of Walmart and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Evercore reiterated an “outperform” rating and set a $130.00 price target (up previously from $125.00) on shares of Walmart in a research note on Tuesday, February 3rd. Telsey Advisory Group restated an “outperform” rating and issued a $135.00 price objective on shares of Walmart in a research note on Thursday, February 12th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Walmart in a report on Wednesday, January 21st. Finally, Jefferies Financial Group restated a “buy” rating and issued a $132.00 price target on shares of Walmart in a research report on Tuesday, February 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Walmart currently has a consensus rating of “Moderate Buy” and an average target price of $128.59.

Insiders Place Their Bets

In other Walmart news, EVP Donna Morris sold 76,181 shares of the company’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $123.79, for a total transaction of $9,430,445.99. Following the sale, the executive vice president directly owned 402,072 shares in the company, valued at $49,772,492.88. This represents a 15.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP John D. Rainey sold 20,000 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $122.27, for a total value of $2,445,400.00. Following the completion of the sale, the executive vice president directly owned 506,764 shares of the company’s stock, valued at $61,962,034.28. The trade was a 3.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 210,441 shares of company stock worth $25,009,289. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Walmart

Institutional investors and hedge funds have recently modified their holdings of the business. Birchwood Financial Partners Inc. purchased a new position in Walmart in the 4th quarter worth about $50,000. Alpine Woods Capital Investors LLC purchased a new stake in shares of Walmart in the fourth quarter valued at approximately $269,000. Strive Financial Group LLC purchased a new position in Walmart during the 4th quarter worth $2,522,000. Ameriflex Group Inc. lifted its holdings in shares of Walmart by 38.3% in the 4th quarter. Ameriflex Group Inc. now owns 7,834 shares of the retailer’s stock worth $873,000 after buying an additional 2,168 shares during the period. Finally, Widmann Financial Services Inc. raised its holdings in shares of Walmart by 13.7% in the fourth quarter. Widmann Financial Services Inc. now owns 7,455 shares of the retailer’s stock valued at $831,000 after acquiring an additional 900 shares in the last quarter. 26.76% of the stock is owned by institutional investors.

About Walmart

Walmart is a multinational retail corporation that operates a broad portfolio of store formats and digital services. Its core business includes large-format supercenters, discount department stores, neighborhood grocery stores and a membership warehouse chain, Sam’s Club. The company’s merchandising mix covers groceries, household goods, apparel, electronics and pharmacy services, supplemented by private-label products and category-specific offerings. Walmart pairs its physical store network with online platforms and mobile applications to provide omnichannel shopping, fulfillment and delivery options for consumers and businesses.

The company was founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962; it is headquartered in Bentonville, Arkansas.