Walmart beats analyst estimates in Q4, but cautious outlook leads to a 7% drop.

From Nasdaq: 2025-02-25 02:39:59

Walmart’s Q4 results beat analyst estimates, with 4% y-o-y revenue growth, 9% y-o-y operating income increase, and 20% e-commerce sales surge. However, a cautious outlook led to a 7% drop in shares. FY’26 forecasts slower growth than FY’25, with net sales up 3-4% and adjusted operating income up 3.5-5.5%. Walmart’s stock is up 8% YTD compared to a 4% S&P 500 growth.

In Q4, Walmart’s transactions increased by 2.8%, with a 1.8% rise in average ticket. Revenue grew 4.1% y-o-y to $180.6 billion, and global advertising business saw a 29% increase. Adjusted EPS was $0.66, up 10% y-o-y. Walmart’s stock returns have been volatile, ranging from 2% in 2021 to 74% in 2024, compared to the Trefis High Quality Portfolio, which outperformed the S&P 500 with less volatility.

Walmart’s debt stands at $45.5 billion, with $9 billion in cash. The retailer forecasted FY’26 revenues at $704 billion, up 3% y-o-y. Quarterly U.S. comparable sales growth rates slowed throughout FY’25. Walmart’s valuation is projected at $98 per share for FY’26, with an expected EPS of $2.56 and a 38.4x P/E multiple. Walmart’s stock performance over the last four years has been compared to the S&P 500 and the Trefis Reinforced Value Portfolio.



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