Walmart (WMT) shares have outperformed the market, brick-and-mortar peers, Amazon (AMZN), and the Magnificent 7 group. The company will report quarterly results on February 19th, with strong optimism due to its digital business growth and market share gains among higher-income households.

E-commerce accounts for 15% of Walmart’s total sales, expected to double over time. The company’s focus on essentials and low prices, along with gains in e-commerce, third-party fulfillment, and advertising, contribute to its success. Walmart’s e-commerce business in the U.S. is now profitable and expected to boost earnings in the future.

Walmart is expected to report $0.73 EPS on $189.9 billion in revenues, with stable estimates. The company’s commitment to maintaining a price advantage over rivals, combined with its digital strategy and market share gains, positions it well in the retail sector.

In the Retail sector 2025 Q4 earnings season, results from 13 of the 31 S&P 500 retailers show a 6.3% earnings increase year-over-year. Revenue is up 11.6%, with 46.2% beating EPS estimates and 76.9% exceeding revenue estimates.

Q4 earnings for 371 S&P 500 members are up 12.8% year-over-year on 8.8% higher revenues. 75.5% beat EPS estimates, and 72.5% surpassed revenue estimates. Earnings growth is expected to continue, with more companies reporting results this week.

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Read more at Nasdaq: Previewing Retail Sector Earnings: A Closer Look