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

Walmart (NASDAQ:WMT) announced its earnings results on Thursday. The retailer reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.01, FiscalAI reports. Walmart had a return on equity of 21.31% and a net margin of 3.26%.The company had revenue of $190.66 billion for the quarter, compared to analysts’ expectations of $188.37 billion. During the same quarter in the previous year, the firm earned $0.66 earnings per share. Walmart’s quarterly revenue was up 5.6% on a year-over-year basis. 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 Stock Performance

Shares of NASDAQ WMT traded down $3.16 during trading on Friday, reaching $121.71. 15,222,111 shares of the stock traded hands, compared to its average volume of 38,717,363. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.80 and a quick ratio of 0.24. The stock has a market capitalization of $970.06 billion, a P/E ratio of 42.62, a price-to-earnings-growth ratio of 4.99 and a beta of 0.65. Walmart has a 52-week low of $79.81 and a 52-week high of $134.69. The company has a 50-day moving average of $119.24 and a 200-day moving average of $109.09.

Walmart Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Stockholders of record on Friday, December 11th will be given a dividend of $0.2475 per share. This represents a $0.99 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, December 11th. Walmart’s dividend payout ratio is currently 32.87%.

Wall Street Analysts Forecast Growth

WMT has been the topic of a number of analyst reports. Evercore reaffirmed an “outperform” rating and set a $130.00 price objective (up from $125.00) on shares of Walmart in a report on Tuesday, February 3rd. DA Davidson set a $150.00 price target on shares of Walmart in a report on Friday. Morgan Stanley reaffirmed an “overweight” rating and issued a $135.00 price objective (up from $125.00) on shares of Walmart in a research report on Thursday, January 15th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $140.00 price objective (up previously from $126.00) on shares of Walmart in a research note on Wednesday, February 11th. Finally, Raymond James Financial restated an “outperform” rating on shares of Walmart in a research note on Wednesday, January 14th. One investment analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $132.00.

Insiders Place Their Bets

In other Walmart news, EVP John R. Furner sold 13,125 shares of the company’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $119.99, for a total transaction of $1,574,868.75. Following the sale, the executive vice president directly owned 727,155 shares of the company’s stock, valued at $87,251,328.45. This represents a 1.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Daniel J. Bartlett sold 1,255 shares of Walmart stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $133.21, for a total transaction of $167,178.55. Following the completion of the transaction, the executive vice president owned 586,329 shares of the company’s stock, valued at $78,104,886.09. The trade was a 0.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 211,696 shares of company stock worth $25,176,467 in the last ninety days. 0.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Walmart

A number of hedge funds and other institutional investors have recently bought and sold shares of WMT. T. Rowe Price Investment Management Inc. lifted its holdings in Walmart by 55.8% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 25,241 shares of the retailer’s stock worth $2,813,000 after purchasing an additional 9,041 shares in the last quarter. Birchwood Financial Partners Inc. purchased a new stake in shares of Walmart in the fourth quarter worth about $50,000. Alpine Woods Capital Investors LLC purchased a new stake in shares of Walmart in the fourth quarter worth about $269,000. Strive Financial Group LLC bought a new position in shares of Walmart in the fourth quarter valued at approximately $2,522,000. Finally, Ameriflex Group Inc. grew its stake in Walmart by 38.3% during the fourth quarter. Ameriflex Group Inc. now owns 7,834 shares of the retailer’s stock valued at $873,000 after acquiring an additional 2,168 shares in the last quarter. Institutional investors own 26.76% of the company’s stock.

Trending Headlines about Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart is leaning into AI and automation that management says is already boosting productivity and e‑commerce growth — a thematic bullish story for long‑term margin and market‑share upside. The future of retail is AI
• Positive Sentiment: Analysts are raising targets and reiterating buy/outperform calls (Telsey to $140, BTIG reaffirmed buy), supporting upside expectations and providing near‑term demand for shares. Telsey raises target
• Positive Sentiment: Board raised shareholder returns — Walmart increased the annual dividend (to $0.99) and authorized a fresh buyback ($30B reported elsewhere), which underpins cash‑return support for the stock. Dividend increase press release
• Neutral Sentiment: Institutional buying and technicals: coverage shows increased institutional accumulation and technical analysts highlight a pullback to the $120–$110 area as a buying opportunity — this can stabilize downside but may not spark immediate rallies. MarketBeat buy thesis
• Neutral Sentiment: An executive sold a modest block of shares (Form 4 disclosure); size is small relative to insider holdings and typical for diversification/liquidity, so limited signal. SEC filing
• Negative Sentiment: Guidance disappointed: Walmart beat Q4 results (EPS $0.74, revenue $190.7B) but set FY27 EPS and Q1 guidance below Street consensus, and management used cautious language — the guidance miss is the primary driver of the pullback. Q4 press release / slides
• Negative Sentiment: Valuation concerns and bearish takes: some commentators argue improved operating income growth doesn’t justify current multiples (calls to hold/sell), adding selling pressure among valuation‑sensitive investors. Seeking Alpha valuation critique
• Negative Sentiment: Competitive symbolism: Amazon overtook Walmart in annual revenue — largely symbolic but it reinforces competitive narrative and investor focus on market position and growth initiatives. Amazon surpasses Walmart

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.