Walmart reports strong Q4, remains cautious on outlook
By Josh White
Date: Thursday 19 Feb 2026
(Sharecast News) - Walmart reported stronger-than-expected fourth-quarter sales on Thursday, driven by grocery demand and surging online growth, as newly-appointed chief executive John Furner began his tenure with a cautious outlook for the year ahead.
Revenue rose 5.6% to $190.7bn in the quarter ended in January, slightly ahead of analyst estimates, according to Reuters.
US comparable sales increased 4.6%, beating forecasts of around 4.2%, helped by a 27% jump in US online sales.
Global ecommerce sales rose 24% year on year, as the retailer continued to attract higher-income households with faster delivery options and an expanded third-party marketplace.
For the full year, Walmart's revenue reached a record $713.2bn.
However, the Financial Times noted that the figure was eclipsed for the first time by Amazon, which reported $716.9bn in annual revenue.
Walmart's stock had more than doubled over the past two years, lifting its market capitalisation above $1trn, as it benefited from inflation-weary consumers trading down and from investments in automation and artificial intelligence.
Quarterly operating profit rose 10.8% to $8.7bn, slightly below analyst expectations of $8.9bn, while net income fell 19.4% to $4.2bn, weighed down by changes in the fair value of certain investments.
Walmart's dominance in groceries, which account for about 60% of US sales, continued to underpin performance.
The company gained market share across income groups, with Reuters reporting that households earning more than $100,000 had been a key driver of growth for the past two years.
Advertising and membership revenues, including Walmart+, also supported margins.
Despite the strong quarter, Walmart issued conservative guidance.
The company forecast adjusted earnings per share of $2.75 to $2.85 for the financial year, below analyst expectations of roughly $2.96 to $2.97.
It projected consolidated net sales growth of 3.5% to 4.5%, broadly in line with its initial outlook for the previous year but below expectations of about 5%.
Chief financial officer John David Rainey told Bloomberg that it was "prudent to be somewhat measured with the outlook" given a "fluid, dynamic macro backdrop," citing uneven hiring and trade uncertainty.
President Donald Trump's on-off tariffs had disrupted supply chains across the retail sector, though Walmart largely mitigated the impact through its scale and supplier relationships, according to Reuters.
Walmart also announced a new $30bn share buyback programme.
At 0713 ET (1213 GMT), shares in Walmart were down 2.46% in premarket trading in New York at $123.50.
Reporting by Josh White for Sharecast.com.
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