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

Walmart (NASDAQ:WMT) released its quarterly earnings results on Thursday. The retailer reported $0.74 earnings per share for the quarter, beating analysts’ consensus estimates of $0.73 by $0.01, FiscalAI reports. The company had revenue of $190.66 billion during the quarter, compared to the consensus estimate of $188.37 billion. Walmart had a net margin of 3.07% and a return on equity of 21.44%. The firm’s quarterly revenue was up 5.6% on a year-over-year basis. During the same period in the previous year, the business earned $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 NASDAQ:WMT opened at $122.99 on Friday. Walmart has a one year low of $79.81 and a one year high of $134.69. The company has a debt-to-equity ratio of 0.38, a current ratio of 0.79 and a quick ratio of 0.24. The company has a market cap of $980.25 billion, a price-to-earnings ratio of 44.89, a PEG ratio of 5.07 and a beta of 0.65. The firm has a 50 day simple moving average of $119.37 and a 200 day simple moving average of $109.26.

Walmart Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Investors 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 yield of 0.8%. The ex-dividend date is Friday, December 11th. Walmart’s dividend payout ratio is currently 32.87%.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Management highlights AI/automation and faster e‑commerce growth, which should support margin and productivity improvements over time. The future of retail is AI
• Positive Sentiment: Several brokers raised price targets or reaffirmed buy/outperform calls (Telsey, BTIG, Truist), which provides near‑term support and buyer interest. Telsey raises target
• Positive Sentiment: Board boosted shareholder returns — annual dividend raised to $0.99 and the company has been authorizing buybacks, which underpins cash‑return support. Dividend increase press release
• Neutral Sentiment: Institutional activity shows accumulation in recent quarters and some technical analysts view the current pullback as a buying opportunity around $120–$110. That can stabilize downside but may not trigger an immediate rally. MarketBeat buy thesis
• Neutral Sentiment: An EVP sold a small block (1,255 shares) disclosed on a Form 4 — immaterial relative to his total holdings and likely routine liquidity. SEC filing
• Negative Sentiment: Guidance disappointed — FY‑2027 EPS and Q1 guidance came in below consensus and management used cautious language; this guidance miss is the primary driver of today’s selloff. Q4 press release / slides
• Negative Sentiment: Valuation concerns and bearish commentary argue that expected operating‑income gains don’t fully justify high multiples, prompting some investors to trim positions. Seeking Alpha valuation critique
• Negative Sentiment: Competitive narrative: Amazon now surpasses Walmart in annual revenue — symbolic but it focuses investor attention on competitive pressure and growth strategy execution. Amazon surpasses Walmart
• Negative Sentiment: Limited analyst downgrades (HSBC cut to Hold) add to selling pressure from cautious funds. WMT Downgrade video

Wall Street Analyst Weigh In

WMT has been the subject of a number of recent analyst reports. Piper Sandler reiterated an “overweight” rating and set a $130.00 target price (up from $123.00) on shares of Walmart in a research report on Tuesday, February 3rd. UBS Group reaffirmed a “buy” rating and set a $147.00 price objective (up previously from $135.00) on shares of Walmart in a research report on Friday. Mizuho increased their price objective on shares of Walmart from $125.00 to $137.00 and gave the stock an “outperform” rating in a research note on Monday, February 9th. Royal Bank Of Canada set a $145.00 target price on shares of Walmart in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft set a $120.00 price target on shares of Walmart in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $132.53.

Insider Activity at Walmart

In related news, EVP John R. Furner sold 13,125 shares of the business’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $119.99, for a total transaction of $1,574,868.75. Following the sale, the executive vice president owned 727,155 shares in the company, valued at $87,251,328.45. The trade was a 1.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP David Chojnowski sold 7,000 shares of the stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $106.65, for a total value of $746,550.00. Following the completion of the transaction, the senior vice president owned 136,289 shares of the company’s stock, valued at $14,535,221.85. This represents a 4.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 211,696 shares of company stock valued at $25,176,467. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in WMT. Renaissance Group LLC boosted its position in Walmart by 0.9% during the 4th quarter. Renaissance Group LLC now owns 9,636 shares of the retailer’s stock worth $1,074,000 after buying an additional 83 shares during the period. Compass Capital Corp MA ADV lifted its holdings in shares of Walmart by 0.4% during the fourth quarter. Compass Capital Corp MA ADV now owns 21,322 shares of the retailer’s stock worth $2,375,000 after purchasing an additional 89 shares during the period. Investment Research Partners LLC grew its stake in shares of Walmart by 0.8% in the fourth quarter. Investment Research Partners LLC now owns 12,147 shares of the retailer’s stock worth $1,353,000 after purchasing an additional 94 shares during the last quarter. Vivaldi Capital Management LP grew its stake in shares of Walmart by 0.4% in the fourth quarter. Vivaldi Capital Management LP now owns 23,491 shares of the retailer’s stock worth $2,617,000 after purchasing an additional 96 shares during the last quarter. Finally, Hoxton Planning & Management LLC increased its holdings in Walmart by 1.9% in the fourth quarter. Hoxton Planning & Management LLC now owns 5,333 shares of the retailer’s stock valued at $594,000 after purchasing an additional 97 shares during the period. Institutional investors and hedge funds own 26.76% of the company’s stock.

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.