The non-controlling interest is expected to remain stable, and adjusted EPS is forecast between $2.50 and $2.60, reflecting a $0.05 currency headwind. Capital expenditures are anticipated to be 3.0 to 3.5 per cent of net sales.
Walmart Inc expects FY26 net sales growth of 3-4 per cent (cc) with adjusted EPS at $2.50-$2.60.
For Q1 FY26, its net sales growth is projected at 3-4 per cent and adjusted EPS at $0.57-$0.58.
The company’s FY25 revenue reached $681 billion, up 5.1 per cent, with operating income rising 8.6 per cent.
Its Q4 revenue was $180.6 billion, up 4.1 per cent, with strong e-commerce and advertising growth.
Fiscal 2025 (FY25) financial
Walmart has generated a revenue of $681.0 billion in FY25 ended January 31, 2025, up 5.1 per cent, or 5.6 per cent on constant currency. The operating income of the company increased 8.6 per cent (9.7 per cent cc) to reach $2.3 billion, outpacing sales growth.
The global inventory increased 2.8 per cent, including a 3.0 per cent rise for Walmart US, with in-stock levels remaining strong. Walmart also announced a 13 per cent dividend increase to $0.94 per share, the largest hike in over a decade, Walmart Inc said in a press release.
For FY25, Walmart International achieved net sales of $121.9 billion, up 6.3 per cent from $114.6 billion in FY24. On a constant currency basis, international net sales reached $125.1 billion, reflecting a 9.1 per cent growth.
The operating income rose to $5.5 billion, a 12.1 per cent increase, while on a constant currency basis, it climbed 17.0 per cent to $5.7 billion. Growth was driven by improved e-commerce economics and a favourable business mix.
In the second half (H2) of FY25, e-commerce sales grew by 20 per cent, and the advertising business expanded by 26 per cent, maintaining similar growth levels as in the first half. Currency rate fluctuations had an adverse impact on full-year sales and operating income, reducing them by $2.0 billion and $0.2 billion, respectively.
“Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an e-commerce business driven by faster delivery times. We’re gaining market share, our top line is healthy, and we are in great shape with inventory. We will stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better,” said Doug McMillon, president and chief-executive officer (CEO), Walmart.
Fourth quarter (Q4) financial
In Q4 FY25, the company’s revenue of $180.6 billion was up 4.1 per cent, or 5.3 per cent, with gross margin rate up 53 bps, led by Walmart US. The company’s operating income increased $0.6 billion, or 8.3 per cent, adjusted up 9.4 per cent (cc) due to higher gross margins and growth in membership income, also benefitted from improved economics in e-commerce.
The company’s adjusted EPS of $0.66 excludes the effect, net of tax, from a net loss of $0.02 on equity and other investments as well as $0.01 from the proceeds of an opioid-related legal settlement.
The global e-commerce sales grew 16 per cent, led by store fulfilled pickup and delivery and US marketplace. The global advertising business grew 29 per cent, including 24 per cent for Walmart Connect in the US.
Walmart International reported net sales of $32.2 billion, slightly lower than $32.4 billion in Q4 FY24, reflecting a decline of 0.7 per cent. On a cc basis, international net sales stood at $34.3 billion, marking a 5.7 per cent increase year-over-year. Operating income remained steady at $1.4 billion but saw a 10.1 per cent rise to $1.6 billion on cc basis. Growth in net sales (cc) was driven by strong performances in China, Walmex, and Canada, with increased transaction counts and unit volumes across markets. However, the timing of Flipkart’s The Big Billion Days (BBD) event impacted growth in Q4.
The company’s e-commerce international sales grew by 4 per cent, and the advertising business expanded by 10 per cent, though both were affected by the BBD timing. Excluding Flipkart, e-commerce sales showed strong growth and increased penetration in all markets. Currency fluctuations negatively impacted sales by $2.0 billion and operating income by $0.2 billion.
First quarter (Q1) FY26 Outlook
For the first quarter of fiscal 2026, Walmart expects net sales growth of 3 to 4 per cent on a constant currency basis, with a 100-bps headwind from the lapping leap year. Adjusted operating income is projected to rise 0.5 to 2.0 per cent, factoring in a 250-bps leap year impact. Adjusted EPS is expected to range between $0.57 and $0.58, reflecting a $0.02 currency headwind.
Fibre2Fashion News Desk (SG)