Walmart’s Q4 Earnings Call: Our Top 5 Analyst Questions

Walmart’s Q4 Earnings Call: Our Top 5 Analyst Questions

Jabin Bastian

Thu, February 26, 2026 at 6:13 PM GMT+9 4 min read

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WMT

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Walmart’s fourth quarter was marked by robust digital growth and continued market share gains, earning a positive reaction from investors. Management attributed the performance to a strong omnichannel strategy, as e-commerce sales grew 24% globally and new technology investments improved inventory and delivery speeds. CEO John Furner highlighted that customers using Walmart’s AI-powered shopping assistant, Sparky, placed larger orders, saying, “Customer engagement is up, and customers who use Sparky have an average order value that’s about 35% higher than non-Sparky customers.” The company also saw strength in fashion and general merchandise, with both in-store and online sales outperforming expectations. Inventory management improvements, automation, and a focus on higher-margin areas like advertising and membership further supported profit growth.

Is now the time to buy WMT? Find out in our full research report (it’s free).

Walmart (WMT) Q4 CY2025 Highlights:

**Revenue:** $190.7 billion vs analyst estimates of $190.6 billion (5.6% year-on-year growth, in line)

**Adjusted EPS:** $0.74 vs analyst estimates of $0.73 (1.8% beat)

**Adjusted EBITDA:** $12.45 billion vs analyst estimates of $12.27 billion (6.5% margin, 1.5% beat)

**Revenue Guidance for Q1 CY2026** is $172.2 billion at the midpoint, below analyst estimates of $174.5 billion

**Adjusted EPS guidance for the upcoming financial year 2027** is $2.80 at the midpoint, missing analyst estimates by 5.4%

**Operating Margin:** 4.6%, in line with the same quarter last year

**Locations:** 10,955 at quarter end, up from 10,771 in the same quarter last year

**Same-Store Sales** rose 4.4% year on year, in line with the same quarter last year

**Market Capitalization:** $1.00 trillion

While we enjoy listening to the management’s commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Walmart’s Q4 Earnings Call

**Simeon Gutman (Morgan Stanley)** asked how Agentic Commerce and Sparky affect customer traffic and advertising. CEO John Furner and Dave Gagina highlighted increased engagement and higher order values, with management expecting further AI-driven improvements.

**Michael Lasser (UBS)** questioned how unanticipated costs like tariffs and claims were incorporated into guidance. CFO John David Rainey explained the company’s measured approach and the desire to maintain maximum flexibility amid economic uncertainty.

**Greg Melich (Evercore ISI)** inquired about inflation and drug price legislation effects. Rainey acknowledged that maximum fair pricing is a headwind, but emphasized ongoing efforts to mitigate inflation and gain share across income demographics.

**Kelly Bania (BMO Capital Markets)** sought more detail on advertising growth and future runway. Rainey said advertising growth is increasingly driven by marketplace and the Visio acquisition, and that Walmart’s advertising share remains well below best-in-class peers.

**Corey Tarlowe (Jefferies)** asked how store versus e-commerce trends will impact margins. Furner and Gagina stressed the importance of omnichannel integration and ongoing store remodels to support both physical and digital sales.

 






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Catalysts in Upcoming Quarters

In the coming quarters, StockStory analysts will be watching (1) the pace of adoption for AI-driven tools like Sparky and the impact on digital engagement, (2) the rate at which automation and supply chain upgrades translate into improved margins and inventory efficiency, and (3) the continued growth of high-margin segments such as advertising and membership. Other key markers will include the company’s ability to navigate pharmacy pricing pressures and consumer demand trends across income levels.

Walmart currently trades at $126.04, in line with $126.62 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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