Walmart Q4 Revenue Hits $190.7B as E-Commerce Sales Top $150B
Walmart reported Q4 total revenue rose 5.6% to $190.7 billion with U.S. comparable sales up 4.6% year-over-year and operating income increasing 10.8% to $800 million, while e-commerce sales topped $150 billion for the first time after 27% growth drove 23% of total sales. Management forecast fiscal-year adjusted earnings of $2.75 to $2.85 per share, below analysts' $2.97 average, but highlighted profitable e-commerce with double-digit incremental margins and AI-powered ‘Sparky’ boosting average order value by 35% as adoption reached half of mobile app users.
1. Q4 Financial Performance
Walmart reported Q4 revenue of $190.7 billion, up 5.6% year-over-year, driven by a 4.6% increase in U.S. comparable sales. Operating income rose 10.8% to $800 million as improved inventory management and business mix lifted margins.
2. E-commerce Growth and Profitability
Walmart's e-commerce sales grew by 27% year-over-year, reaching over $150 billion for the first time and accounting for 23% of total sales. The e-commerce segment exceeded breakeven with double-digit incremental margins each quarter, supported by rapid store-fulfilled pickup and delivery channels.
3. Fiscal-Year Earnings Guidance
The company forecast adjusted earnings of $2.75 to $2.85 per share for the fiscal year, below the $2.97 consensus, citing the need for flexibility given economic headwinds. Management emphasized a cautious outlook while expecting continued market share gains and margin improvements.
4. AI-Powered 'Sparky' Initiative
Walmart's AI shopping assistant 'Sparky' has been adopted by 50% of mobile app users, driving a 35% higher average order value. The agentic commerce tool integrates fast delivery and personalization to enhance customer engagement and support omnichannel growth.