Walmart Sees 27% E-Commerce Surge, Launches $30 Billion Buyback
Walmart reported fourth-quarter net sales of $190.7 billion (+5.6%) and adjusted EPS of $0.74 (+12.1%), driven by 27% growth in US e-commerce. The retailer launched a $30 billion buyback, guided Q1 EPS at $0.63-$0.65 versus $0.69 expected, and CFO Rainey said food prices may decline, boosting produce basket sizes by 25%.
1. Fourth-Quarter Performance
In Q4, Walmart’s net sales climbed 5.6% to $190.7 billion while adjusted EPS rose 12.1% to $0.74. All segments saw operating profit growth outpacing sales, with US e-commerce up 27% and Sam’s Club digital sales surging 23%.
2. Guidance and Capital Allocation
Management unveiled a new $30 billion share repurchase plan and issued conservative guidance for Q1 EPS of $0.63–$0.65, below the $0.69 consensus, and full-year EPS of $2.75–$2.85 versus $2.97 estimates, reflecting a cautious stance for 2027.
3. Food Inflation Outlook
CFO John David Rainey noted that food inflation is easing and could turn deflationary, citing significant egg price declines. He highlighted that produce drives baskets 25% larger, meaning lower food costs could enhance customer engagement and spending.