Walmart Q4 Earnings Lifted by Digital Growth
Walmart Q4 earnings show accelerating eCommerce and advertising revenue, robust cash flow and expanded buybacks as a cautious FY27 outlook pressured shares.
KEY TAKEAWAYS
- Q4 revenue rose to $190.7 billion, up 5.6% year-over-year.
- Global eCommerce grew 24.0% and advertising revenue rose 37.0%, boosting higher-return revenue mix.
- Shares fell about 3.0% in premarket trading following the filing's cautious FY27 outlook.
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Walmart (WMT) reported Q4 earnings on Feb. 19, 2026, marking CEO John Furner’s first quarterly report and showing operational momentum. The company issued a cautious FY27 outlook that triggered a 3% premarket share decline.
Quarter Results and Cash Flow
The SEC filing showed total revenues of $190.7 billion and net sales of $188.9 billion for Q4 FY26, each up 5.6% year-over-year. Operating income rose 10.8% to $8.7 billion, outpacing sales growth. Gross margin expanded 13 basis points. Adjusted earnings per share (EPS) reached $0.74, exceeding consensus, while GAAP EPS fell to $0.53, reflecting a divergence between adjusted and GAAP results.
For the full fiscal year, Walmart generated $14.9 billion in free cash flow and $41.6 billion in operating cash flow, supporting capital allocation initiatives.
Digital Growth and Capital Returns
Walmart highlighted rapid digital acceleration, with global eCommerce sales rising 24% year-over-year to represent about 23% of net sales. Global advertising revenue increased 37%, boosted by the VIZIO acquisition, while Walmart Connect U.S. grew 41%. The company said, "Our results in Q4 FY26 illustrate the underlying strength of our business."
The SEC filing showed Walmart repurchased 85 million shares for $8.1 billion in FY26 and authorized a new $30 billion buyback program. The annual dividend rose to $0.99 per share, and capital expenditures totaled $26.6 billion. This mix of shareholder returns and reinvestment reflects management’s effort to balance higher-return digital initiatives with steady cash distributions.
Shares fell about 3% in premarket trading on Feb. 19, 2026, as investors reacted to the cautious FY27 outlook.
