"Walmart (NASDAQ: WMT) just gave investors a fresh set of results and a new outlook, and the numbers were solid. Revenue rose 5.6% in its fiscal fourth quarter (the period ended on Jan. 31, 2026), and adjusted earnings per share came in at $0.74, up more than 12% year over year. Both figures came in ahead of analysts' consensus forecasts. But I'm not buying the stock here."
"To Walmart's credit, its momentum is notable -- especially for a retailer of its size. Its global e-commerce sales rose 24% in the quarter. Even more, these e-commerce sales notably represented a meaningful 23% of total net sales. Additionally, Walmart U.S. comparable sales, a metric that compares stores open at least a year and excludes fuel, increased 4.6% and management said transactions grew 2.6% in Walmart U.S., suggesting customer traffic is still driving growth, not just higher prices."
"Higher-margin lines are showing up more clearly, too. The company said its global advertising business grew 37% in the quarter, including advertising revenue from its TV operating system platform VIZIO. And Walmart Connect -- the company's retail media business unit and advertising platform -- in the U.S. grew 41%. Finally, the company's membership fee revenue grew 15.1% globally."
Walmart's fiscal fourth-quarter revenue rose 5.6% and adjusted EPS increased over 12% to $0.74, both beating analysts' consensus. Global e-commerce sales grew 24%, accounting for 23% of total net sales, while Walmart U.S. comparable sales rose 4.6% and transactions grew 2.6%, indicating traffic-driven growth. Global advertising revenue increased 37%, with Walmart Connect U.S. up 41% and membership fee revenue up 15.1% globally. Management offered guidance calling for continued steady growth in fiscal 2027. Current stock valuation implies minimal room for slowdown or execution missteps, and a lower-valuation competitor like Amazon presents an alternative investment.
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