Walmart (WMT) Q4 2025 Earnings

Walmart’s Earnings Report: A Barometer of Consumer Health

Walmart will report its latest quarterly earnings before the bell on Thursday, with investors seeking to determine if softer retail sales in January were a temporary blip or a sign of a larger trend. As the top grocer in the U.S., Walmart is often viewed as a barometer of consumer health.

Retail sales for January came in weaker than expected, with a 0.9% decline, below the Dow Jones estimate of a 0.2% decline. This has set off alarm bells for some investors, but retail chains, including Restaurant Brands’ Burger King and Popeyes, have blamed short-term factors for the drop.

Holiday data, on the other hand, showed strong sales growth, with retail sales rising 3.8% year over year to total $964.4 billion in November and December. This reflects a return to more typical pre-pandemic gains, with average sales growth during the holiday season being 3.6% from 2010 to 2019.

Walmart’s online sales have been climbing, with 10 straight quarters of double-digit gains. The company’s advertising business and third-party marketplace have also been driving higher margins. Additionally, Walmart has attracted more customers with higher incomes, with CEO Doug McMillon noting that households earning more than $100,000 drove 75% of market share gains in the third quarter.

Some investors have raised their expectations for Walmart, with Simeon Gutman, a retail analyst for Morgan Stanley, increasing the company’s price target to $153, citing the retailer’s newer and more profitable business segments, including its advertising business and subscription-based membership program Walmart+.

As of Wednesday’s close, shares of Walmart are up about 83% over the past year, outpacing the approximately 4% gains of the S&P 500 during the same period.

What to Expect from Walmart’s Earnings Report

• Earnings per share: 64 cents
• Revenue: $180.01 billion

Conclusion

Walmart’s earnings report will provide valuable insights into the state of consumer health and the impact of federal policy decisions, such as tariffs, on the retail industry. While some investors are concerned about the softer retail sales in January, others believe that short-term factors are at play. With Walmart’s strong online sales and growing advertising business, the company’s future outlook remains promising.

FAQs

Q: What is the expected revenue for Walmart’s fiscal fourth quarter?
A: $180.01 billion

Q: What is the expected earnings per share for Walmart’s fiscal fourth quarter?
A: 64 cents

Q: Why did retail sales decline in January?
A: Retail sales declined 0.9%, below the Dow Jones estimate of a 0.2% decline, due to short-term factors such as winter storms and consumers taking a break after the holidays.