Walmart posts solid Q4, expands dividend streak to 53 years

BENTONVILLE, Ark. — Walmart closed fiscal 2026 with a fourth-quarter earnings beat, consistent e-commerce growth, and a 5% dividend increase, marking the 53rd consecutive year of dividend hikes. This underscores the retailer’s confidence even as it offered cautious guidance for fiscal 2027.

Q4 FY26 Results

For the quarter ended January 31:

Revenue: $190.7 billion, up 5.6%, in line with expectations
Adjusted EPS: $0.74, topping the $0.73 consensus
Operating income: up 10.8%
Global e-commerce growth: 24%
Global advertising revenue: up 37%, including VIZIO; Walmart Connect U.S. up 41%

Comparable sales growth (excluding fuel):

Walmart U.S.: +4.6%
Sam’s Club U.S.: +4.0%

Full-year FY26 revenue reached $715.9 billion, slightly exceeding expectations, with adjusted EPS of $2.64, one cent above forecasts. Constant-currency revenue was $713.2 billion, consistent with projections.

Walmart’s market capitalization recently exceeded $1 trillion, highlighting its scale after Amazon previously edged past it in annual revenue.

CEO John Furner highlighted continued share gains across income cohorts, particularly in grocery and general merchandise, including households earning more than $100,000.

U.S. e-commerce sales jumped 27%, marking the eighth consecutive quarter above 20% growth. Gains were driven by store-fulfilled pickup and delivery, marketplace expansion and advertising. Sales through expedited store-fulfilled delivery channels rose more than 50% in the quarter.

At the same time, Furner acknowledged pressure among lower-income consumers, noting that some households earning under $50,000 continue to manage spending paycheck to paycheck.

Sam’s Club saw 4% comp growth, with higher traffic but softer spend per visit. Membership reached record levels, and digital tools such as Scan & Go, curbside pickup and delivery continued to gain adoption.

International operations posted constant-currency net sales growth of 7.5%, with operating income up roughly 26% on a constant-currency basis, led by China, Walmex and Flipkart.

Cash Flow, Returns and Dividend

Walmart reported $41.6 billion in operating cash flow and $14.9 billion in free cash flow for the year.

The board approved a 5% increase in the annual dividend to $0.99 per share for FY27, marking the 53rd straight year of dividend hikes. The dividend will be paid in four quarterly installments of $0.2475.

“Dividends continue to be a part of our diversified capital returns approach. We’re proud to be increasing our annual dividend for the 53rd consecutive year. This decision is a proof point of our continued confidence in our business performance and forward momentum,” said CFO John David Rainey.

Conservative FY27 Outlook

Despite the Q4 beat, Walmart issued cautious guidance:

Q1 FY27 revenue growth: 3.5%–4.5%
Q1 adjusted EPS: $0.63–$0.65
FY27 revenue growth: 3.5%–4.5%
FY27 adjusted EPS: $2.75–$2.85

Those projections fall below Wall Street expectations.

Rainey told investors that the company is adopting a cautious approach due to macroeconomic uncertainty, pointing to hiring slowdowns, weak consumer confidence, and debt burdens like student loans. He highlighted that Walmart has increased guidance in each of the past three years and aims to beat its initial outlook.

Strategic Positioning

Management framed the quarter as evidence of a resilient omnichannel model:

E-commerce now represents 23% of total sales mix
Global membership fee revenue rose 15.1%
Return on assets reached 8.2%; return on investment 15.1%

Executives said investments in automation and supply chain productivity are lowering cost to serve while improving inventory management and labor efficiency.

“Our results in Q4 FY26 illustrate the underlying strength of our business,” the company said, emphasizing continued investment in tech-powered experiences designed to expand margins and drive long-term shareholder returns.

The quarter reinforces Walmart’s positioning as a people-led, tech-powered omnichannel retailer balancing digital acceleration, disciplined capital allocation and measured expectations in an uneven consumer environment.