Walmart just dropped its fourth-quarter and full-year fiscal 2025 results, and honestly, the numbers are a bit of a wake-up call for anyone who thinks the "big box" era is fading. They didn't just meet expectations; they basically steamrolled them.
Total revenue for the quarter hit a massive $180.6 billion. That is a 4.1% jump compared to last year. If you strip out the noise of currency fluctuations, that growth actually looks more like 5.3%. It's a lot of money. More importantly, it shows that even with inflation being a constant headache for everyone, people are still flocking to the blue sparks.
What really happened with Walmart reports Q4 FY25 earnings
When you look under the hood of the Walmart reports Q4 FY25 earnings data, the standout isn't just the sheer volume of stuff sold. It’s how they’re selling it.
E-commerce is no longer a side project for Doug McMillon and his team. It grew 16% globally this quarter. In the U.S. alone, digital sales surged by 20%. This wasn't just people ordering boring essentials, either. A huge chunk of this was driven by store-fulfilled pickup and delivery. Basically, Walmart has turned its 4,700 U.S. stores into a localized version of Amazon’s fulfillment centers, and it's working.
- Global Revenue: $180.6 billion (up 4.1%)
- U.S. Comparable Sales: Increased 4.6% (excluding fuel)
- Sam’s Club Performance: Comp sales grew 6.8%
- Adjusted EPS: $0.66 per share
The company actually managed to grow its operating income faster than its sales. That is a hard trick to pull off in retail. Operating income rose 8.3% to $7.3 billion. They’re getting more efficient, and they’re making more money on things like advertising and memberships rather than just thin-margin groceries.
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The Upper-Income Shift
One of the most interesting tidbits buried in the report is who is shopping there. It’s not just the budget-conscious crowd anymore. Walmart is gaining significant market share from upper-income households. You’ve probably noticed it yourself—more premium brands on the shelves and a much slicker app experience. When people with six-figure salaries start choosing Walmart for their weekly haul to save time and money, the competitive landscape changes.
Advertising is the Secret Weapon
You might not think of Walmart as an ad agency, but Walmart Connect (their U.S. advertising arm) grew by 24% this quarter. Globally, the ad business is now a $4.4 billion beast.
Think about it. They have the data on what millions of people actually buy. Brands are tripping over themselves to pay for placement on Walmart's site because they know it leads directly to a checkout. This is "high-margin" revenue, meaning it's much more profitable than selling a gallon of milk. This shift in the business mix is exactly why the stock has been performing so well.
Sam’s Club and the International Engine
Sam’s Club is having a moment. Membership income was up double digits, and they saw a 13% jump in membership revenue. People are leaning into the club model, likely to hedge against food price volatility.
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On the international side, things are a bit more complex. Total international sales reached $32.2 billion. While that looks like a slight dip in raw dollars, on a constant currency basis, it was actually up 5.7%. China and Mexico (Walmex) continue to be the heavy lifters here. Even with the timing of Flipkart’s "Big Billion Days" shifting things around, the global trajectory is clearly upward.
The VIZIO Acquisition
We also saw the completion of the VIZIO deal. This wasn't about selling more TVs. It was about data and eyeballs. By owning the operating system on millions of TV sets, Walmart can now connect what you see in a commercial directly to what you buy on their app. It’s a closed-loop system that most retailers would kill for.
Looking Ahead to FY26
Walmart isn't resting on its laurels. For the upcoming fiscal year 2026, they’re forecasting net sales growth of 3% to 4%. They expect adjusted operating income to climb between 3.5% and 5.5%.
- Inventory levels are healthy. They ended the year with inventory up just 2.8%, which is great because it means they aren't sitting on piles of unsold "stuff" they have to discount.
- Dividend Hike. They raised the dividend by 13% to $0.94 per share. That’s the biggest increase in over ten years. It’s a massive signal of confidence to the market.
- Delivery Speed. They delivered over 2.3 billion items same-day or next-day in FY25. They’re betting the house on speed.
There are still risks, of course. Consumer spending can be fickle. If the labor market cools off significantly, even the "value" leader will feel the pinch. Plus, they have to lap a "leap year" in FY26, which technically creates a small headwind for year-over-year comparisons.
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Practical Insights for Investors and Shoppers
If you’re watching the Walmart reports Q4 FY25 earnings to decide your next move, keep a few things in mind. The company is no longer just a "shop." It's a tech-driven logistics and media company.
- Watch the Margins: If the advertising and marketplace segments continue to grow at 20%+, Walmart’s overall profitability will keep rising even if grocery sales stay flat.
- The App is Everything: The growth in e-commerce shows that the "Walmart+" membership is finally gaining the kind of friction-less loyalty that Amazon Prime enjoys.
- Convenience over Price: While "Everyday Low Price" is the slogan, the data shows customers are actually staying for the convenience of the pickup and delivery services.
To stay ahead of these trends, keep an eye on the quarterly marketplace seller counts. That number grew 50% this year, indicating that Walmart is successfully pivoting to a platform model. For anyone holding the stock or just wondering where their grocery money is going, the message is clear: Walmart has figured out how to thrive in a digital-first world without losing its physical soul.
Monitor the upcoming Q1 FY26 guidance updates to see if the momentum from this holiday quarter carries into the spring, especially as they integrate the VIZIO advertising tech into the main platform.