US retail giant Walmart has reported a "healthy top line” in fiscal 2025 (FY25) with its sales, profit and earnings surpassing expectations in the fourth quarter (Q4) of FY25.
The retailer has seen its revenue surge to $680.98bn in FY25, marking a 5.1% rise from the previous year's $648.12bn.
The fiscal year, which concluded on 31 January 2025, also witnessed Walmart's net sales climb 5% to reach $674.5bn.
This growth was fuelled by robust performance across various regions, with a 5% increase in the US and an even more impressive 6.3% jump in international markets.
Sam’s Club in the US also contributed to the success story with a 4.7% rise in net sales, totalling $90.2m.
The company's operating income rose $2.3bn or 8.6%, culminating in a striking $29.34bn for FY25.
Consolidated net income attributable to the company saw a 25.3% escalation, reaching $19.4bn in FY25, up from $15.51bn in FY24.
The company’s diluted earnings per share (EPS) increased by 26.2%, rising from $1.91 to $2.41 compared to the previous year.
In the fourth quarter (Q4) of FY25, Walmart's revenue was reported at $180.55bn, a 4.1% increase from $173.38bn in the same period of FY24.
Global e-commerce sales were particularly noteworthy during the quarter, experiencing a 16% surge, driven largely by store fulfilled pickup and delivery and the US marketplace; although this figure was somewhat impacted by the timing of Flipkart’s Big Billion Days sales event in India.
The company's gross margin rate improved by 53 basis points (bps), predominantly led by Walmart US operations.
During Q4 FY25, operating income also saw an upward trend of 8.3%, reaching $7.85bn compared to $7.25bn in the same period of the previous year.
Consolidated net income attributable to Walmart saw a slight decline of 4.4%, settling at $5.25bn down from $5.49bn in Q4 FY24.
Looking ahead to the first quarter of fiscal 2026, Walmart anticipates net sales growth between 3% and 4%.
For the full fiscal year 2026, expectations are set for net sales to experience a similar growth rate of 3% to 4%.
Adjusted operating income for FY26 is projected to grow between 3.5% and 5.5% in constant currency. This forecast includes an anticipated headwind of 150 basis points due to VIZIO's acquisition and the impact of leap year adjustments.
Walmart president and CEO Doug McMillon stated: “Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an e-commerce business driven by faster delivery times.
“We’re gaining market share, our top line is healthy and we’re in great shape with inventory. We’ll stay focused on growth, improving operating margins and strengthening ROI [return on investment] as we invest to serve our customers and members even better.”
In February 2025, Walmart eliminated certain job roles and closed its North Carolina, US office in an ongoing effort to centralise employees in its primary hubs.
