Walmart Reports Strong Holiday Sales, But Offers Muted Outlook

Retail giant sees gains from wealthier shoppers, but warns of economic volatility ahead.

Published on Feb. 25, 2026

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Walmart delivered another impressive quarter, with strong holiday sales driven by lower prices and faster deliveries that attracted a broader range of customers, including wealthier households. However, the company's outlook for the current quarter and full year was more muted than analysts had expected, hinting at a volatile economic environment ahead.

Why it matters

Walmart's performance is seen as a barometer of consumer spending, given its vast customer base of over 150 million weekly visitors. The company's ability to navigate inflation and shifting consumer trends provides insights into the broader retail landscape.

The details

Walmart reported fourth-quarter earnings of $4.24 billion, or 53 cents per share, on sales of $190.7 billion, a 5.6% increase from the prior year. Adjusted earnings per share were 74 cents, beating Wall Street expectations. Comparable sales at Walmart stores, including online, rose 4.6%, with strong growth in groceries. The company's U.S. e-commerce business increased 27% during the quarter, accounting for 23% of overall sales. However, Walmart's outlook for the current quarter and full year was more conservative than analysts had projected, with the company citing a volatile economic environment.

  • Walmart reported fourth-quarter earnings for the period ended January 31, 2026.
  • John Furner took over as Walmart's CEO earlier this month, replacing Doug McMillon.

The players

Walmart

The largest retailer in the world, with over 150 million customers visiting its stores and website weekly.

John Furner

The new CEO of Walmart, taking over from Doug McMillon this month.

Doug McMillon

The former CEO of Walmart, who transformed the company into a tech-powered retail giant and drove robust sales growth during his tenure.

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The takeaway

Walmart's strong holiday sales, driven by its ability to attract a diverse customer base with low prices and fast delivery, highlight the company's resilience in the face of economic uncertainty. However, the retailer's muted outlook suggests it is bracing for potential volatility ahead, underscoring the broader challenges facing the retail industry.