Walmart (WMT) continues to gain market share and expand its alternative revenue streams despite a slight slowdown in sales growth during Q4, UBS Securities said in a report emailed Friday. Walmart (WMT) reported fiscal Q4 adjusted earnings Thursday of $0.66 per diluted share, up from $0.60 a year ago, with revenue rising to $180.55 billion from $173.39 billion. The retail giant reported a 4.6% increase in US comparable sales, though eCommerce growth moderated to 20% from 22% in recent quarters. Walmart still exceeded the mid-point of its EPS guidance by about 11%, reinforcing investor confidence in its long-term strategy, UBS said. The company’s transformation efforts, including growth in advertising, marketplace sales, and store-fulfilled delivery, are driving profitability, with alternative revenue streams adding over $250 million to operating income and global advertising revenue rising 29% in Q4, UBS said. Walmart projected 2025 EPS between $2.50 and $2.60, below the consensus estimate […]

Walmart’s (WMT) long-term profitability is improving, supported by gains from high-margin digital advertising and seller fees in its third-party marketplace online channel, BofA Securities said Friday in a report. The retail store chain is also experiencing broad-based market share gains, offering “strong value and digital convenience,” the report said after the company posted a “strong” fiscal Q4. BofA reiterated its buy recommendation on the stock and $120 price target. The firm trimmed its earnings per share estimates for fiscal years 2026 to 2028 in line with Walmart’s long-term algorithm. In fiscal 2026, BofA expects EPS of $2.65, down from $2.70, with 2027 at $2.90, down from $3, and 2028 at $3.10, down from $3.30. Walmart’s gross margin expansion is expected to continue “as growth in higher-margin ancillary businesses including digital advertising, 3P Marketplace and Fulfillment Services help offset sales mix headwinds,” BofA said.

Walmart’s high-flying stock slipped Thursday, falling more than 5% after the company reported earnings. But there were also some positive signs in the results. The retailer beat Wall Street’s expectations on both the top and bottom line, but guidance for the current fiscal year didn’t quite clear analysts’ high bar. Walmart expects net sales to grow 3% to 4%, and operating income to rise 5% to 7%, excluding some one-off costs. However, there is good reason to think Walmart’s guidance is conservative. That’s partly because high-margin sources of revenue are still growing at a healthy clip and have room to grow. At Walmart U.S., advertising revenue grew 24% in the quarter ended Jan. 31 compared with a year earlier. That marks the 10th straight quarter of 20%-plus growth since the retailer started disclosing that metric. Membership income from the Walmart+ paid subscription program rose by a double-digit percentage. Revenue from

$Walmart (WMT.US)$ topped expectations for the fiscal fourth quarter, but the stock was dropping in premarket trading Thursday after the world’s largest retailer’s guidance fell short. Walmart’s revenue for the quarter ended Jan. 31 rose 4.1% year over year to $180.6 billion, just about topping expectations for $180 billion, according to FactSet. Adjusted earnings per share for the quarter were 66 cents, narrowly coming in ahead of predictions for 65 cents. “We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times,” CEO Doug McMillon said in the earnings release. “We’re gaining market share, our top line is healthy, and we’re in great shape with inventory.” Yet shares were roughly 8% lower at $95.72 ahead of the opening bell Thursday because Walmart’s outlook for fiscal 2026, the year ending next January, missed the mark. For the full year, Walmart sees net sales