Walmart Warns Earnings For 2025 Will Be Below Expectations

Walmart released a strong earnings report Thursday but warned of potential struggles ahead.

The retail giant's stock price was down more than 4% in premarket trading.

Walmart reported total revenues of $648.1 billion and net sales of $642.6 billion in the fourth quarter.

The earnings report showed strong revenue growth and increased operating income in Walmart U.S., Sam's Club, international, and e-commerce segments.

Walmart attributed the strong net sales growth to its strength in e-commerce and in-store channels.

E-commerce sales grew by 17% with Sam's Club benefiting from curbside pick-up and delivery.

Sam's Club posted $86.2 billion in net sales and operating income surged by 20.4%. Membership revenue climbed by 10% year-over-year, reaching $1.9 billion.

Walmart U.S. contributed $441.8 billion in net sales, driven by 4.3% growth in transactions and 4% comparable sales.

Operating income for Walmart U.S. grew 12.9% in the latest quarter, while adjusted operating income also improved.

About 255 million customers and members visit more than 10,500 Walmart stores and ecommerce websites worldwide.

Walmart holds total assets of $252.4 billion and reported operating cash flow of $35.7 billion.

Debt stands at $46.9 billion.

Walmart provided a cautious outlook for fiscal year 2026, projecting a 3% to 4% increase in net sales and operating income to increase between 3.5% and 5.5%.

Walmart expects first quarter earnings per share of between 57 cents and 58 cents, well below the 64 cents Wall Street was expecting, the Associated Press reported.

It said earnings per share for the full year will be between $2.50 and $2.60. Wall Street had predicted $2.77 per share.

There are concerns that President Donald Trump's tariffs on foreign-made goods will threaten the company's low-cost model.

Walmart opened a new 360,000 square feet headquarters in Bentonville, Arkansas last month.

Walmart announced in January that it's scaling back on perks for its corporate staff, while rewarding regional management with annual salaries as high as $600,000, based on bonus earnings.