Over the years, Walmart Inc. (NYSE: WMT) has consistently dominated the US grocery market, benefitting from lower prices and its wide product range across categories. After delivering an impressive performance so far in fiscal 2025, the company is all set to publish results for the final three months of the year.
Walmart’s stock has been on an upward trend for quite some time, quickly recovering after each short-term dip. Last week, the shares reached the $100 mark for the first time, and they hit a new high during Wednesday’s session. Considering the favorable valuation and the company’s track record of regularly raising dividend payouts, WMT remains a good long-term investment.
Q4 Report on Tap
As the retail behemoth prepares to publish its fourth-quarter report on February 20 before the opening bell, analysts forecast revenues of $178.83 billion and earnings of $0.65 per share. These estimates represent a stronger performance compared to the prior-year quarter when the company earned $0.60 per share on revenues of $171.91 billion.
Comparable store sales growth in the US — Walmart’s primary market in terms of sales — accelerated for the third consecutive quarter. In the third quarter, comparable sales of Walmart US and Sam’s Club increased by 5.3% and 7.0% respectively from the prior-year quarter.
Sales grew across all geographical segments and operating divisions and total revenue rose 6% to $169.6 billion in the October quarter. The company’s quarterly revenue has regularly beaten estimates for about five years. Adjusted earnings per share rose 14% to $0.58 in the third quarter and topped expectations, continuing the recent trend. Unadjusted profit more than doubled to $4.6 billion or $0.57 per share.
Innovation
Walmart’s continued focus on expanding its e-commerce capabilities, while also ramping up physical stores to enhance customer experience, enables it to effectively compete with Amazon. However, the company’s Everyday Low Pricing Strategy remains the main factor that makes it a preferred shopping destination for customers across all demographic groups. The company is using generative AI to improve its services, like refining the product catalog, and is already seeing early tangible results from the deployment of the technology.
Walmart’s CFO John David Rainey said during his post-earnings interaction with analysts, “We’re broadening our assortment, improving customer experience, and earning their trust while seeing share gains as a result. We’re also realizing benefits from the investments we’ve made in our core omni-retail business and seeing improved profitability with newer businesses. We’re executing on our strategy, and the business model is delivering as it’s designed to do with operating income growing faster than sales, and yet there is much more opportunity ahead.”
On Wednesday, WMT maintained an uptrend throughout the session. The stock’s value has nearly doubled in the past twelve months.