Walmart Posts Strong Holiday Quarter as Lower Prices and Fast Delivery Draw Higher-Income Shoppers

BY Rosemary

Walmart delivered another robust quarterly performance during the critical holiday shopping season, buoyed by its reputation for low prices and increasingly rapid delivery options that attracted a broader mix of customers, including more affluent households.

The Bentonville, Arkansas-based retail giant reported results for its fourth quarter ended Jan. 31 that exceeded Wall Street expectations on both earnings and revenue. However, its forward guidance signaled caution, reflecting concerns about a potentially volatile economic backdrop in the months ahead. Shares initially fell more than 3% in premarket trading before reversing course and moving into positive territory.

Walmart posted fourth-quarter net income of $4.24 billion, or 53 cents per share, compared with $5.25 billion, or 65 cents per share, in the same period a year earlier. On an adjusted basis, earnings were 74 cents per share, edging past analysts’ projections by a penny, according to data from FactSet.

Revenue rose 5.6% to $190.7 billion, up from $180.6 billion in the prior-year quarter and slightly ahead of expectations. Comparable sales at U.S. stores, including online transactions, increased 4.6%, building on a 4.5% gain in the previous quarter. The company said growth was broad-based, with groceries once again serving as a powerful traffic driver. Apparel and fashion categories were also cited as areas of strength during the holiday period.

Delivery speed played a pivotal role in sustaining sales momentum. Orders fulfilled in under three hours accounted for 35% of purchases shipped from stores, underscoring Walmart’s ongoing investment in supply chain technology and last-mile logistics. The company has increasingly leveraged its extensive store footprint to function as a network of fulfillment hubs, shortening delivery windows and enhancing convenience for customers.

E-commerce continued to expand at a rapid pace. U.S. online sales climbed 27% during the quarter and now represent 23% of total company sales. Globally, e-commerce revenue increased 24%, reinforcing Walmart’s position as a hybrid retailer blending physical stores with digital platforms.

The quarter also marked a leadership transition. John Furner, 51, previously head of Walmart’s U.S. operations, stepped into the chief executive role this month, succeeding Doug McMillon, who had led the company since 2014. Under McMillon’s tenure, Walmart transformed itself into a technology-enabled retail powerhouse, investing heavily in automation, data analytics and digital infrastructure while delivering sustained sales growth.

Investor enthusiasm has reflected that transformation. Walmart’s shares have risen more than 25% since its previous earnings report, and earlier this month the retailer became the first non-technology company to surpass a $1 trillion market valuation, a milestone that underscores its scale and influence in the global retail sector.

With more than 150 million customers visiting its stores or website each week, Walmart is widely regarded as a bellwether for U.S. consumer spending. Its performance offers insight into broader economic conditions, particularly at a time when households remain sensitive to pricing pressures. Although inflation has moderated from recent peaks, consumer prices have increased roughly 25% over the past five years, reshaping spending habits across income brackets.

The company’s strategy of emphasizing value, improving merchandise assortments and accelerating delivery options has broadened its customer base. Management reported that the strongest gains in market share came from households earning more than $100,000 annually, indicating that higher-income shoppers are increasingly turning to Walmart for both essentials and discretionary items.

At the same time, executives acknowledged ongoing strain among lower-income consumers. Furner told analysts that while shoppers overall remain resilient, households earning below $50,000 a year continue to face financial pressure. Many are managing expenses carefully, often living paycheck to paycheck. Even so, he noted that convenience is becoming nearly as important as price for these customers, highlighting shifting consumer priorities.

Walmart has navigated higher input costs, including those associated with tariffs introduced under President Donald Trump, by adjusting product assortments and absorbing portions of the increases. Chief Financial Officer John David Rainey said average prices for identical items rose slightly more than 1% in the latest quarter. Food prices increased by slightly less than that rate, while general merchandise inflation was somewhat higher. Rainey indicated that a similar pricing trend is expected to persist through the current fiscal year.

Looking ahead, Walmart projected first-quarter sales growth of 3.5% to 4.5%, with earnings per share ranging from 63 cents to 65 cents. For the full fiscal year, the company expects revenue of approximately $706.4 billion and earnings per share of $2.64.

The outlook fell slightly below analysts’ expectations. Projections compiled by FactSet had anticipated first-quarter earnings of 68 cents per share and full-year revenue of $712.6 billion, with earnings also forecast at $2.64 per share.

Rainey said management opted for a conservative forecast at the start of the year, citing subdued consumer sentiment and slower job growth. He emphasized that such prudence is consistent with Walmart’s historical approach, particularly given its size and close ties to overall economic health.

“Given that we are as large as we are and so tied to consumer health and the economy, we want to maintain maximum flexibility and not get out ahead of ourselves at this point in the year,” Rainey said.

The results underscore Walmart’s ability to adapt in a shifting retail landscape, balancing price leadership with operational efficiency and digital innovation. Even as economic uncertainties loom, the company’s holiday-quarter performance suggests that its combination of scale, logistics capability and value positioning continues to resonate across a wide cross-section of American consumers.