Walmart's stock (NYSE: WMT) dropped by 5.82% during pre-market trading right after the company's earnings results were released, recording $98.92,

 

On Thursday, American retail giant Walmart announced its fourth-quarter results for fiscal year 2024, which exceeded Wall Street experts' expectations; however, the stock price dropped due to the disappointing future outlook provided by the company for the next year.

The key points from Walmart's quarterly earnings report are as follows:

First: Fourth Quarter Results

Walmart's revenues increased by 5.3% year-over-year in the fourth quarter to $182.6 billion, surpassing expectations of $180.21 billion.

Adjusted earnings per share rose by 10% to $0.66, exceeding estimates of $0.65.

Sales at Walmart U.S. stores grew by 4.6% in the fourth quarter, attracting more high-income shoppers, with expectations only predicting a growth of 4.36%.

Walmart's e-commerce sales increased by 2.9%, compared to expectations of 2.88%.

The company’s subscription service (Walmart+) saw significant growth in the quarter, with memberships increasing by 33%.

Second: Full Year Results for 2025

Walmart's revenues rose to $684.2 billion in the full year of 2025, surpassing estimates of $680.70 billion.

Walmart's adjusted earnings per share for the entire year were recorded at $2.51, compared to forecasts of $2.49.

Sales at Walmart stores in the U.S. increased by 4.5%, against expectations for a growth of 4.62%.

Walmart's e-commerce sales increased by 20% year-over-year in the U.S., supported by the in-store pick-up and delivery services, in addition to the advertising platform, while strong holiday sales boosted quarterly earnings.

Walmart's Outlook for the New Year:

Despite the stronger-than-expected financial performance of the American retail giant in 2024, Walmart provided a conservative forecast for sales in the upcoming year, similar to the last two years. The company expects net sales to increase by between 3% and 4% in the new fiscal year.

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The company's CFO, John David Rainey, stated: "Walmart has been operating in an extremely dynamic backdrop for several years, and we expect this year to be no different." He added: "Our new forecasts assume a relatively stable macroeconomic environment, but they acknowledge that uncertainties persist regarding consumer behavior and global economic and geopolitical conditions."

Walmart's Stock Performance:

In trading, Walmart's stock (NYSE: WMT) dropped by 5.82% during pre-market trading right after the company’s earnings results were released, recording $98.92, amid weak sales growth forecasts. Walmart’s stock had closed yesterday’s session at $104.00.

Over the past year, Walmart's shares posted strong gains of over 75%, compared to a 23% gain in the S&P 500 index during the same period, and a 13% loss for its competitor Target (NYSE: TGT).

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