Walmart Tops Q4 Estimates but Misses Guidance; Shares Drop
Highlights:
* Earnings per share (EPS): $0.66 (vs. $0.64 estimated)
* Revenue: $180.55 billion (vs. $180.31 billion estimated)
* Q1 and FY2026 guidance:
* Revenue growth: 3-4% (vs. 3.7% and 4.2% estimated)
* Adjusted EPS: $0.57-0.58 (Q1), $2.50-2.60 (FY2026) (below consensus)
Analyst Reaction:
Despite Walmart's better-than-expected Q4 results, its conservative guidance has weighed on investor sentiment.
* Several analysts adjusted their price targets before earnings, anticipating Walmart to surpass estimates.
* They also expected guidance to be below consensus, as has been Walmart's pattern.
Market Impact:
Walmart shares, which had surged over 80% in the past year, plunged 8% in premarket trading following the earnings report.