Walmart reported another strong quarter as Americans continued to prioritize low prices and convenience, yet the company’s executives struck a cautious tone about the year ahead.
The retailer, whose market capitalization recently topped $1 trillion, said on Feb. 19 that revenue in the fourth quarter of its fiscal year 2026 rose 5.6 percent to $190.7 billion. Operating income climbed 10.8 percent, outpacing sales growth.
In the United States, Walmart’s comparable sales—covering stores and digital channels operating for at least 12 months—rose 4.6 percent. Walmart attributed the gain to shoppers seeking value and convenience, boosted by its speedy store-fulfilled pickup and online delivery.
While Walmart’s services attract consumers across income groups, according to the executives, there is a growing reliance on the brand by wealthier Americans.
“We’ve leaned into these lower prices that consumers have responded to, and we’ve continued to gain share among all demographics,” Walmart CFO John David Rainey said on the earnings call, adding that gains appeared “notably” stronger among higher-income shoppers.
New Walmart Inc. CEO John Furner, who took the helm on Feb. 1, added that the majority of Walmart’s market share gains came from “households making more than $100,000” as more affluent customers turned to Walmart not only for groceries but also for other categories.
At the same time, Furner noted that lower-income customers continue to seek low prices and convenience amid economic strain.
“For households earning below $50,000, we continue to see that wallets are stretched and in some cases, people are managing spending paycheck to paycheck,” he told investors and analysts during the call. “That said, even those households are emphasizing convenience nearly as much as price.”
Despite the strong quarter, Walmart offered relatively conservative guidance for fiscal 2027. The company said it expects net sales to rise by 3.5 percent to 4.5 percent, with operating income increasing by 6 percent to 8 percent, which would maintain its recent pattern of profit growth outpacing sales.
“We believe it’s prudent to start the year with a level of conservatism, given the backdrop is still somewhat unstable,” Rainey said.
The outlook came in below some Wall Street expectations, and Walmart shares slid in premarket trading after the report.
Walmart’s rise above $1 trillion in market value places it in a small group dominated by technology giants such as Apple and Microsoft. Like many of those companies, Walmart has expanded its use of artificial intelligence (AI) across its supply chain and digital operations as it works to make its e-commerce business more profitable.
“AI is increasingly embedded across Walmart,” David Guggina, the new head of Walmart U.S., said during the call. “It is still early in this space and we’re continuing to add capabilities.”
Furner added that even as online sales expand, Walmart’s physical stores remain central to the business and that the company wants to be nimble as consumer demand shifts with the broader economy.
“We’ll just continue to focus on low prices,” he said. “But as categories shift, categories grow, or they slow, our team will be very reactive.”
