walmart stock gains as online sales hit record share in fiscal fourth quarter
Walmart posted stronger-than-expected fourth-quarter results Thursday (ET), with online sales reaching a record share of total revenue and profits growing faster than overall sales. The quarter's mix shift toward higher-margin businesses and continued supply-chain discipline have investors reassessing the near-term trajectory for walmart stock.
Q4 results: top-line growth and record e-commerce share
For the fiscal fourth quarter, the retailer reported revenue of $190. 7 billion, a 5. 6% increase year over year. U. S. comparable sales rose 4. 6%, driven by a 2. 6% increase in transactions and a 2% rise in the average amount spent per shopping trip. Grocery inflation was notably muted, with overall grocery prices up just 0. 6% year over year and some categories, including eggs and dairy, registering price declines.
Global e-commerce sales climbed 24% in the quarter, and U. S. e-commerce grew 27%, pushing online sales to 23% of total revenue — the highest level in company history. Management highlighted rapid growth in store-fulfilled delivery, which expanded by roughly 50% and now enables faster-delivery options that can reach the majority of U. S. households within hours. That fulfillment flexibility helped lift online penetration and change the revenue mix in the quarter.
Margins improve as advertising and memberships scale
Profits outpaced sales in the quarter. Adjusted operating income rose about 10%, roughly double the pace of core sales growth. That outperformance was driven by higher-margin businesses, notably advertising and membership programs. Advertising revenue increased 37% globally, with the U. S. advertising arm up about 41%, while membership fee income rose by more than 15%. Together, advertising and membership fees made up nearly one-third of operating income during the quarter, underscoring how non-merchandise businesses are boosting overall profitability and supporting walmart stock sentiment.
Inventory growth remained below the pace of sales growth, reflecting continued discipline in supply-chain and inventory management. The combination of healthier margins, lower relative inventory, and stronger online fulfillment contributed to the uptick in profitability and narrowed concerns about excess stock that have weighed on retailers in prior periods.
Guidance and leadership backdrop shape outlook
Looking ahead, the company expects full-year sales to rise between 3. 5% and 4. 5%, with operating profit projected to increase 6% to 8%. Those targets suggest measured top-line expansion paired with continued margin improvement, a mix that investors often favor when assessing walmart stock for a multi-year position.
The results arrive as the company navigates broader macro pressures noted by its leadership, including persistent inflation dynamics, tariff considerations and the early stages of AI-driven opportunities across operations and advertising. The retailer's chief executive, who has announced plans to retire, signaled a focus on scaling digital capabilities and expanding faster-delivery options while preserving value for shoppers.
Market reaction will hinge on several variables: whether management can sustain high single-digit operating profit growth while growing sales modestly, whether advertising and membership revenue can continue to scale, and how effectively the company leverages AI and fulfillment investments to expand market share. For shareholders and prospective buyers of walmart stock, the quarter offered evidence that the business is increasingly less dependent on commodity grocery margins and more driven by services that yield higher returns.
Investors will also watch next-quarter sales trends, U. S. transaction growth, and the cadence of e-commerce fulfillment gains as indicators of whether the record online share represents a durable shift or a temporary acceleration. The current guidance leaves room for upside if faster-delivery expansion and higher-margin initiatives maintain momentum through the fiscal year.
