Walmart Inc. Q4 FY2025 earnings call

• Strong sales and profit growth: Sales grew 5.2% with adjusted operating income up 9.4% in constant currency. • Higher-margin businesses: Growth in membership, marketplace, and advertising. • Holiday performance: Strong in U.S., Mexico, Canada, China, India; Sam's Club had strong Lunar New Year. • Fintech news: PhonePe preparing for IPO in India. • Supply chain and AI: Progress in supply chain automation, AI tools like Wally for merchants and coding assistance for developers. • Home office transition: Began opening new home office buildings in Bentonville, maintaining cultural values.

Walmart U.S. had comp sales growth of 4.6%, including 20% e-commerce sales growth. International in constant currency delivered sales growth of 5.7%. Sam's Club U.S. comp sales ex-fuel increased 6.8%.

• Fiscal 2026: Consolidated net sales growth 3%-4%, operating income growth 3.5%-5.5%, adjusted EPS $2.50-$2.60. CapEx 3%-3.5% of sales. • First quarter 2026: Consolidated net sales growth 3%-4% in constant currency, operating income growth 0.5%-2% in constant currency, EPS $0.57-$0.58. • Notes: Guidance accounts for lapping leap year, VIZIO acquisition impact, and Easter timing shift.

• Macro-economic uncertainties: Consumer behavior, global economic and geopolitical conditions could affect results. • Currency fluctuations: Volatility in currency rates can impact sales and operating income growth. • Tariffs: Uncertainties around tariffs and their impact on earnings. • Other factors: Anomalies like avian flu affecting specific categories may impact results.

Q: How is Walmart Plus membership performing and what about Walmart Plus Assist?

A: John Furner said Walmart Plus has consistent growth, with strong same-day delivery growth and pharmacy delivery showing promise. Markdowns are managed with normalized inflation expectations.

Q: What's the outlook on consumer environment and rollbacks?

A: Doug McMillon and John Furner stated the consumer is resilient, mix has shifted slightly, but the team is ready for any environment with strong omni-channel capabilities.

Q: Details on VIZIO integration and dilution?

A: John David Rainey said there's dilution related to VIZIO transaction in Q1 (70 basis points), but expects it to be accretive next year. John Furner is excited about VIZIO's operating system enhancing Walmart Connect.

Q: Drivers of e-commerce profitability and ROI?

A: John David Rainey mentioned densification of network, customers paying for expedited delivery, and newer businesses like advertising and membership. Kath McLay discussed PhonePe's strong TPV and transaction volume, while John David Rainey spoke about ROI aiming to increase annually through investments like supply chain automation.