Walmart (NYSE: WMT) reported stronger-than-expected fourth-quarter results on Thursday, but its outlook for the first quarter and full-year fiscal 2026 fell short of Wall Street expectations, sending shares tumbling in premarket trading.
The retail giant reported an adjusted earnings per share (EPS) of $0.66 on revenue of $180.55 billion for the final quarter of fiscal 2025. Both figures beat analyst expectations, which had forecast $0.64 EPS and $180.31 billion in revenue, according to Visible Alpha.
Despite the earnings beat, Walmart’s guidance for the first quarter and fiscal 2026 disappointed investors. The company expects revenue growth of 3% to 4% for both the first quarter and the full year. Analysts had been forecasting growth of 3.7% for the first quarter and 4.2% for the year. Additionally, Walmart expects first-quarter adjusted EPS between $0.57 and $0.58, and full-year adjusted EPS of $2.50 to $2.60—both below analysts’ consensus estimates.
Leading up to the earnings release, several analysts had raised their price targets on the Arkansas-based retailer, buoyed by expectations that the retailer would beat fourth-quarter estimates. However, they also anticipated a more conservative outlook, which the company delivered.
Walmart (NYSE: WMT) shares, which had surged more than 80% over the past year, plunged 8% immediately following the report.
Walmart’s weak forecast also weighed on other major retailers. Target (NYSE: TGT) fell 2.19%, while Costco (NASDAQ: COST) slipped 1.62% in premarket action.
