Q4 2025 Walmart Inc Earnings Call Transcript
Key Points
- Walmart Inc (WMT) reported a strong quarter with sales growth of 5.2% and adjusted operating income up 9.4% in constant currency.
- The company continues to gain market share across countries and income levels, with transaction counts and unit volumes up across markets.
- Walmart Inc (WMT) is growing profit faster than sales, with higher margin businesses like membership, marketplace, and advertising contributing significantly.
- The company is making significant progress in e-commerce, with a 16% growth in the fourth quarter and improved e-commerce economics, particularly in Walmart US.
- Walmart Inc (WMT) is leveraging technology and AI to improve operations, with initiatives like the AI agent Wally and new coding tools saving millions of developer hours.
- Currency headwinds reduced reported sales by over $2 billion, impacting growth by 120 basis points.
- The company faces ongoing margin pressure from merchandise category mix, with a shift towards grocery and health and wellness.
- SG&A expenses deleveraged 46 basis points in the quarter, driven by tech investments, increased variable pay, and higher marketing and utilities costs.
- The acquisition of VIZIO is expected to have a 150 basis point negative impact on operating income growth due to integration investments and transition costs.
- Walmart Inc (WMT) anticipates continued uncertainties related to consumer behavior and global economic and geopolitical conditions, which could impact future performance.
Greetings. Welcome to Walmart's fourth quarter fiscal year 2025 earnings call. (Operator Instructions)
Please note this conference is being recorded. At this time, I'll now turn the conference over to Steph Wissink, Senior Vice President, Investor Relations. Steph, you may begin.
Thank you. Welcome, everyone. We appreciate you joining us and your interest in Walmart. Joining me today from our home office in Bentonville are Walmart's CEO, Doug McMillon; and CFO, John David Rainey. Doug and John David will first share their views on the quarter, and then we'll open up the line for your questions.
During the question-and-answer portion, we will be joined by our segment CEOs, John Furner from Walmart US; Kath McLay from Walmart International; and Chris Nicholas from Sam's Club. For additional detail on our results, including highlights by segment, please see our earnings release and accompanying presentation on our website. We will make every effort to answer as many of your
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