**USA**: Walmart Inc. delivered strong financial results for Q4 but forecasts a conservative revenue growth for fiscal 2026. CEO Doug McMillon highlighted the importance of AI in operations, which has enhanced efficiency and decision-making processes, despite economic uncertainties affecting future projections.
Walmart Inc. reported robust financial results for its fourth quarter, providing insights into its business strategies during a recent earnings call. However, the company also cautioned about a more conservative outlook for fiscal year 2026, anticipating revenue growth that is expected to fall short of the previous year’s gains.
During the earnings call, Walmart CEO Doug McMillon underscored the critical role of artificial intelligence (AI) in the company’s operations. The retail giant is actively enhancing its business processes through AI, focusing on inventory management, supply chain logistics, and internal development efficiency. McMillon noted that the integration of AI has enabled Walmart to tackle internal challenges more effectively and aid its technology teams.
Among the significant developments highlighted was a new AI tool designed to assist merchants in pinpointing the underlying causes of out-of-stock and overstock scenarios. This advanced AI agent is aimed at improving decision-making processes and operational efficiency by providing quicker and more accurate analytics.
Moreover, McMillon discussed the advancements in AI tools for developers, which have streamlined coding processes within the company. He stated, “Last year, these tools helped us save about 4 million developer hours,” emphasising their impact on reducing both development time and bugs in deployed code.
Despite these innovative strides, Walmart’s Chief Financial Officer, John David Rainey, acknowledged the current economic uncertainties during the call. The company’s guidance for fiscal year 2026 suggested a revenue growth rate of 3% to 4%, significantly lower than the previous year’s 5.1% increase. Additionally, Walmart expects earnings per share to fall between $2.50 and $2.60, which is below the $2.76 analyst estimate.
For the fourth quarter, Walmart reported impressive results with a revenue of $180.55 billion, marking a 4.1% increase compared to the same period last year. This figure exceeded analysts’ expectations, which forecasted revenues of $180.01 billion. The adjusted earnings per share were also better than projected, recorded at 66 cents against an expected 64 cents.
The stock experienced volatility following the earnings announcement, dropping by 6.53% on Thursday, in contrast to the 0.42% decline seen in the SPDR S&P 500 ETF Trust. However, in after-hours trading, Walmart shares saw a slight rebound, rising by 0.19%. The company’s stock has shown resilience, reflecting a year-to-date increase of 4.40% and a significant rise of 22.76% over the past year.
As analysts evaluate Walmart’s market position, Benzinga noted that there is an average price target of $102.07 for the stock, with a collective “buy” rating from 30 analysts. Price estimations vary widely, ranging from $75 to $120, with recent ratings from Piper Sandler, Baird, and Barclays averaging at $113.67, indicating a potential upside of approximately 16.71%.
Source: Noah Wire Services
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