Zacks Investment Ideas feature highlights Walmart

For Immediate ReleaseChicago, IL – February 20, 2026 – Today, Zacks Investment Ideas feature highlights Walmart WMT.Retail Giant Beats Estimates Amid Tech-Driven EvolutionThe fourth-quarter earnings season is winding down, but that doesn’t mean this week was lacking in headlines. Retail giant Walmart was front and center with another solid earnings announcement.Walmart reported its fiscal fourth-quarter results this morning, capping a strong year with beats on both revenue and earnings amid resilient consumer demand and omnichannel execution.The company delivered total revenues of $190.7 billion, up 5.6% year-over-year (4.9% in constant currency), exceeding the Zacks Consensus Estimate of $190.05 billion. Adjusted earnings per share reached $0.74, edging by expectations of $0.73 and reflecting a 12.1% increase from the prior-year quarter.The results come amid Walmart’s broader AI push, including investments in supply chain optimization, predictive analytics, and personalized shopping tools, positioning the retailer more like a tech-enabled company rather than a traditional brick-and-mortar giant.Digger Deeper into Walmart’s ReleaseThis marks Walmart's second consecutive earnings beat, resuming its long history of outperformance with the U.S. segment leading through value pricing and convenience, while international markets contributed via Flipkart and Walmex.Comparable sales growth remained solid, with Walmart U.S. comps rising 4.6% (ex-fuel), driven by a 2.6% increase in transactions and a 2% uptick in average ticket. Global e-commerce sales surged 24%, fueled by store-fulfilled orders, marketplace expansions, and global advertising growth of 37% (including VIZIO). Membership trends were a highlight with global membership fee revenue up 15.1%.Walmart announced a new $30 billion share repurchase authorization program, further enhancing its goal of delivering shareholder value. The quarter also included a 5% dividend increase to $0.99 per share annually, marking the 53rd consecutive year of raises.“Dividends continue to be a part of our diversified capital returns approach. We're proud to be increasing our annual dividend for the 53rd consecutive year. This decision is a proof point of our continued confidence in our business performance and forward momentum,” said John David Rainey, executive vice president and chief financial officer at Walmart.Guidance updates provided optimism, with Q1 FY27 net sales projected up 3.5-4.5% and operating income up 4-6%, while full-year FY27 also calls for total net sales growth of 3.5-4.5% and adjusted operating income expansion of 6-8%—both raised from prior ranges. This reflects confidence in holiday momentum carrying forward, with e-commerce expected to grow in the mid-20% range and international segments contributing meaningfully.These results underscore Walmart’s leading retail position, with its digital and membership momentum providing a competitive edge in a price-sensitive environment. The company’s approach prioritizes unmatched value combined with enhanced convenience, including accelerated same-day pickup and faster delivery.Walmart’s Stock PerformanceWalmart experienced a minor dip in early trading on Thursday, but recovered by mid-day with shares trading back in positive territory. Today’s move appears more related to general market conditions, pointing to high expectations rather than underlying issues, and could present an entry point for long-term holders.The stock has been widely outperforming this year, up more than 13% while the broader market shows signs of rotation. Walmart is currently a Zacks Rank #3 (Hold), reflecting balanced expectations following the stock’s recent strength.For the broader retail industry, Walmart's performance underscores a narrative of resilience, where omnichannel leaders thrive through convenience and affordability. Investments in AI for inventory management and personalization should further enhance efficiency, positioning Walmart to gain share from peers like Target in discretionary categories.Bottom LineThe quarterly results bode well for Walmart moving forward, signaling its adaptability in a tiered consumer spending landscape where value-seeking persists across income levels. The emphasis on memberships and advertising—now multi-billion-dollar businesses—creates high-margin recurrence, buffering against potential tariff impacts or economic softness.While discretionary weakness lingers, strength in essentials and e-commerce suggests a gradual consumer rebound, potentially lifting the sector if macro conditions stabilize. This could encourage competitors to accelerate digital investments and loyalty programs, fostering innovation across retail amid supply chain challenges and shifting preferences.Overall, Walmart's report affirms its role as a retail bellwether, navigating uncertainties with steady execution.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks