Walmart’s Earnings Beats Estimates, but Profit Growth to Slow in 2025
Walmart reported strong results for its holiday quarter, exceeding Wall Street’s estimates on both earnings and revenue as holiday shoppers and higher-income customers pushed U.S. comparable sales up 4.6%. E-commerce grew 20%, boosted by store pickup, home deliveries, and larger basket sizes. Yet despite these wins, the retailer warned that profit growth will moderate in the new fiscal year, targeting adjusted operating income growth of just 3.5% to 5.5%—a step down from last year’s nearly 10% gain.
During a CNBC interview, CFO John David Rainey expressed faith in “steady” consumer spending patterns but cited geopolitical uncertainties and looming tariffs on Mexico and Canada as concerns. Walmart sources about two-thirds of its products domestically, but Rainey said potential tariffs could still affect some goods and customer prices. The retailer did not factor new tariffs into its guidance, describing the environment as “far from certain.”
Walmart’s leadership highlighted its higher-margin initiatives—like online advertising, marketplace sales, and membership programs—that gained traction in the fourth quarter. Meanwhile, Sam’s Club sales also notched a 6.8% gain. Despite robust holiday performance and a fresh 13% dividend hike, Wall Street reacted cautiously to the tempered outlook, sending shares down about 6% in early trading.
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