Walmart Inc Q4 FY2026 Earnings Analysis
Published February 19, 2026 · Consumer Staples
Walmart delivered a solid Q4 performance, beating both earnings and revenue expectations with EPS of $0.66 versus the $0.64 estimate and revenue of $180.10B exceeding the $178.50B forecast. The 3.13% earnings surprise demonstrates the retail giant's ability to maintain profitability while managing through a challenging operating environment.
Key Results
| Metric | Estimate | Actual | Surprise |
|---|---|---|---|
| EPS | $0.64 | $0.66 | +3.13% |
| Revenue | $178.50B | $180.10B | +0.90% |
Earnings Per Share
The $0.66 EPS result, which beat estimates by 3.13%, signals effective cost discipline and operational efficiency at Walmart. This bottom-line outperformance suggests the company successfully managed margin pressures while continuing to invest in growth initiatives. The earnings beat reinforces Walmart's ability to translate revenue growth into meaningful profit generation.
Revenue
Revenue of $180.10B came in $1.60B above expectations, representing a modest but consistent 0.90% surprise that demonstrates steady demand resilience. This top-line performance indicates Walmart's defensive positioning in consumer staples continues to drive traffic even amid economic uncertainty. The revenue beat, while not dramatic, shows the company's market-leading position remains intact.
Trend Analysis
This quarter's dual beat pattern suggests Walmart's execution strategy is working effectively, with the company demonstrating both revenue momentum and profit optimization. The consistent outperformance across both metrics indicates strong operational discipline and strategic focus. Walmart appears to be successfully navigating the current retail landscape while maintaining its competitive moat.
What This Means for Investors
Investors should view these results as validation of Walmart's defensive growth story, with the company proving it can deliver consistent outperformance in both revenue and profitability. The solid execution provides confidence in management's ability to sustain momentum through varying economic conditions. The earnings beat particularly strengthens the investment case for those seeking reliable returns in the consumer staples space.
Blank Capital Rating
Composite Score: 80.6/100 — Buy
Based on our 6-factor quantitative model evaluating value, momentum, quality, profitability, growth, and volatility.
Our Buy rating with an 80.6/100 composite score appears well-supported by these results, as the dual beat demonstrates the quantitative factors driving our positive assessment. The earnings surprise validates our model's expectation for continued operational excellence and margin management. The strong composite score reflects Walmart's ability to consistently execute against both growth and profitability metrics.
Sector Context
Within the consumer staples sector, Walmart's performance stands out for its balanced approach to growth and profitability optimization. While many discount retailers face margin compression, Walmart's ability to beat earnings expectations demonstrates superior operational leverage. The company's results reinforce its position as a sector leader capable of outperforming broader retail trends.
Looking Ahead
Next quarter, investors should monitor whether Walmart can sustain this momentum amid potential consumer spending shifts and seasonal variations. Key catalysts include the company's continued e-commerce growth trajectory and its ability to maintain the margin discipline demonstrated this quarter. Watch for guidance updates on capital allocation priorities and any commentary on consumer behavior trends that could impact future performance.
Frequently Asked Questions
Did Walmart Inc beat earnings expectations?
Yes, Walmart beat earnings expectations with an EPS of $0.66 versus the $0.64 estimate, representing a 3.13% positive surprise.
What was Walmart Inc's revenue this quarter?
Walmart reported Q4 revenue of $180.10B, which exceeded the $178.50B estimate by $1.60B or 0.90%.
How does WMT's stock rating look after earnings?
Our composite score of 80.6/100 supports a Buy rating, which appears validated by the dual earnings and revenue beat.
What should investors watch for next quarter?
Key items to monitor include sustainability of margin discipline, e-commerce growth trends, and management guidance on consumer spending patterns.
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View WMT Analysis →This article was generated by Blank Capital Research's AI-powered earnings analysis system using Claude. All financial data comes from verified market data providers. The analysis is provided for informational purposes only and should not be construed as investment advice. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.