Walmart (NYSE:WMT) saw its shares edge lower in premarket trading Thursday after issuing a full-year earnings forecast that fell short of Wall Street expectations, citing heightened uncertainty across a range of economic and geopolitical factors.
The Arkansas-based retail giant projected fiscal 2027 adjusted earnings per share of $2.75 to $2.85, below the Bloomberg consensus estimate of $2.97. For the first quarter, the company expects adjusted EPS of $0.63 to $0.65, also under analysts’ expectations of $0.69.
“[R]esults may be materially affected by many factors, such as fluctuations in foreign currency exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, customer demand and spending, inflation, interest rates, world events, and the various other factors,” Walmart said in a presentation accompanying its results.
For the fourth quarter, adjusted earnings came in at $0.74 per share on revenue of $190.66 billion, slightly ahead of analyst estimates of $0.73 per share and $190.58 billion in revenue.
Despite the cautious outlook, Walmart stock has gained more than 12% year-to-date, lifting its market value above $1 trillion and reinforcing its position as the largest company in the consumer staples sector.
The results arrive amid a broader debate among economists that U.S. economic momentum is being driven primarily by higher-income households and corporate spending. Lower-income consumers, by contrast, continue to face persistent pressure from elevated living costs and subdued hiring trends.
Comparable sales at Walmart’s namesake U.S. stores increased 4.6% in the 13 weeks ended January 30, excluding fuel. The period included the critical holiday shopping season and saw support from higher-income shoppers, although gains were recorded across most merchandise categories.
E-commerce remained a central growth engine, accounting for a record 23% of total sales as demand for faster delivery services continued to expand. Walmart has recently teamed up with OpenAI and Google to deploy artificial intelligence tools aimed at boosting operational efficiency and enhancing the online shopping experience.
However, membership income declined 11.2%, reflecting the comparison with insurance recovery proceeds booked in the prior year.
“Despite offering a conservative forecast, Walmart is in good shape for the year ahead. The company’s promise to deliver ’every day low prices’ is resonating with consumers across all income levels,” said Rachel Wolff, Senior Analyst at Emarketer.
Wolff added that Walmart’s “dominance” in staple categories such as groceries is “helping insulate” the company from broader economic volatility, as shoppers increasingly seek value amid ongoing uncertainty.