Walmart extends growth streak under new CEO as investors look past cautious guide
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Walmart reported its quarterly earnings on Feb. 19, 2026. Photo: David Paul Morris/Bloomberg via Getty Images
Walmart's growth streak continued in John Furner's first earnings report as CEO, with investors Thursday weighing strong results against a cautious outlook for the year.
Why it matters: As the nation's largest retailer, Walmart is widely viewed as a real-time gauge of U.S. consumer health — and its results suggest shoppers are still prioritizing price and convenience amid economic uncertainty.
Driving the news: Walmart said Thursday that fourth-quarter revenue rose 5.6% from a year ago, to $190.7 billion, while operating income grew 10.8%, outpacing sales.
- U.S. comparable sales increased 4.6% (excluding fuel), and global e-commerce jumped 24%, reaching a record share of U.S. sales.
- For fiscal 2026, Walmart says it expects net sales to rise 3.5% to 4.5%, with operating income growing 6% to 8%, continuing its trend of profit growth outpacing sales.
Between the lines: Furner said the majority of Walmart's product share gains again came from households earning more than $100,000 annually, suggesting price sensitivity isn't confined to lower-income consumers.
- For households earning below $50,000, "we continue to see that wallets are stretched," he said.
Zoom out: "The pace of change in retail is accelerating," Furner said in a statement. "Our financial results show that we're not only embracing this change, we're leading it."
- Walmart has been expanding its use of artificial intelligence across supply chain and digital operations.
- Its AI assistant, "Sparky," is gaining traction: Users generate average order values about 35% higher than non-users, Furner said.
- David Guggina, CEO of Walmart U.S., added that roughly half of app users have engaged with Sparky.
Context: Furner officially took the helm Feb. 1, succeeding longtime CEO Doug McMillon — meaning much of the quarter reflects strategy already underway.
What we're watching: John Mercer, head of global research at Coresight Research, tells Axios that the "relatively conservative top-line guidance" likely reflects expectations that inflation will moderate through 2026.
- Neil Saunders, managing director of GlobalData, agreed that while Walmart's revenue outlook could be seen as cautious, it remains "extremely solid" given moderating inflation.
Market impact: The outlook came in more cautious than analysts expected, sending shares swinging between gains and losses Thursday morning.
What's next: The bar for Walmart is high. Investors are watching whether 2026 guidance supports the stock's trillion-dollar valuation.
Editor's note: This story was updated with additional details.
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