Inside Walmart's US$700bn Revenue Milestone Under New CEO

Walmart has crossed the US$700bn annual revenue threshold for the first time, marking a significant financial milestone as John Furner takes the helm as CEO. The retail giant's fiscal 2026 fourth-quarter results demonstrate robust profit growth outpacing sales expansion across all operating segments.

The company delivered US$190.7bn in fourth-quarter revenue, representing a 5.6% year-on-year increase. However, operating income growth proved more compelling for investors, climbing 10.8% and reflecting improved operational efficiency and margin expansion.

Adjusted earnings per share (EPS) reached US$0.74, excluding a US$0.21 loss on equity and other investments.

John's inaugural financial report as CEO showcases the culmination of strategic investments made under predecessor Doug McMillon, who stepped down in January 2025.

The results reveal a retailer successfully balancing traditional brick-and-mortar operations with digital transformation, whilst maintaining cost discipline.

Margin expansion drives profitability

Walmart's financial performance highlights improving profitability metrics beyond top-line growth. Gross margin expanded modestly, supported by enhanced inventory management practices and controlled expense ratios. Operating income growth of 10.8% significantly exceeded revenue growth, demonstrating operational leverage.

The company's membership fee revenue surged 15.1% globally, representing a high-margin revenue stream that bolsters overall profitability.

According to Walmart's segment reporting, advertising revenue grew 37%, including partnerships with VIZIO, adding another lucrative income source with minimal capital requirements.

Chief Financial Officer John David Rainey says: "We finished the year strong, and that's because of you, our 2.1 million associates around the world."

Capital allocation signals confidence

Management announced a US$30bn share buy back programme, reflecting confidence in future cash generation and shareholder value creation. This capital allocation decision follows Walmart′s recent achievement of a US$1tn market valuation, making it the first traditional retailer to reach this milestone.

The scale of the repurchase authorisation represents approximately 3% of Walmart's current market capitalisation, providing substantial flexibility for opportunistic share acquisitions.

Combined with the company's dividend payments, this creates a substantial capital return framework for shareholders. The dual approach of dividends and buybacks allows Walmart to balance immediate income distribution with long-term value creation through share count reduction.

Walmart US delivered comp sales growth of 4.6%, driven by customer traffic increases and omnichannel execution. The segment's operating income grew 6.6%, outpacing sales growth. Ecommerce sales jumped 27%, with expedited store-fulfilled delivery channels expanding more than 50%.

International and club segments contribute

Walmart International posted net sales growth of 11.5%, with strong contributions from China operations, Walmex and Flipkart. The segment's ecommerce sales climbed 17%, whilst operating margin improvements contributed to overall profitability gains.

The international division's performance demonstrates Walmart's ability to adapt its retail model across diverse markets and regulatory environments. China operations showed particular strength, whilst Walmex continued its dominant position in the Mexican market.

Flipkart's contribution to the international segment highlights Walmart's strategic acquisition approach, leveraging established platforms in high-growth markets. The Indian ecommerce platform continues to expand its market share whilst improving operational efficiency.

Sam's Club US achieved net sales growth of 2.9%, with ecommerce accounting for approximately 3.8% of comparable sales. Membership fee revenue in this segment rose 6.1%, reflecting retention and new member acquisition. Global ecommerce sales across all segments increased 24%, led by pickup, delivery and marketplace expansion.

The CEO says: "The pace of change in retail is accelerating. It's exciting. And our financial results show that we're not only embracing this change, we're leading it."

Forward guidance projects sustained growth

For fiscal year 2027, Walmart projects net sales growth of 3.5% to 4.5% in constant currency, with adjusted operating income expected to grow 6% to 8%. The guidance suggests continued margin expansion, with profit growth outpacing sales increases. Adjusted EPS is forecast between $2.75 and $2.85.

The CFO says: "Walmart is entering a new chapter and we're doing so from a position of strength. We have the right strategy in place to win. More than that, we have the right team."

The annual revenue growth of US$35bn reflects market share gains across multiple categories and geographies, positioning Walmart amongst technology companies like NVIDIA, Microsoft and Alphabet in market capitalisation terms.