Walmart's earnings guidance below expectations, US stocks fall over 3% pre-market

On February 19, according to iFinD data from Tonghuashun (300033), global retail giant Walmart (WMT.US) fell more than 3% in pre-market trading on the U.S. stock market.

Earlier that day, Walmart announced its Q4 2025 earnings, showing revenue of $190.66 billion, up 5.6% year-over-year, surpassing market expectations. Comparable store sales, including online sales, increased by 4.6%, compared to 4.5% in the previous quarter. Global e-commerce sales grew by 24%.

Although Walmart delivered another impressive quarterly sales report, the company expects current quarter sales to grow between 3.5% and 4.5%, with earnings per share (EPS) between 63 cents and 65 cents. It projects full-year 2026 sales reaching $706.4 billion, with EPS of $2.64. This is slightly below Wall Street forecasts. According to analysts surveyed by FactSet, EPS for the first quarter is expected to be 68 cents. For the full year, they forecast sales of $712.6 billion and EPS of $2.64.

Since its last quarterly earnings report, Walmart’s stock price has risen over 25%. On February 3, during U.S. market hours, Walmart’s market capitalization surpassed $1 trillion for the first time, becoming the first non-tech company to reach a market value exceeding $1 trillion.

Given that many Americans are carefully considering their spending due to inflation, Walmart’s performance is seen as a barometer of consumer spending, as it has a large customer base. According to Walmart, over 150 million customers visit its websites or stores each week.

Although inflation has cooled, U.S. consumer prices have surged about 25% over the past five years. Many economists expect more companies to pass higher U.S. tariff costs onto customers in the coming months. The market views Walmart’s earnings guidance as an indication of potential volatility in the economic environment ahead.