Walmart reports $681bn in FY2025 revenue, with eCommerce up 16%

Overview

Walmart delivered another strong quarter and fiscal year, demonstrating solid revenue growth, eCommerce expansion, and improving operational efficiency. For Q4 FY2025, revenue increased by 4.1% YoY, while full-year revenue rose 5.1% YoY. The company’s global eCommerce sales grew 16% in Q4, reflecting strong performance in store-fulfilled pickup, delivery, and the U.S. marketplace. Walmart’s advertising business expanded by 29%, further strengthening its digital ecosystem. The company also announced a 13% increase in dividends, the largest in over a decade.

President and CEO Doug McMillon stated: “Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times. We’re gaining market share, our top line is healthy, and we’re in great shape with inventory. We’ll stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better.”

Q4 FY2025 vs. Q4 FY2024:

Total revenue recorded a value of $180.6bn (+4.1% YoY), with important changes in the activity segments.
- Walmart U.S. revenue was $123.5bn (+5% YoY), with strong general merchandise performance and eCommerce-driven growth. eCommerce revenue up 20%, fueled by store pickup & delivery and marketplace expansion. Advertising revenue (Walmart Connect) grew 24%, benefiting from a 50% increase in marketplace seller advertisers.
- Walmart International revenue declined slightly to $32.2bn (-0.7% YoY), with strength in China, Walmex, and Canada, but negatively impacted by Flipkart’s Big Billion Days timing. eCommerce grew 4%, but adjusted for Flipkart’s event shift, it showed robust expansion.
- Sam’s Club U.S. revenue recorded a value of $23.1bn (+5.7% YoY), with eCommerce sales surged 24%, led by club-fulfilled pickup & delivery and membership income grew 13%, reflecting a strong customer base.
Operating income increased to $7.9bn (+8.3% YoY), reflecting higher gross margins and eCommerce profitability.
Global eCommerce sales grew 16% YoY, led by storefulfilled pickup & delivery and U.S. marketplace.
Consolidated net income decreased slightly, to a value of $5.25bn (-4.4% YoY), but the company still demonstrated strong profitability.
Adjusted EPS was $0.65 (-4.4% YoY), excluding minor equity losses and an opioid-related settlement gain.

FY2025 performance:

Total revenue reached a continuously rising value of $681.0bn (+5.1% YoY).
- Walmart U.S. revenue rose to $462.4bn (+4.7% YoY), driven by higher transaction volumes and general merchandise strength.
- Walmart International revenue increased to $121.9bn (+6.3% YoY), with operating income (constant currency) grew 17%, driven by improved eCommerce economics.
- Sam’s Club U.S. revenue was $90.2bn (+4.7% YoY), with operating income increased to $2.4bn (+9.7% YoY).
Operating income reached to $29.3bn (+8.6% YoY), while consolidated net income rose to $19.44bn (+25.3% YoY).
Gross profit rate increased to 24.1%, compared to 23.7% in FY2024, while adjusted EPS recorded a value of $2.41 (+26.2% YoY).
Free cash flow rose to $12.7bn (+24.5% YoY), reflecting higher capital investments.
The company raises dividend 13% to $0.94 per share, largest increase in over a decade. Also, Walmart repurchases 61.9m shares, totaling $4.5bn.

Walmart projects another year of steady growth in FY26, focusing on balancing strategic investments with profitability improvements. The company expects net sales to grow between 3% – 4% YoY, accounting for a 100 basis points headwind from the leap year impact. Adjusted operating income is forecasted to increase by 3.5% – 5.5%, despite an 80 basis points impact from the VIZIO acquisition. Adjusted EPS is projected at $2.50 – $2.60, reflecting consistent earnings expansion. Capital expenditures are expected to remain at ~3.0% – 3.5% of net sales, supporting eCommerce, supply chain enhancements, and store modernization. Additionally, Walmart plans to continue its stock repurchase program, with $12bn remaining under prior authorization, reinforcing its commitment to shareholder returns while sustaining long-term business growth.

Despite the company’s expansion, WMT’s share price fell by over -6%, with investors most likely influenced by the company’s estimates for this fiscal year, which could suffer mainly due to inflation.