Dive Brief:

• Walmart’s U.S. comparable-store sales, excluding fuel, rose 4.6% during the fourth quarter of fiscal year 2025. This growth was driven by increased transactions, unit volumes, and share gains from upper-income households, as reported by the retailer on Thursday morning.
• The U.S. grocery segment experienced mid-single-digit growth and remains a standout category for the retailer, as highlighted by CFO John David Rainey during the earnings call.
• E-commerce sales for Walmart U.S. saw a notable increase of 20%, with over 500 million orders fulfilled from stores.

Dive Insight:

The upward trend in Walmart’s comparable sales during the fourth quarter can be attributed to an increase in customer transactions, both in-store and online. Walmart President and CEO Doug McMillon shared these insights with investors during the recent earnings call.

While Walmart acknowledged grocery as a strong-performing category, the retailer also faced significant like-for-like inflation, predominantly driven by egg prices, for the second consecutive quarter. According to the company’s earnings presentation, the like-for-like grocery inflation in Q4 was approximately 170 basis points, a rise from around 100 basis points in the previous quarter.

The growth in the grocery category was fueled by higher transaction volumes, increased units sold, and share gains, along with robust e-commerce performance. Walmart reported broad-based sales strength across various food categories, particularly in dairy, fresh meat, and produce.

Additionally, sales of popular GLP-1 drugs contributed to Walmart U.S.’s mid-teens growth in the health and wellness segment. The company’s recent introduction of same-day pharmacy delivery has garnered a strong initial response, according to McMillon.

In terms of e-commerce, Walmart experienced improved profitability during Q4, particularly in the U.S., where the company noted an 80% reduction in e-commerce losses compared to the previous year, as stated by Rainey.

During the quarter, Walmart expanded its same-day delivery service from stores to reach 93% of U.S. households. This expedited delivery option has proven to be popular, accounting for over 30% of orders. To support this growth, the company is increasing its fulfillment center capacity and investing in automation to optimize delivery routes.

McMillon emphasized the importance of awareness regarding Walmart’s extensive online assortment and improving delivery speeds. He stated, “If I could change anything about how we’ll proceed today, it’d be that more people know about our breadth of assortment online and our increasing delivery speed.” He further noted that Walmart’s omnichannel position is a significant advantage as the retailer works to meet customer needs through a combination of curbside pickup, in-store shopping, and various delivery options.

Looking ahead, Walmart anticipates a “normalized year” with inflation projected between 1%-2%, although some anomalies, such as rising egg prices, are expected. Walmart U.S. President and CEO John Furner emphasized that the company does not have any explicit assumptions regarding tariffs in its guidance.

Walmart executives conveyed confidence in the company’s outlook as it continues to diversify high-revenue segments, including its Walmart+ membership program, online marketplace, and advertising initiatives. Rainey noted that advertising and membership combined accounted for slightly more than a quarter of the company’s overall operating income in Q4.

Rainey stated, “The way we’ve designed and grown our evolving business model with more diversified and durable sources of profit like advertising and membership has enabled us to grow operating income faster than sales.”