Walmart Beats Holiday Expectations in First Report Under New CEO John Furner

2026-02-19 companies

Bentonville, Thursday, 19 February 2026.
Walmart posted $190.7 billion in revenue and 24% e-commerce growth, though shares slipped on cautious guidance during CEO John Furner’s inaugural earnings report for the now trillion-dollar retailer.

A Strong Debut for Furner Amidst Trillion-Dollar Expectations

In his inaugural earnings report as CEO, John Furner oversaw a quarter where Walmart (WMT) not only solidified its position as a retail titan with a market capitalization exceeding $1 trillion but also surpassed Wall Street’s expectations for the holiday season [1][3]. On Thursday, February 19, 2026, the company reported fourth-quarter revenue of $190.7 billion, marking a 5.6% increase from the previous year [8]. This performance edged out analyst projections, which had pegged revenue at $190.43 billion [3]. Adjusted earnings per share came in at $0.74, slightly ahead of the anticipated $0.73 [3][8]. Despite these robust figures, the market reaction was tepid, with shares dipping approximately 3% in premarket trading as investors digested the retailer’s cautious forward-looking guidance [3][4].

Digital and Advertising Engines Fire on All Cylinders

Under the surface of the headline numbers, Walmart’s strategic pivot toward high-growth digital channels is showing significant momentum. Global e-commerce sales surged 24% in the fourth quarter, driven largely by store-fulfilled pickup and delivery services [8]. In the U.S. specifically, e-commerce growth hit 27%, capturing a record share of sales for the segment [2][3]. Complementing this digital expansion is the company’s rapidly scaling advertising business. Global advertising revenue grew 37%, a figure that includes contributions from the acquisition of VIZIO, while the U.S.-specific Walmart Connect platform saw a 41% jump [2][8]. These high-margin revenue streams are critical to Furner’s strategy of diversifying profit sources beyond traditional retail margins [2].

Conservative Outlook Weights on Investor Sentiment

While the holiday results painted a picture of resilience, Walmart’s outlook for fiscal year 2027 introduced a note of caution. The company forecasted net sales growth of 3.5% to 4.5% and adjusted earnings per share between $2.75 and $2.85 [3][6]. This guidance appears to have tempered enthusiasm, particularly given the stock’s impressive run-up; shares had climbed roughly 22% over the past year and 14% year-to-date prior to the report [3]. The retailer also noted expectations for price increases stemming from inflation and tariff adjustments to ease in the coming months, suggesting a complex macroeconomic environment ahead [3]. To bolster shareholder value, the company announced a new $30 billion share repurchase authorization, replacing the previous $20 billion program approved in 2022 [3][8].

Strategic Continuity in a New Era

Furner, who officially succeeded Doug McMillon on February 1, 2026, inherits a company that has successfully navigated the shift to omnichannel retail [3][4]. The results reflect a strategy already in motion, emphasizing speed and scale to drive market share gains [3]. Chief Financial Officer John David Rainey highlighted that the company’s ability to serve customers at scale is translating into continued market share growth [3]. With the stock recently switching to the Nasdaq and achieving the $1 trillion valuation milestone earlier this month, the pressure remains high for leadership to demonstrate that Walmart can sustain this growth trajectory against competitors like Amazon, whose annual revenue recently topped Walmart’s for the first time [3][5]. The focus now turns to whether the retailer’s evolving business mix can support its valuation throughout the remainder of the fiscal year [4].

Sources

Retail sector Market capitalization