How did WMT's Q4 2025 earnings surprise investors?

**Walmart's Q4 2025 earnings exceeded investor expectations in terms of net income and revenue**, as evidenced by the company's reported financial results and market reactions. 1. **Net Income and Surprise**: - Walmart's net income for Q4 2025 was $5.43 billion. - The revenue surprise for the quarter was $544 million. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |WMT|WMT.N|Walmart|2025 Q1|179.90506329113924|5.307E9|169| |WMT|WMT.N|Walmart|2025 Q2|-41.50006208866261|4.711E9|169| |WMT|WMT.N|Walmart|2025 Q3|633.1259720062209|4.714E9|169| |WMT|WMT.N|Walmart|2025 Q4|-4.45579429376541|5.425E9|169| |code|Ticker|Name|Date|Net Income|market_code| |---|---|---|---|---|---| |WMT|WMT.N|Walmart|2025 Q1|5.307E9|169| |WMT|WMT.N|Walmart|2025 Q2|4.711E9|169| |WMT|WMT.N|Walmart|2025 Q3|4.714E9|169| |WMT|WMT.N|Walmart|2025 Q4|5.425E9|169| 2. **Analyst Expectations and Performance**: - Analysts had estimated an EPS of $0.53 for the quarter. - Walmart reported a GAAP EPS of $0.65 and an adjusted EPS of $0.66, both exceeding the estimated EPS. - Revenue for the quarter was $180.6 billion, surpassing the estimated $180,009.81 million. 3. **Market Reaction and Guidance**: - Despite the earnings beat, Walmart's stock dropped as the company provided cautious guidance for 2025, which may have raised concerns among investors. - The soft FY26 outlook disappointed the street, indicating potential challenges or uncertainties in the upcoming year. 4. **Growth Drivers and Segments**: - Walmart's growth was supported by expanding e-commerce capabilities and increased pickup options, which contributed to sales growth across all business segments. - The company's performance highlights the continued importance of omnichannel retail strategies and the demand for value-oriented shopping in an inflationary environment. In conclusion, Walmart's Q4 2025 earnings exceeded investor expectations, with strong net income and revenue figures. However, the cautious guidance for 2025 and soft outlook for 2026 has led to some concerns among investors, despite the company's robust performance in the recent quarter.