What drove WMT's earnings growth in 2025?

Walmart's earnings growth in 2025 was driven by several key factors:

1. **Increase in Net Sales**: Walmart reported a significant increase in net sales, which climbed from $642.637 billion in 2024 to $674.538 billion in 2025. This rise was primarily due to an increase in comparable sales, reflecting stronger customer spending and the company's ability to retain customer purchases.
2. **Strategic Investments in eCommerce and Technology**: Walmart's investments in e-commerce and technology, including AI, have positioned the company well for future growth. This strategic focus has likely contributed to increased online sales and a more diversified revenue stream.
3. **Global Presence and Omni-Channel Strategy**: Walmart's global presence, with over 10,750 stores and a strong brand, has provided a competitive edge in the retail sector. The company's omni-channel strategy, which integrates physical and digital channels, has likely enhanced customer shopping experience and boosted sales.
4. **Gross Profit Rate Improvement**: Walmart's gross profit rate increased to 24.1% in 2025, up from 23.7% in the previous year. This improvement was primarily due to pricing strategies and growth in higher-margin businesses, indicating a more profitable sales mix.
5. **Market Dominance and Brand Power**: Walmart's market dominance and strong brand power have allowed the company to attract and retain customer spending, even in a competitive retail environment. This loyalty has likely contributed to consistent revenue and earnings growth.

In summary, Walmart's earnings growth in 2025 was driven by a combination of increased net sales, strategic investments, global reach, improved gross profit, and strong brand dominance. These factors collectively contributed to the company's robust financial performance and ability to generate shareholder value.