What surprises can investors expect from WMT's upcoming reports?

**Walmart's upcoming earnings report is expected to show strong performance**, and here are the key surprises that investors should anticipate:

1. **Expected EPS and Revenue**: Analysts are projecting an EPS of $0.58 for the upcoming quarter, which represents a 3.33% decline from the same quarter last year. However, for the full year, the EPS is expected to rise to $2.60, indicating a 3.6% increase from the previous year. This suggests a potential rebound in earnings growth.

2. **Sales Growth and Profit Margins**: Walmart's sales are expected to grow by 2.7% year-over-year to $165.87 billion, with a revenue forecast of $703.73 billion for the entire year, indicating a 3.34% increase. The company's operating income is projected to grow between 3.5% to 5.5% for fiscal year 2026, with an expected EPS between $2.50 and $2.60. This reflects a positive outlook on the company's sales and profit growth.
3. **Strategic Developments**: Walmart has been focusing on digital commerce and supply chain innovations, which have led to positive growth in digital commerce and operating income. The company's investments in digital transformation and acquisitions, such as Vizio, are expected to continue to diversify revenue streams and enhance customer engagement.
4. **Dividend Growth**: Walmart has a history of dividend growth, with a recent 13% annual increase, marking its 52nd consecutive year of dividend growth. This could be a positive surprise for income-focused investors.
5. **Inventory Management and Gross Margin**: The company has seen an increase in inventory levels, which is beneficial for managing stockouts and supporting sales growth. Additionally, Walmart's consolidated gross margin improved by 53 basis points, driven by inventory management and business mix optimization.

Overall, while the upcoming quarter's EPS may show a slight decline, the full-year outlook and strategic initiatives suggest that Walmart is well-positioned for growth, which could lead to positive surprises in the earnings report. Investors should also monitor the company's performance in international markets, particularly in China and India, which have shown strong sales growth.