The grocer's fourth quarter success is driven by rising e-commerce profitability, an expanded assortment, and a focus on low prices and convenience for its shoppers.

Table of Content

Q4 2025 Performance Q4 Growth vs Q3 Growth Key Highlights Future Outlook
 

In its fourth-quarter performance, the 63-year-old retailer has marked a transformational phase by building on the robust momentum from Q3. Leveraging five years of strategic investments in its integrated omnichannel model, Walmart not only showcased strong gains in sales and brand assortment but also accelerated growth in alternative revenue streams like membership and retail media. This sharper focus on enhanced fulfillment capabilities and digital innovation underscores Walmart's commitment to driving profitability and sustaining long-term growth in an increasingly competitive retail landscape.

Q4 2025 Performance 

Net Sales Growth 

  • $180.6 billion, up 4.1% overall or 5.3% on a constant currency basis.

Global eCommerce Sales

  • Grew by 16%, led by store-fulfilled pickup & delivery and U.S. marketplace, though growth was negatively impacted by the timing of Flipkart’s Big Billion Days (BBD) sales event.

Global Advertising Business

  • Grew by 29%, including 24% growth for Walmart Connect in the U.S.

Acquisition

  • Completed the acquisition of VIZIO.
 

Q4 Growth Over Q3 

Net Sales Growth 

  • Q3: Walmart reported a 5.5% year-over-year increase in net sales, with U.S. comparable sales up 5.3%.
  • Q4: Walmart U.S. delivered a 5.0% sales increase, reaching $123.5 billion. Although slightly lower than Q3’s overall percentage, the focus in Q4 shifted toward enhancing profitability through strategic revenue streams.

Membership & Alternative Revenue

  • Q3: Membership programs, along with advertising and retail media, played a key role in driving growth—with record membership counts and high engagement levels.
  • Q4: Membership remains the standout performer, growing at a pace that outstrips overall sales. As CFO John David Rainey noted, return on investment improved approximately 50 basis points to 15.5% a level last seen in 2016 underscoring how these alternative revenue streams are not only supplementing sales but also funding further investments in the core omni-channel business.

E-Commerce and Delivery Enhancements

  • Q3: Online sales surged by 22%, driven by Walmart’s store-fulfilled delivery model that pushed a remarkable $2.5 billion monthly run rate, with over 30% of orders including paid expedited delivery.
  • Q4: Building on this digital success, Walmart further improved delivery speeds and expanded same-day pharmacy delivery. These enhancements are designed to meet evolving customer expectations across grocery, pharmacy, and general merchandise, reinforcing Walmart’s leadership in digital innovation.

Operational Efficiency & Technology Investments

  • Q3: The adoption of AI and automation was a cornerstone of operational improvements, reducing per-unit delivery costs and streamlining inventory management.
  • Q4: Continued investments in these technologies have further optimized fulfillment efficiency and improved the overall shopping experience, setting the stage for sustainable long-term growth.
 

Key Highlights 

E-Commerce Growth 

In Q3, Walmart’s e-commerce growth surged by 22%, driven by its store-fulfilled delivery model, which contributed to a $2.5 billion monthly run rate. Over 30% of orders included paid expedited delivery, reflecting strong demand for faster fulfillment. Digital grocery sales continued to strengthen, with Walmart’s online grocery share reaching 32.4% and projections indicating growth to 41.4% by 2030. Building on this momentum, Q4 saw Walmart expand its same-day delivery catchment to reach 93% of U.S. households, ensuring broader accessibility and reinforcing its leadership in digital fulfillment. The demand for expedited delivery remained strong, with over 30% of orders still opting for paid faster delivery, highlighting a continued shift in consumer preferences toward speed and convenience.

Capex Investment

With capital expenditures totaling $23.8 billion, Walmart’s investment in remodeling stores, expanding digital order capabilities, and enhancing last-mile delivery is bearing fruit. These investments support both current operational efficiency and long-term strategic growth.

Retail Media Success

In Q3, Walmart Connect’s advertising revenue increased by 26%, driven largely by marketplace sellers, setting a strong foundation for digital growth. Building on that momentum, Q4 saw global advertising revenue rise by 27% to approximately $4.4 billion, underscoring the pivotal role retail media plays in diversifying Walmart’s revenue streams. Additionally, Walmart U.S. Marketplace revenue surged by 37%, with nearly 45% of orders being fulfilled by Walmart Fulfillment Services (WFS), reflecting continued advancements in digital operations and fulfillment efficiency.

Membership Revenue 

 Walmart’s membership programs have been a real game changer. In Q3 2024, Sam’s Club memberships grew by 15% and Walmart+ saw strong double-digit gains, with these fees and ad revenues making up over half of the operating income boost that quarter. Thanks to appealing membership benefits, they achieved record numbers in new members, increased usage, and higher renewal rates. By Q4 2025, global membership income jumped 21% to about $3.8 billion, and this trend is expected to drive operating income faster than overall sales. In simple terms, these growing membership profits are not only funding Walmart’s core business investments but are also helping widen their profit margins.

 

‍Future Outlook

‍With Q4 guidance projecting further net sales growth in the 4.8% to 5.1% range, Walmart’s strategic focus on innovation and operational efficiency positions the company to remain at the forefront of the retail industry.