Walmart Attracts More High-Income Shoppers, Boosting Profits

Bassyonni

Published: February 21, 2026 9:33 AM ET

Walmart Attracts More High-Income Shoppers, Boosting Profits

Walmart Inc. has reported notable financial growth in its fourth quarter. The company generated revenue of $190.7 billion, reflecting a year-over-year increase of 5.6%. Operating income also showed a robust hike of 10.8%, reaching approximately $8.7 billion.

Quarterly Sales and E-commerce Growth

Net sales for the fourth quarter nearly hit $189 billion, marking an increase of 5.6%. Global e-commerce sales soared by 24%, driven by enhancements in store fulfillment and the popularity of Walmart’s third-party marketplace.

Performance of Walmart U.S.

Net Sales: Jumped 4.6%, totaling $129.2 billion, excluding Sam’s Club.
Same-Store Sales: Remained flat compared to the previous year.

For the entire fiscal year 2026, Walmart’s revenue grew by 4.7%, equating to $713.2 billion, while net sales were $706.4 billion. Looking ahead, the company anticipates a net sales growth between 3.5% and 4.5% for fiscal year 2027, alongside an operating income increase expected to fall between 6% and 8%.

CEO Insights and Market Trends

John Furner, recently appointed CEO, highlighted key consumer trends during his first earnings call. He noted that Walmart benefited from an increase in customer traffic, particularly from households earning over $100,000. However, consumers with lower incomes, especially those making below $50,000, continue to feel financial pressure.

AI and Consumer Behavior

Furner emphasized the potential of AI in transforming retail, mentioning that customers using Walmart’s AI assistant, Sparky, have an average order value 35% higher than those who don’t. This indicates the growing significance of technology in enhancing customer experience and increasing sales.

Market Outlook and Investor Confidence

Analysts from Jefferies expressed that Walmart’s cautious approach to future predictions might exert short-term pressure on stock prices. Nevertheless, the company’s strategic growth plan and improved earnings quality position it favorably heading into fiscal year 2027.

Expert Opinions

Emarketer Insight: Walmart’s upgrades to its product assortment and delivery speed are attracting higher-income shoppers.
Economic Environment: The company remains optimistic despite economic challenges like rising loan delinquencies.

Walmart’s focus on catering to affluent consumers, coupled with advancements in e-commerce and technology, positions it well for continued growth and profitability in the future.