By Sabrina Escobar

Walmart narrowly beat fourth-quarter earnings estimates but full-year guidance was softer than expected as the company seeks to set a lower bar for its first year under new CEO John Furner.

Walmart's revenue rose 5.6% year over year to $190.7 billion, slightly better than consensus estimates calling for $190.5 billion, according to FactSet.

Adjusted earnings per share of 74 cents were modestly above projections for 73 cents.

The company's guidance fell short of expectations, however. Walmart predicts that sales for the fiscal year ending next January will increase between 3.5% and 4.5%, and that adjusted earnings per share will range from $2.75 to $2.85.

Wall Street had projected sales would grow by about 5% on an annual basis, with earnings per share of $2.97.

Shares of Walmart fell 2% in premarket trading Thursday. The stock has risen 14% this year as of the close of trading Wednesday.

The company also announced a new $30 billion share repurchase program.

This is breaking news. Check back for more updates and read below for a preview of Walmart's earnings.

Walmart's fourth-quarter earnings report Thursday morning will be the first report under CEO John Furner, who recently became the retailer's sixth CEO in about as many decades.

Furner's debut is a big deal. He is taking the reins of the world's largest retailer at a critical crossroads for the industry. The way Walmart adapts to a new era of shopping powered by artificial intelligence could set the standard for other retailers, making Furner's vision for the company all the more important for investors and competitors alike.

His predecessor, Doug McMillon, laid the groundwork for the company's successful digital transformation, which culminated in Walmart's stock switching over to the Nasdaq Stock Market from the New York Stock Exchange last year. While Furner has officially been in the role for less than a month, markets are already itching to learn more about his priorities and how he plans to keep the company's momentum and market share gains going.

"WMT appears to be closing its chapter of building out the foundation for its digital capabilities, including AI, and is shifting gears into acceleration mode," wrote Krisztina Katai, an analyst at Deutsche Bank.

The company's holiday results are also important -- although by this point, it feels like "ancient history," wrote Michael Baker, an analyst at D.A. Davidson. Walmart's sheer scale means that it is often used as a bellwether for consumer demand.

Analysts predict Walmart will post adjusted earnings of 73 cents a share on $190.5 billion in revenue, according to FactSet consensus estimates. U.S. same-store sales, which measure sales growth at stores open more than a year, are projected to rise by 4.3% from a year ago.

Walmart's view of where the consumer is heading and the outlook for 2026 is even more crucial, Baker added.

Over the past few quarters, Walmart executives have said that consumers remain resilient. There is little to suggest they will change their tone about the overall spending environment -- but analysts are wary about the company's financial guidance.

Wall Street is projecting sales will grow by about 5% on an annual basis in the fiscal year ending next January, with earnings per share of $2.97.

Gregory Melich, an analyst at Evercore ISI, thinks those estimates are too high and added Walmart to the firm's tactical underperform list ahead of the results. Evercore's tactical calls describe an event that could affect share price in the short term, and are separate from the firm's rating, which Melich maintained at Outperform.

"With WMT near all time highs, we believe sentiment is largely positive, setting a high bar WMT to deliver against," he wrote.

That is a problem for Walmart stock, given that it is coming into the report at "extreme levels," said Jay Woods, chief market strategist at Freedom Capital Markets.

Earlier this year, Walmart became the first traditional retailer to command a trillion-dollar market capitalization. The stock is up about 14% year to date and trades a price to earnings ratio of 43 times the next 12 months' earnings -- higher than all Magnificent Seven stocks outside of Tesla.

"It may need to exceed and guide far greater than expectations to continue its impressive run," Woods added.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

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February 19, 2026 07:06 ET (12:06 GMT)

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