By Sarah Nassauer
Walmart's new CEO is starting on a high point.
The retailer reported strong sales growth in its latest quarter as it continued to attract more shoppers of all income groups to its groceries and speedy online delivery. Walmart also grew revenue from advertising, a small, but fast-growing and profitable part of its businesses.
U.S. comparable sales, those from stores and digital channels operating for at least 12 months, grew 4.6% in the quarter ended Jan. 30, strengthened by market share gains, especially in upper-income households, the company said Thursday. Online sales in the U.S. jumped 27%.
It is a sign that Walmart is on solid footing as new Chief Executive John Furner takes the helm. The retailer has clocked years of quarterly sales growth amid a changing consumer environment with more buyers moving online and shoppers hunting for lower prices, especially for groceries. Earlier this month the company's stock surpassed a $1 trillion valuation for the first time.
Walmart also said consumers continue to spend cautiously, especially on nongrocery items. In the U.S., its largest business by revenue and profit, profit margins grew thanks to grocery sales, membership through its Walmart Plus program and advertising sales. But that growth was offset by slower sales growth in general merchandise, a dynamic that has persisted for several quarters.
In the U.S. prices for groceries grew less than 1% in the most recent quarter, while prices for general merchandise items rose 3.2%, a higher jump than the preceding quarter.
Walmart said it expects steady growth in the current year, with 3.5% to 4.5% growth in net sales and operating income growth of 6% to 8% for the full year.
Overall Walmart reported net sales of $190.7 billion for the quarter ended Jan. 31, up 5.6% from the same period last year. That is slightly ahead of analyst's estimates for $190.5 billion, according to FactSet. Net income fell 19.4% to $4.2 billion in the most recent quarter, below analyst's estimates.
Write to Sarah Nassauer at Sarah.Nassauer@wsj.com
(END) Dow Jones Newswires
February 19, 2026 07:02 ET (12:02 GMT)
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