Walmart (WMT) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue was $173.4B, up 5.7%; reported operating income increased 30.4% and adjusted operating income rose 13.2%.

• Global eCommerce grew 23% to $30B and exceeded $100B for FY24; global advertising grew ~33% in Q4 to $3.4B for the year.

• FY24 revenue increased 6.0% to $648.1B; GAAP diluted EPS was $5.74 and adjusted EPS was $6.65.

Financial highlights

• Q4 gross profit rate rose 39 bps to 23.3%, driven by lower markdowns and pricing discipline, partly offset by category mix pressure and Flipkart event timing.

• Q4 GAAP net income was $5.5B; diluted EPS was $2.03 versus $2.32, while adjusted EPS was $1.80 versus $1.71.

• FY24 operating income rose 32.2% to $27.0B; adjusted operating income increased 10.2% to $27.1B.

• FY24 operating cash flow increased $6.9B to $35.7B; free cash flow rose $3.1B to $15.1B.

Outlook and guidance

• FY25 guidance assumes a generally stable consumer and continued global product and format mix pressure; growth rates use adjusted prior-year results.

• Q1 FY25 net sales growth is guided to 4.0%-5.0%, including an estimated ~100 bps leap-year benefit; operating income growth is 3.0%-4.5%.

• FY25 net sales growth is guided to 3.0%-4.0%, operating income growth to 4.0%-6.0%, and adjusted EPS to $2.23-$2.37 post-split.

• FY25 assumptions include net interest expense rising $100M-$200M, a 25%-26% effective tax rate, relatively flat non-controlling interest, and capex of 3.0%-3.5% of net sales.