Walmart’s Q4 Shows Who’s Winning the Grocery Shift

Walmart Inc. reported fourth quarter revenue of $190.7 billion, up 5.6% year over year. U.S. comparable sales excluding fuel rose 4.6%. E commerce sales jumped 27% in the U.S. and 24% globally. Operating income climbed faster than sales.

Those are strong numbers. But the real story sits inside them.

Digital Is Driving the Grocery Cart

Walmart’s growth did not come from traffic alone. Digital transactions led the gains.

Grocery comps rose in the mid single digits, fueled by fresh and pantry. Online grocery posted double digit growth as more shoppers chose delivery and pickup. Fast delivery under three hours grew more than 60% for the year, and 35% of store fulfilled orders now arrive within that window.

Executives made it clear that stores now function as digital hubs. Nearly half of U.S. e commerce fulfillment center volume runs through automation. 23 of 42 regional distribution centers are in some stage of retrofit.

This is not incremental improvement. It is structural change.

AI Is Quietly Lifting Baskets

Walmart’s AI shopping assistant, Sparky, continues to shape results. Customers who use it generate an average order value about 35% higher than those who do not.

Leadership says the strategy follows a simple principle: build once, scale globally. The company layers AI on existing platforms to reduce costs and speed execution.

At the same time, only 15% of U.S. shoppers say they use AI tools for grocery shopping, according to dunnhumby. Trust remains a hurdle. Yet Walmart is already monetizing early adoption.

That gap between usage and performance could matter.

Grocery Penetration Hits 72%

A new dunnhumby study shows Walmart’s grocery penetration reached a record 72%, up six percentage points year over year. Mass retailers now match traditional supermarkets at 79% penetration for the first time.

Financial strain explains much of that shift. 70% of working age Americans struggle to cover a $400 emergency expense. Consumers perceive food inflation near 20%, even though the actual rate sits far lower.

Shoppers say affordability drives where they shop. Walmart responded with about 6,200 price rollbacks in the quarter, up 23% from last year.

Yet the company also gained share among households earning more than $100,000 annually. Higher income customers chase convenience. Lower income customers chase value. Walmart appears to offer both.

Membership and Advertising Add Fuel

Walmart+ Membership revenue grew in the double digits in the fourth quarter. Walmart+ income increased globally by 15.1%. Advertising revenue rose 37%, including Vizio, and local advertising reached nearly $6.4 billion for the year.

E commerce surpassed $150 billion for the full fiscal year for the first time. That growth reached nearly 25%.

For readers tracking reporting periods and guidance, you can review our updated Walmart fiscal year calendar
for context around these results.

What Walmart Is Signaling for 2027

For fiscal 2027, Walmart expects net sales growth of 3.5% to 4.5% and adjusted operating income growth of 6% to 8%. Executives described the outlook as conservative and aim to outperform it.

The company operates more than 10,900 stores across 19 countries and serves roughly 280 million customers each week.

The numbers show growth. The strategy shows acceleration.

Retail is not just moving online. It is becoming automated, AI layered and store powered at the same time.

And right now, Walmart is building that system at scale.