Walmart Inc.

Global advertising grew 37% including acceleration in Walmart Connect US up 41%. VIZIO advertising achieved triple-digit growth in the quarter with VIZIO acquisition lapped in December now in base. Full year advertising businesses globally up 46% to $6.4 billion. Membership fees exceeded $4.3 billion for full year. Consolidated membership income increased more than 15% in Q4 with SAM's China up over 35% and Walmart Plus double digits. SAM's US membership income grew more than 6%. Advertising and membership fees represented nearly 1/3 of operating income in Q4. Seth Dallaire moved marketplace VIZIO advertisements data services and Walmart Plus to enterprise role to build once and scale globally.

General merchandise grew on global basis and up low single digits for Walmart US led by fashion. Several consecutive quarters of fashion growth in mid-single digits both in-store and online. Marketplace categories including cook and dine fashion home decor all grew north of 40%. Broader assortment appealing to much larger customer base with some customers coming to Walmart for first time. Merchandise category mix headwind lessening as grocery rollbacks help customers unlock purchasing power for general merchandise. Inventory up 2.6% approximately half the rate of sales growth. SG&A leveraged in Q4 first time in a while reflecting supply chain automation and productivity benefits. 12 new stores opened and 674 remodeled in past 12 months.

next fiscal year full year sales expected to grow 3.5% to 4.5% in constant currency. Operating income expected to grow 6% to 8% with higher confidence relative to prior year that can deliver upper half of framework. EPS expected $2.75 to $2.85. Q1 sales 3.5% to 4.5% with OI 4% to 6% lowest quarter due to expense timing and tariff impacts starting in Q2 last year. Capital expenditure approximately 3.5% of sales with supply chain automation spending peaking this year and next. Board authorized $30 billion share repurchase program largest to date. Operating cash flow $42 billion for FY2026 with free cash flow growth of 18%. Approach described as prudent given backdrop still somewhat unstable.

Roughly half of app users have used Sparky with average order value about 35% higher than non-Sparky customers. Sparky evolving from traditional search to intent-driven commerce helping customers convert with greater confidence. Building execution capabilities with more personalization and deeper contextual understanding. Partnership with OpenAI for ChatGPT purchasing and Alphabet for agentic commerce experiences. More than 40% of new code AI-generated or AI-assisted. Platform-centric approach of build one scale globally to reduce capital intensity. Approximately 60% of stores receiving freight from automated DCs and approximately 50% of e-commerce FC volume automated.

Majority of share gains from households making more than $100,000. Households earning below $50,000 have wallets stretched with some managing paycheck to paycheck. Government shutdown temporarily affected benefits impacting Walmart US and SAM's early in Q4. Maximum fair pricing legislation on branded drugs expected to create approximately 100 basis point headwind to full year sales with approximately 30 basis points impact in Q4. Like-for-like inflation trending little bit above 1% with food slightly less and GM slightly more. Some indicators of concern including hiring recession subdued consumer sentiment and student loan delinquencies. 6,200 rollbacks in Walmart US in Q4 up about 23% from year ago.