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Walmart is heading higher after reporting Q4 (Jan) results with modest upside and announcing a new $30.00 bln share repurchase authorization, its largest to date. The initial reaction was negative due to cautious guidance for Q1 (Apr) and FY27, but shares recovered during a reassuring earnings call led by new CEO John Furner, who took the helm on February 1. The company also announced a new $30 bln share buyback authorization, the largest in its history.

• Q1 (Apr) and FY27 guidance came in cautious, reflecting prudent assumptions as the company enters a leadership transition and peaks in investment spending. The company indicated FY27 will mark the peak of annual spending on supply chain automation and store remodels.
• Walmart US comps (ex fuel) rose +4.6%, up from +4.5% in Q3, with strength driven largely by households earning over $100,000. Lower-income households (under $50,000) continue to face budget pressure, with some customers managing spending paycheck to paycheck. General merchandise posted low-single digit growth for Walmart US, extending its recovery and led by strength in fashion.
• Sam's Club US comps (ex fuel) increased +4.0%, up from +3.8% in Q3, with eCommerce sales climbing 23% yr/yr.
• Walmart International sales jumped 11.5% yr/yr (7.5% CC) to $35.90 bln, led by China, Walmex, and Flipkart, with momentum in both stores and eCommerce.

Briefing.com Analyst Insight:

Walmart delivered a solid Q4 print with healthy underlying trends across its core segments, but cautious near-term guidance initially weighed on shares. With John Furner newly installed as CEO, it is possible the company is taking a more conservative stance with guidance to start the year, a view somewhat supported by management's commentary that it is prudent to begin with measured expectations. At the same time, Walmart is entering a peak investment phase in FY27 tied to supply chain automation and store remodels, which may also be tempering guidance.

Encouragingly, US consumer spending remains resilient, particularly among higher-income households, and general merchandise trends continue to improve. International operations are contributing nicely, and Sam's Club remains a steady performer with strong eCommerce growth. After a brief dip on the outlook, the stock rebounded during the call, suggesting investors found the tone and fundamentals reassuring. Over the next several quarters, consistency in execution under the new CEO will be key to sustaining momentum.