In Q4 FY 2025, Walmart's profitability took a hit from increased selling, general, and administrative (SG&A) expenses, primarily due to tech investments, variable compensation, and higher operational costs. The VIZIO acquisition added further challenges, with international operations also affected by adjustments to Flipkart’s Big Billion Days event. Despite these challenges, Walmart demonstrated resilience with a 57.4% share price increase, reflecting strong contributions from both in-store and digital sales channels. Growth in e-commerce, advertising, and new ventures underlines its robust business model, with an expected sales growth of 3-4% for Q1 FY 2026.
Walmart's overall profitability in Q4 FY 2025 was impacted by increased SG&A spending and transaction costs, which may affect future earnings.
Despite cost increases, Walmart's diversified business model and growth in e-commerce and advertising reflect its resilient performance and long-term potential.
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