Walmart flagged a full-year earnings forecast of $2.75 to $2.85 per share, below analyst expectations of $2.97, triggering a 1.73% stock drop. The retail giant cited currency fluctuations, tariff risks, and slower consumer spending as key uncertainties. Fourth-quarter results beat estimates with $0.74 adjusted EPS on $190.66 billion revenue, but first-quarter guidance of $0.63 to $0.65 per share fell short of the $0.69 Street target.

Membership fees, a critical revenue stream, declined 11.2% year-over-year, excluding prior-year insurance recoveries. Despite the cautious outlook, analysts note Walmart’s everyday low-price strategy continues attracting cost-conscious shoppers, with 23% of sales now coming from its online platform. Rachel Wolff, Senior Analyst at Emarketer, emphasized Walmart’s resilience amid economic headwinds, calling its dominance in essentials a buffer against broader market volatility. The company’s AI partnerships with OpenAI and Google aim to enhance digital shopping efficiency, but near-term challenges loom large.