Walmart reported strong fourth-quarter results for fiscal 2026, with revenues reaching $190.7 billion, up 5.6% year-over-year (4.9% in constant currency). Operating income grew faster at 10.8% to $8.7 billion, driven by grocery strength amid consumer financial pressures, robust e-commerce and advertising growth, and market share gains.
Financially strained shoppers, especially lower-income households living paycheck to paycheck, continued shifting grocery budgets to Walmart, pushing its U.S. grocery penetration to a record 72% (up 6 percentage points year-over-year), according to fresh Dunnhumby data.
Mass-channel retailers like Walmart now match traditional supermarkets at 79% penetration for the first time, while dollar stores surged to 42% (overtaking club stores).Walmart reaches over 190 million U.S. consumers monthly, about 2.5 times Dollar General's 28.6% reach. Gains were especially strong among higher-income households (over $100,000 annually), though CEO John Furner noted lower-income groups (under $50,000) prioritize convenience nearly as much as price despite stretched budgets.
Beyond groceries, general merchandise saw low single-digit gains, with fashion a standout category. Global e-commerce sales grew 24%, contributing to overall momentum.
Broader trends reflect heightened financial insecurity: 70% of Americans aged 18–54 report concerns, and perceived food inflation stands at 19.6% (over eight times the actual 2.4% rate), rising to 23.6% among those earning under $50,000.