Walmart Inc. reported a 4% increase in revenue to $180.6 billion for the fourth quarter, slightly surpassing Wall Street's expectations. Despite this, the company's shares fell over 6% after it issued a cautious outlook for fiscal year 2026, projecting net sales growth of 3% to 4% and adjusted operating income growth between 3.5% to 5.5% on a constant currency basis. This forecast, which included earnings per share of 65 cents and adjusted earnings per share of 66 cents, fell short of analyst expectations, contributing to the stock's decline. The retailer's performance was bolstered by a 20% surge in U.S. e-commerce sales, driven by store-fulfilled pickup and delivery services. Global e-commerce sales rose 16%, and the company's advertising business grew by 29%. Walmart also saw gains from higher-income shoppers, with households earning over $100,000 contributing significantly to its market share increase. CFO John David Rainey and CEO Doug McMillon noted that the company's cautious guidance was due to uncertainties related to consumer behavior and global economic conditions. Walmart's US grocery business, which accounts for 60% of its total sales, and its subscription service, Walmart+, both experienced double-digit growth. Additionally, Walmart introduced Wally, a new AI agent to enhance its supply chain operations, with e-commerce penetration reaching 18%. Walmart's cautious outlook had a broader impact on the market, contributing to a significant sell-off. The Dow Jones Industrial Average dropped 748 points, or 1.7%, marking its worst day of the year so far. The S&P 500 and Nasdaq Composite also experienced declines, reflecting investor concerns about economic growth and potential tariff impacts. This downturn occurred in an economy where consumer spending drives 70% of activity, highlighting the significance of Walmart's performance as an indicator of consumer health. The company also announced a 13% hike in its dividend.