Walmart (WMT) 4th Annual Evercore ISI Consumer and Retail Conference summary

Business performance and growth drivers

• Unit-driven revenue growth, especially in Sam's and U.S. markets, with e-commerce up 20% year-over-year.

• Walmart+ and advertising now contribute about 20% of operating income growth, with members spending twice as much as average customers.

• Delivery has surpassed pickup in e-commerce, with express delivery under three hours boosting profitability.

• Marketplace categories are seeing 20–30% year-over-year growth, driven by broader third-party assortment.

• Sam's Club has returned to expansion, driven by strong member engagement and digital tools like Scan & Go.

Strategic investments and international focus

• Geographic footprint is stable, with China and India as key growth markets; Sam's Clubs in China and Flipkart/PhonePe in India are performing strongly.

• PhonePe is expanding services beyond payments, with high user engagement and potential for international growth.

• Advertising and fulfillment services are major investment areas, with potential to double or quadruple advertising as a percent of GMV.

• Financial services, especially post-Capital One, are seen as a significant growth opportunity in the next five years.

Pricing, margin, and automation

• Price gaps are stable, with 7,000 grocery rollbacks (up 50% YoY), mostly vendor-funded but some Walmart-funded for tactical pricing.

• EBIT margin has no internal cap; focus is on balancing reinvestment and margin growth.

• Automation in distribution centers (15 of 42 converted) and stores is increasing throughput and reducing headcount, with full network conversion planned.

• Automation is expected to drive a 20% increase in unit velocity and future margin benefits.