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Today at a glance:
1. 🛒 Walmart: E-Commerce Leads the WayWalmart just reported its January quarter (Q4 FY26), and revenue grew 6% Y/Y to $190.7 billion ($2.4 billion beat). Adjusted EPS narrowly topped expectations, marking a resilient holiday season despite a compressed shopping window. Walmart US comps rose 4.6%, matching consensus, driven by a 2.6% increase in transactions. International sales were a standout, climbing 11.5% to $35.9 billion, led by strength in China, Mexico (Walmex), and India (Flipkart).
The steady shift toward digital continued:
The Walmart US boss, John Furner, officially took over as CEO on February 1, 2026. Furner inherits a company with a healthy balance sheet, nearly $15 billion in free cash flow in FY26, and a massive new $30 billion share buyback authorization. Inventory management remains a major win, with levels growing at just half the rate of sales growth, thanks to automation in 60% of US stores and 50% of fulfillment centers. This efficiency helped adjusted operating income grow 10.5%, significantly outpacing sales growth. Despite the beat, shares saw some volatility due to a cautious FY27 outlook that missed analyst targets:
Management cited an unpredictable macro environment, noting a widening spending gap between high-income households (earning over $100k) and stretched low-income consumers. While Walmart continues to gain share across all cohorts, it is bracing for potential headwinds from tariff-related cost pressures and normalized pricing. 2. Airbus: Engine Dispute Dents OutlookAirbus closed FY25 with a mixed quarter, beating on the bottom line but missing on revenue and delivering a disappointing outlook. Q4 revenue rose 5% Y/Y to €26.0 billion (€0.8 billion miss), while GAAP EPS was €3.27 (€0.50 beat). For the full year, the company saw revenue rise 6% Y/Y to €73.4 billion and posted a record Adjusted EBIT of €7.1 billion. Airbus delivered 793 commercial aircraft in FY25, backed by a backlog of 8,754 jets.
However, shares tumbled following an unusually public and combative rebuke of engine supplier Pratt & Whitney (an RTX subsidiary). CEO Guillaume Faury explicitly accused Pratt of failing to meet its contractual commitments for engine deliveries, prioritizing the maintenance of existing airline fleets over supplying new jets. Airbus announced it has formally triggered a dispute clause in its contract to seek compensation for lost business. As a direct result of the engine shortage, Airbus significantly slashed its 2026 production guidance. The company now expects to deliver roughly 870 commercial aircraft in 2026 (well below the Wall Street consensus of 900+ jets) and generate an Adjusted EBIT of around €7.5 billion (missing the €8.2 billion expectation). The long-held goal of producing 75 A320s per month has been delayed yet again, now targeted for the end of 2027.
3. ⚙️ Analog Devices: Industrial Power Ahead...Upgrade your subscription to How They Make Money to unlock the rest.Become a PRO Member of How They Make Money to get access to this post. A subscription gets you:
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Saturday, February 21, 2026
📊 PRO: This Week in Visuals
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