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America's first black president secured more than the 270 votes in the electoral college needed to win.
In his victory speech before supporters in Chicago, Mr Obama said he would talk to Mr Romney about "where we can work together to move this country forward".
Mr Obama prevailed despite lingering dissatisfaction with the economy and a hard-fought challenge by Mr Romney.
His Democrats also retained their majority in the Senate, which they have held since 2007.
In his address, the president challenged his opponents, asking them to work with him.
With only Florida's 29 electoral votes still undecided, Mr Obama won 303 electoral votes to Mr Romney's 206.
The popular vote, which is symbolically and politically important but not decisive in the race, remains very close.'One nation' speech
"We have picked ourselves up, we have fought our way back and we know in our hearts that for the United States of America the best is yet to come," he said.
Mr Obama said he was returning to the White House "more determined, and more inspired than ever about the work there is to do, and the future that lies ahead".
He pledged to work with Republican leaders in Congress to reduce the government's budget deficit, fix the tax code and reform the immigration system.

"I so wish that I had been able to fulfil your hopes to lead the country in a different direction but the nation chose another leader and so I join with you to earnestly pray for [Mr Obama] and for this great nation," he said.
Under the US constitution, each state is given a number of electoral votes in rough proportion to its population. The candidate who wins 270 electoral votes - by prevailing in the mostly winner-takes-all state contests - becomes president.
On Tuesday, the president held the White House by assembling solid Democratic states and a number of important swing states such as Colorado, Iowa, Pennsylvania, Michigan, Minnesota, Virginia and Wisconsin. His narrow victory in Ohio, a critical Mid-Western swing state, sealed the victory.