Walmart Q1 Earnings: Total Revenue Reaches $177.75 Billion, Global E-commerce Sales Up 26% YoY

Walmart recently announced its financial results for the first quarter of fiscal year 2027, along with its full-year and second-quarter guidance for the same fiscal year. Data shows that for the three months ended April 30, 2026, Walmart achieved revenue of $177.75 billion, a 7% year-over-year increase, surpassing market expectations. Adjusted earnings per share were 66 cents, in line with market forecasts. Net profit for the period was $5.33 billion, up 18.7% year-over-year.

During the reporting period, several of Walmart's growth businesses recorded high growth rates: global e-commerce sales increased by 26% year-over-year; sales on its U.S. third-party marketplace grew nearly 50%; global advertising revenue rose 37% year-over-year; comparable store sales in the U.S. grew 4.1%, with transaction growth hitting a six-quarter high; and its market share gain in the fashion category was the highest in five years. Furthermore, the report stated that Walmart serves over 150 million customers weekly through online and offline channels, with the current market share gains primarily coming from high-income households earning over $100,000 annually.

The full-year guidance for fiscal 2027 indicates adjusted earnings per share are expected to be in the range of $2.75 to $2.85 (below the market expectation of $2.91), with full-year net sales projected to grow between 3.5% and 4.5%. For the second quarter of fiscal 2027, adjusted EPS is expected to be between 72 and 74 cents (below the market expectation of 75 cents), with quarterly net sales projected to grow 4% to 5%.

Walmart's cautious guidance is directly linked to current pressures in the consumer environment. Recent conflicts in the Middle East have pushed up gasoline prices, with the current average U.S. gas price about 45% higher than a year ago. U.S. consumer confidence hit a new low in May. Combined with persistent inflation, high interest rates, and global trade friction, consumer budget pressures continue to rise. Data from Walmart and Sam's Club gas stations in the U.S. shows that the average amount of fuel purchased per transaction has fallen below 10 gallons for the first time since 2022, reflecting the strain on consumer spending.

The sales resilience in the retail sector during the first quarter was partly supported by tax refunds. Walmart CFO John David Rainey mentioned that after the tax refund effect gradually fades in the second quarter, consumers will face more pronounced pressure from gas prices. Gasoline prices created a $175 million headwind for the company in Q1, and this figure is expected to increase further in Q2. The company has already factored the impact of fuel price volatility into its Q2 guidance, which projects operating income for the quarter to be at its best level in nearly 15 years. If fuel prices remain at current highs, the company will prioritize absorbing the cost pressure and has no immediate plans for price increases.

Rainey also noted that the current consumer market shows a clear 'K-shaped' divergence, with high-income households showing strong confidence across multiple categories, while lower-income groups exhibit stronger budget-consciousness, with some already in financial distress. He stated that Walmart's current business performance remains solid, with delivery efficiency continuously improving. Approximately 60% of U.S. online orders can be delivered within 30 minutes. Its value proposition of low prices combined with convenience continues to attract new customers, and the company's various strategic initiatives are progressing as expected.

It is worth noting that during this same earnings season, other major U.S. retailers like Target, Home Depot, and Lowe's reported better-than-expected Q1 sales data, but their subsequent outlooks were generally cautious. The direction of consumer spending after the complete dissipation of the tax refund effect has become a core variable influencing the future performance of the U.S. retail sector.