Walmart Reports Better than Expected Q1 FY’25 Results

Walmart Inc. (NYSE: WMT) has released its first-quarter results, showcasing growth in both revenue and operating income. The quarter was marked by a significant increase in eCommerce sales, with the company maintaining a strong position in the market. As Walmart looks ahead, it has issued guidance for the upcoming quarter and reiterated its outlook for the fiscal year 2026.

Walmart Reports Double Beat on Revenue, EPS with Q1 FY’26 Results

In the first quarter of fiscal year 2026, Walmart Inc. reported a revenue of $165.6 billion, reflecting a 2.5% increase, or 4.0% in constant currency terms. This performance was only slightly above the expected revenue of $165.59 billion but marked a steady growth trajectory for the company. The operating income also saw an increase of 4.3%, with an adjusted growth of 3.0% in constant currency terms. The company attributed this growth to higher gross margins and an increase in membership income.

Walmart’s eCommerce sales experienced a robust 22% growth globally, driven by store-fulfilled pickup and delivery services, as well as its marketplace operations. This surge in online sales contributed significantly to the overall revenue growth. Additionally, Walmart’s global advertising business grew by 50%, with a notable 31% increase in Walmart Connect sales in the U.S., further supporting the company’s financial performance.

In terms of earnings per share (EPS), Walmart reported a GAAP EPS of $0.56 and an adjusted EPS of $0.61. The adjusted EPS surpassed the expected EPS of $0.57, demonstrating the company’s ability to deliver strong financial results amidst a dynamic operating environment. This performance reflects Walmart’s strategic investments in eCommerce and its focus on enhancing customer experiences through various channels.

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Walmart Reiterates Fiscal 2026 Guidance

Looking ahead to the second quarter, Walmart has issued guidance indicating an expected increase in net sales by 3.5% to 4.5% in constant currency terms. This projection is based on the previous year’s second-quarter net sales of $167.8 billion. The company remains optimistic about its growth prospects, despite the challenges posed by currency rate fluctuations and other external factors. Walmart’s management has emphasized its strategic investments in technology and infrastructure to support this anticipated growth.

For the fiscal year 2026, Walmart has reiterated its original guidance, which predicts a net sales increase of 3.0% to 4.0% in constant currency terms. The company also expects adjusted operating income to grow by 3.5% to 5.5%, with an adjusted EPS ranging from $2.50 to $2.60. These projections reflect Walmart’s confidence in its long-term business strategy and its ability to navigate through the uncertainties of the global market.

Walmart’s guidance also includes considerations for potential headwinds and tailwinds, such as the impact of the acquisition of VIZIO and the effects of lapping a leap year.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.