Walmart Notes Steady Revenue Growth In Q1

• Revenue growth of 2.5%, up 4.0% in constant currency (cc)1 
• Operating income growth of 4.3%, or 3.0% adjusted (cc)1
• eCommerce up 22% globally
• GAAP EPS of $0.56; Adjusted EPS1 of $0.61
• Company issues net sales guidance for Q2; reiterates outlook for FY26

Walmart Inc. (NYSE: WMT) announces first-quarter results with steady growth in revenue and operating income. Globally, eCommerce grew 22% with digital mix up across all segments. Walmart U.S. comp sales2 up 4.5% with strong growth in health & wellness and grocery. Looking ahead, the Company issues guidance for the second quarter with net sales expected to increase 3.5% to 4.5% in constant currency (“cc”).1 The Company’s outlook for fiscal year 2026 remains unchanged from prior guidance.

First Quarter Highlights

• Revenue of $165.6 billion, up 2.5%, or 4.0% (cc)1; includes ~100 bps headwind from lapping leap day
  
  
• Global eCommerce sales grew 22%, led by storefulfilled pickup & delivery and marketplace
  
  
• Global advertising business3 grew 50%, including VIZIO; Walmart Connect in the U.S. up 31%
  
  
• Membership and other income up 3.7%, including 14.8% growth in membership income
  
  
• Gross margin rate up 12 bps, led by Walmart U.S.
  
  
• Operating income up $0.3 billion, or 4.3%, adjusted up 3.0% (cc)1 due to higher gross margins and growth in membership income; also benefited from improved economics in eCommerce; includes ~250 bps headwind from lapping leap day
  
  
• Adjusted EPS1 of $0.61 excludes the effect, net of tax, of a net loss of $0.05 on equity and other investments
  
  
• ROA at 7.5%; ROI1 at 15.3%, up 30 bps
  
  
• The Company raised $4 billion in long-term debt for general corporate purposes at favorable rates

"We delivered a solid first quarter in a dynamic operating environment. We’re serving customers and members in more ways, which is fueling our growth. We’re well positioned, maintaining flexibility to navigate the nearterm while continuing to invest to create value for the long-term.” Doug McMillon President and CEO, Walmart

Balance Sheet and Liquidity

• Cash and cash equivalents of $9.3 billion
• Total debt of $52.9 billion2
• Operating cash flow of $5.4 billion, an increase of $1.2 billion
• Free cash flow1 of $0.4 billion, an increase of $0.9 billion
• Repurchased 50.4 million shares, or $4.6 billion3
• Inventory of $57.5 billion, an increase of $2.1 billion, or 3.8%

Source : Walmart

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