Walmart Sees Growth In Q2, Backs FY27 Outlook After Strong Q1; Stock Down

(RTTNews) - Retail behemoth Walmart Inc. on Thursday issued positive second-quarter outlook, and maintained fiscal 2027 outlook, after reporting higher results in its first quarter. eCommerce revenues climbed 26 percent globally with strength across segments.

Meanwhile, the shares were losing around 3 percent in pre-market activity on Nasdaq.

Looking ahead for the second quarter, the company projects adjusted earnings per share to be in the range of $0.72 to $0.74, higher than previous year's $0.68.

Net sales are expected to grow 4 percent to 5 percent and adjusted operating income to grow 7 percent to 10 percent, both in constant currency, from prior year's $175.8 billion and $7.9 billion, respectively.

For fiscal 2027, Walmart continues to forecast adjusted earnings per share between $2.75 and $2.85, up from $2.64 in 2026.

The firm still expects adjusted operating income to increase 6.0 percent to 8.0 percent and net sales to grow 3.5 percent to 4.5 percent from last year at constant currency.

In fiscal 2026, adjusted operating income was $31.0 billion and net sales were $706.4 billion.

In the first quarter, consolidated net income attributable to Walmart came in at $5.33 billion, a growth of 18.8 percent from $4.49 billion last year. Earnings per share climbed 19.6 percent to $0.67 from prior year's $0.56.

Adjusted earnings were $0.66 per share for the period.

Operating income grew 5 percent year-over-year to $7.49 billion, and adjusted operating income grew 5.1 percent at constant currency.

Walmart U.S. adjusted operating income of $6.0 billion climbed 5.7 percent. The result was negatively affected by 250 bps from higher fuel costs in distribution and fulfillment.

The company's total revenues for the period rose 7.3 percent to $177.75 billion from $165.61 billion last year. Revenues grew 5.9 percent in constant currency.

Net sales increased 7.1 percent from last year to $175.68 billion, and Membership and other income climbed 27 percent to $2.07 billion.

Walmart U.S. net sales grew 4.5 percent year-over-year to $117.2 billion, with comp sales excluding fuel increasing 4.1 percent, compared to last year's growth of 4.5 percent.

Walmart International net sales climbed 18 percent from last year to $35.1 billion, and net sales in Sam's Club U.S. increased 6.1 percent to $23.4 billion, led by grocery and general merchandise. Sam's Club U.S. Comp sales excluding fuel grew 3.9 percent, compared to prior year's growth of 6.7 percent, driven by increased transactions and unit volumes.

In the quarter, global eCommerce sales grew 26 percent, led by store-fulfilled pickup & delivery and marketplace. Global advertising business sales went up 37 percent, with strength across segments. Walmart U.S. advertising grew 36 percent.

Membership fee revenue grew 17.4 percent globally.

In pre-market activity on Nasdaq, Walmart shares were losing around 2.9 percent, trading at $$127.99, after closing Wednesday's regular trading 2.5 percent lower.

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