Walmart’s first quarter reflected robust top-line momentum, with management crediting success to strong eCommerce growth, higher transaction volumes, and gains in general merchandise categories. CEO John Furner highlighted that U.S. transaction growth was the highest in six quarters, driven by expanded rollbacks and competitive pricing. Despite these positives, management acknowledged signs of consumer pressure, with CFO John David Rainey pointing to higher fuel costs impacting both customer behavior and Walmart’s distribution expenses. The quarter’s mixed signals on profitability and consumer sentiment contributed to a negative market reaction.
Is now the time to buy WMT? Find out in our full research report (it’s free for active Edge members).
Walmart (WMT) Q1 CY2026 Highlights:
- Revenue: $177.8 billion vs analyst estimates of $174.9 billion (7.3% year-on-year growth, 1.6% beat)
- Adjusted EPS: $0.66 vs analyst estimates of $0.66 (in line)
- Adjusted EBITDA: $11.5 billion vs analyst estimates of $11.38 billion (6.5% margin, 1% beat)
- Revenue Guidance for Q2 CY2026 is $185.4 billion at the midpoint, below analyst estimates of $186.4 billion
- Management reiterated its full-year Adjusted EPS guidance of $2.80 at the midpoint
- Operating Margin: 4.2%, in line with the same quarter last year
- Locations: 10,974 at quarter end, up from 10,784 in the same quarter last year
- Same-Store Sales rose 4.2% year on year, in line with the same quarter last year
- Market Capitalization: $944.9 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Walmart’s Q1 Earnings Call
- Simeon Gutman (Morgan Stanley) asked about incremental margin drivers beyond fuel costs. CEO John Furner highlighted business mix improvements, especially from eCommerce, advertising, and membership, while CFO John David Rainey pointed to speed and delivery as key engagement levers.
- Gregory Melich (Evercore ISI) questioned how Walmart plans to sustain recent traffic gains. Furner pointed to strong merchandising, especially in fashion and beauty, and emphasized the role of improved digital experiences and rapid delivery.
- Katharine McShane (Goldman Sachs) inquired about the timing of margin contributions from new platform rollouts in Canada and Mexico. Furner and International CEO Chris Nicholas noted early signs of growth, with eCommerce penetration and ad revenues accelerating, but cautioned that these are still small contributors relative to the U.S.
- Michael Lasser (UBS) asked if recurring external shocks make double-digit operating income growth less attainable. Rainey maintained confidence in the multiyear plan but admitted that tariffs and fuel costs have created short-term challenges, reiterating focus on higher-margin revenue streams.
- Chris Nardone (Bank of America) asked about the sustainability of general merchandise gains and the impact of Marketplace expansion. Rainey cited new brands and assortment as tailwinds, while Chief Growth Officer Seth Dallaire described Marketplace as an early but fast-growing driver across categories.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be closely monitoring (1) progress in scaling advertising, membership, and marketplace contributions to overall margin, (2) the resilience of consumer spending, especially among lower-income households, and (3) the pace of international platform adoption in Canada and Mexico. We will also track how Walmart manages cost inflation and the rollout of new AI-powered customer experiences.
Walmart currently trades at $118.80, down from $130.85 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
