Walmart (NASDAQ:WMT) Announces Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Walmart beat quarterly expectations, reporting $0.66 EPS versus the $0.65 estimate and revenue of $177.75 billion, above forecasts. Revenue rose 7.4% year over year, showing continued strength in the core business.
• Growth was broad-based across key businesses, with constant-currency sales up nearly 6%, e-commerce up 26%, and traffic and transaction growth accelerating at both Walmart U.S. and Sam’s Club. Higher-margin segments like advertising, membership fees, and marketplace sales also posted strong gains.
• Management’s outlook was cautious, as Walmart updated full-year and Q2 guidance but warned that elevated fuel costs and consumer pressure could weigh on results. Fuel alone reduced Q1 operating income by about $175 million.

Walmart (NASDAQ:WMT - Get Free Report) posted its quarterly earnings results on Thursday. The retailer reported $0.66 EPS for the quarter, beating the consensus estimate of $0.65 by $0.01, FiscalAI reports. The firm had revenue of $177.75 billion for the quarter, compared to analyst estimates of $174.84 billion. Walmart had a net margin of 3.07% and a return on equity of 21.44%. Walmart's revenue for the quarter was up 7.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.61 earnings per share. Walmart updated its FY 2027 guidance to 2.750-2.850 EPS and its Q2 2027 guidance to 0.720-0.740 EPS.

Here are the key takeaways from Walmart's conference call:

• Walmart beat Q1 expectations, with constant-currency sales up nearly 6% and e-commerce growing 26%, while management reiterated full-year guidance and said sales growth is tracking toward the upper end of the range.
• Traffic and transaction growth accelerated in both Walmart U.S. and Sam’s Club, supported by everyday low prices, roughly 7,200 rollbacks, and strong general merchandise performance, especially fashion and beauty.
• Higher-margin businesses are scaling quickly: advertising grew more than 30% enterprise-wide, membership fee revenue rose 17%, and marketplace sales in the U.S. grew nearly 50%, helping improve the company’s profit mix.
• Delivery speed and AI capabilities continue to expand, with more than 60% of U.S. households now reachable in 30 minutes or less and Sparky usage surging, which management says is boosting order values and customer engagement.
• Fuel costs remain a meaningful headwind, reducing Q1 operating income by about $175 million, and management warned that if elevated fuel prices persist, retail price inflation could rise in the second quarter and second half.

Walmart Stock Performance

Shares of NASDAQ WMT opened at $124.83 on Thursday. The stock's fifty day simple moving average is $126.91 and its 200 day simple moving average is $119.89. The stock has a market capitalization of $994.98 billion, a price-to-earnings ratio of 45.28, a PEG ratio of 4.96 and a beta of 0.65. The company has a quick ratio of 0.24, a current ratio of 0.79 and a debt-to-equity ratio of 0.38. Walmart has a 52-week low of $93.43 and a 52-week high of $135.15.

Walmart News Roundup

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart posted first-quarter revenue of about $177.8 billion, above estimates, while EPS of $0.66 matched expectations, showing the core business remains resilient. Walmart press release
• Positive Sentiment: Growth in e-commerce, advertising, and membership fees suggests Walmart’s higher-margin businesses are continuing to scale and support longer-term earnings power. Walmart revenue growth article
• Positive Sentiment: Analysts had already been raising price targets ahead of earnings, reflecting optimism about Walmart’s scale, omnichannel strength, and defensive appeal in a softer consumer environment.
• Neutral Sentiment: Same-store and sales trends were generally healthy, with grocery and online demand helping offset more cautious discretionary spending by shoppers.
• Negative Sentiment: Walmart’s second-quarter guidance came in below Wall Street expectations, and its full-year EPS and revenue outlook also missed consensus, which is the main reason the stock is falling. Walmart falls on guidance despite beating revenue estimates
• Negative Sentiment: Management’s cautious outlook appears tied to high gas prices and pressure on U.S. consumers, raising concerns that spending could weaken in the coming quarters.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. DA Davidson set a $150.00 price target on shares of Walmart and gave the company a "buy" rating in a report on Friday, February 20th. Rothschild & Co Redburn set a $150.00 price target on Walmart in a report on Tuesday, February 17th. Citigroup reaffirmed a "buy" rating and set a $147.00 price target (up from $120.00) on shares of Walmart in a research note on Thursday, February 5th. Craig Hallum set a $150.00 price objective on Walmart in a report on Friday, March 6th. Finally, Truist Financial lifted their target price on Walmart from $127.00 to $139.00 and gave the stock a "buy" rating in a report on Friday, February 20th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $138.88.

Insider Buying and Selling at Walmart

In other Walmart news, EVP John D. Rainey sold 20,000 shares of the company's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $127.79, for a total transaction of $2,555,800.00. Following the completion of the sale, the executive vice president directly owned 486,764 shares of the company's stock, valued at approximately $62,203,571.56. This represents a 3.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Daniel J. Bartlett sold 1,250 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $133.77, for a total transaction of $167,212.50. Following the completion of the transaction, the executive vice president owned 635,593 shares of the company's stock, valued at approximately $85,023,275.61. The trade was a 0.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 154,065 shares of company stock valued at $19,281,401 over the last 90 days. 0.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Walmart

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Walmart by 55.8% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 25,241 shares of the retailer's stock worth $2,813,000 after buying an additional 9,041 shares during the last quarter. Birchwood Financial Partners Inc. acquired a new position in shares of Walmart in the 4th quarter valued at $50,000. Alpine Woods Capital Investors LLC acquired a new position in shares of Walmart in the 4th quarter valued at $269,000. Strive Financial Group LLC bought a new position in shares of Walmart in the 4th quarter worth $2,522,000. Finally, Ameriflex Group Inc. grew its stake in shares of Walmart by 38.3% during the fourth quarter. Ameriflex Group Inc. now owns 7,834 shares of the retailer's stock worth $873,000 after purchasing an additional 2,168 shares during the period. 26.76% of the stock is currently owned by hedge funds and other institutional investors.

About Walmart

Walmart is a multinational retail corporation that operates a broad portfolio of store formats and digital services. Its core business includes large-format supercenters, discount department stores, neighborhood grocery stores and a membership warehouse chain, Sam’s Club. The company’s merchandising mix covers groceries, household goods, apparel, electronics and pharmacy services, supplemented by private-label products and category-specific offerings. Walmart pairs its physical store network with online platforms and mobile applications to provide omnichannel shopping, fulfillment and delivery options for consumers and businesses.

The company was founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962; it is headquartered in Bentonville, Arkansas.

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