Walmart Inc. Reports Strong First Quarter Earnings for Fiscal Year 2026

Walmart's revenue growth was impacted by a 100 basis point headwind due to lapping leap day from the previous fiscal year. Nonetheless, the company demonstrated resilience with a 4.3% increase in operating income, amounting to an additional $0.3 billion. When adjusted for constant currency, operating income growth stood at 3.0%. This positive trend was attributed to higher gross margins and enhanced membership income, alongside the improved economics of the eCommerce sector.

One of the standout features of Walmart's first quarter results was the remarkable growth in global eCommerce sales, which soared by 22%. This growth was largely driven by store-fulfilled pickup and delivery services, as well as the expanding marketplace offerings. Additionally, the global advertising business experienced a robust 50% increase, with Walmart Connect in the U.S. growing by 31%. Such growth in digital channels emphasizes Walmart's commitment to integrating technology into its retail strategy.

Walmart reported a 3.7% rise in membership and other income, with membership income alone growing by an impressive 14.8%. This indicates a strong customer retention strategy and highlights the value Walmart is providing through its membership offerings.

The company achieved a gross margin rate increase of 12 basis points, primarily driven by operations in Walmart U.S. Adjusted earnings per share (EPS) stood at $0.61, which excludes the impact of a net loss on equity and other investments amounting to $0.05 per share.

Walmart's return on assets (ROA) reached 7.5%, while the return on investment (ROI) was reported at 15.3%, marking an increase of 30 basis points. These metrics reflect the company’s efficient use of its resources and capital, ensuring sustainable growth and profitability.

In a move to bolster its financial position, Walmart successfully raised $4 billion in long-term debt for general corporate purposes at favorable rates. This strategic decision signifies Walmart’s proactive approach to managing its capital structure, potentially allowing for further investments in technology, store improvements, and eCommerce capabilities.

Walmart will hold a live conference call with the investment community on May 15, 2025, at 7 a.m. CST to discuss the earnings results in greater detail. The event will be webcast live and is accessible on the company’s corporate website, where it will also be archived for future reference.

Walmart's first quarter results underscore its strong market position and the effectiveness of its omnichannel strategy. With continued growth in eCommerce and advertising, alongside a strategic financial approach, Walmart is well-positioned to navigate the evolving retail landscape and enhance shareholder value in the coming quarters. As the company continues to innovate and adapt, it remains a formidable player in the global retail market.