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Apr 30
Walmart Q1 2026 Earnings Report
Walmart posted modest revenue growth and solid operating income in Q1 FY26.
Key Takeaways
Walmart reported $165.6 billion in revenue and $0.56 GAAP EPS for Q1 FY26, driven by strong eCommerce and advertising performance despite headwinds from leap day comparisons.
Revenue reached $165.6 billion, up 2.5% YoY.
Adjusted EPS came in at $0.61, above GAAP EPS of $0.56.
eCommerce sales surged 22% globally, fueled by pickup & delivery and marketplace strength.
Advertising revenue increased 50% globally, with Walmart Connect U.S. up 31%.
Walmart
Walmart
Walmart Revenue by Segment
Walmart Revenue by Geographic Location
Forward Guidance
Walmart reiterated FY26 guidance, projecting continued growth driven by digital, membership, and operating efficiency gains.
Positive Outlook
- Net sales expected to grow 3.0% to 4.0% in FY26 (cc).
- Adj. operating income projected to grow 3.5% to 5.5%.
- Adj. EPS guided to $2.50 to $2.60 including $0.05 FX headwind.
- Positive impact expected from VIZIO acquisition (~20 bps tailwind).
- eCommerce and advertising growth expected to remain strong.
Challenges Ahead
- Leap year lapping adds ~20–70 bps headwinds to sales and income growth.
- Currency fluctuations reduce reported sales by ~$2.4B.
- No specific Q2 guidance on EPS or operating income.
- Expense deleverage due to strategic investments in wages and tech.
- Operating income margin pressured in Walmart International.
Revenue & Expenses
Visualization of income flow from segment revenue to net income