Walmart Q1 2026 Earnings Beat Estimates Despite Stock Dip
Walmart reported Q1 2026 results exceeding analyst estimates, with revenue of $169.6 billion and EPS of $1.65. Despite the beat, the stock dropped 8.5%. The company raised its full-year guidance.
Key Numbers
Walmart Inc. (NASDAQ:WMT) reported its first-quarter results for fiscal 2026, beating analyst expectations. Revenue reached $169.6 billion, up 4.8% year-over-year, while earnings per share came in at $1.65 versus the $1.52 consensus. Despite the strong performance, Walmart shares fell 8.5% in after-hours trading.
Key Financial Results
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $169.6B | $161.9B | +4.8% |
| Operating Income | $7.1B | $6.5B | +9.2% |
| EPS | $1.65 | $1.53 | +7.8% |
| US Comparable Sales | 3.8% | 3.7% | +0.1% |
| E-commerce Growth | 21% | 18% | +3% |
Highlights from the Release
- E-commerce: Sales surged 21%, driven by delivery and curbside pickup.
- Grocery: Market share gains continued with transaction growth.
- Advertising: Walmart Connect grew over 30%.
- Memberships: Walmart+ subscribers increased 15%.
Guidance
Walmart raised its full-year fiscal 2026 guidance:
- Revenue growth: 4% to 4.5%.
- Operating income growth: 6% to 8%.
- EPS: $6.70 to $7.00.
Stock Impact
The stock dropped 8.5% post-announcement, possibly due to high market expectations or concerns about consumer spending. However, the underlying performance remains strong.
What This Means for Investors
Walmart's results demonstrate resilience in an inflationary environment, with solid revenue and profit growth. The raised guidance indicates management confidence. Investors may view the dip as a buying opportunity, but should monitor economic headwinds.
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