Walmart (WMT) Q1 2026 earnings summary

Executive summary

• Total revenues for Q1 FY26 were $165.6B, up 2.5% year-over-year (4.0% in constant currency), driven by strong U.S. comparable sales and 22% global eCommerce growth; eCommerce reached profitability for the first time globally and in the U.S.

• Operating income increased 4.3% to $7.1B (3.0% in constant currency), with margin improvement in Walmart U.S. and Sam's Club U.S.

• Adjusted EPS was $0.61, up 1.7% year-over-year, excluding a $0.05 net loss on equity and other investments; GAAP EPS was $0.56.

• Membership and advertising businesses delivered high-margin growth, with advertising up 50% and membership income up 14.8%.

• Free cash flow improved by $0.9B to $0.4B; $4.6B in share repurchases and $4B in new long-term debt at favorable rates.

Financial highlights

• Gross profit rate increased 12 bps to 24.2%, led by improvements in Walmart U.S. and disciplined inventory management.

• Adjusted operating income (constant currency) was $7.3B, up 3.0% year-over-year.

• Walmart U.S. net sales grew 3.2% to $112.2B; comp sales up 4.5% driven by transactions and eCommerce growth.

• Walmart International net sales were $29.8B (flat year-over-year), with 7.8% growth in constant currency; eCommerce up 20%.

• Sam's Club U.S. net sales increased 2.9% to $22.1B; comp sales up 6.7%; eCommerce up 27%; operating income up 11.5%.

Outlook and guidance

• FY26 guidance unchanged: net sales growth of 3.0% to 4.0%, adjusted operating income up 3.5% to 5.5%, adjusted EPS $2.50–$2.60, including a 20 bps tailwind from the VIZIO acquisition.

• Q2 FY26 net sales expected to increase 3.5% to 4.5% in constant currency; no specific Q2 operating income or EPS guidance due to market uncertainty.

• Capital expenditures expected at 3.0% to 3.5% of net sales.

• Tariff and trade policy outcomes, currency fluctuations, and macroeconomic volatility could cause significant quarterly swings, but annual targets remain achievable.