Walmart (WMT) Q1 2027 earnings summary

Executive summary

• Revenue grew 7.3% year-over-year to $177.8 billion, driven by strong eCommerce growth of 26% and robust performance across all segments, with continued market share gains and resilient consumer demand.

• Adjusted operating income increased 5.1% in constant currency to $7.5 billion, and GAAP EPS was $0.67, with adjusted EPS at $0.66, up 8.2% year-over-year, excluding gains on investments and reorganization charges.

• Membership fee revenue rose 17.4% globally, and global advertising business grew 37%, with higher-margin businesses becoming more significant contributors to profitability.

• Investments in technology, automation, and AI (notably Sparky) are enhancing customer experience, fulfillment speed, and operational efficiency.

• Consumer demand remains resilient, though lower-income shoppers are pressured by higher fuel prices; value and convenience are driving increased traffic and engagement.

Financial highlights

• Net sales reached $175.7 billion, up 7.1% year-over-year, with constant currency sales up nearly 6% and eCommerce sales up 26% globally.

• Adjusted operating income grew ~5% in constant currency, despite a $175M headwind from higher fuel costs.

• Gross profit rate improved by 6 basis points to 24.3%, led by favorable merchandise and business mix, partially offset by higher fuel costs.

• Operating cash flow was $4.7 billion, down $0.7 billion year-over-year; free cash flow was negative $1.9 billion, reflecting higher capital expenditures.

• Share repurchases totaled $2.1 billion for the quarter, with $28.2 billion remaining authorized.

Outlook and guidance

• Q2 FY27 guidance: Net sales expected to increase 4–5%, operating income up 7–10%, and adjusted EPS of $0.72–$0.74.

• FY27 guidance: Net sales growth of 3.5–4.5%, adjusted operating income up 6–8%, adjusted EPS of $2.75–$2.85, and capital expenditures at ~3.5% of net sales.

• Guidance excludes potential IEEPA tariff refunds; FX expected to provide a modest tailwind.

• Management expects continued uncertainty due to tariffs, inflation, currency fluctuations, and supply chain pressures.

• Sources of liquidity are expected to be sufficient to fund operations, investments, dividends, and share repurchases for at least the next 12 months.