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Walmart (NYSE:WMT) posted adjusted EPS of $0.61 in Q1 FY26, topping the $0.58 consensus, even as revenue of $165.6 billion slightly missed forecasts of $166.0 billion.
Operating income climbed 4.3% year-over-year, driven by a 4.5% rise in U.S. same-store sales led by strength in health, wellness and grocery categories.
The standout was e-commerce, where Walmart achieved its first profitable quarter across domestic and international operations. Online sales surged 21% in the U.S. and 22% globally, marking the 12th consecutive quarter of double-digit growth on the back of higher-margin digital advertising and third-party marketplace gains.
CFO John David Rainey warned that even after a temporary tariff cut on Chinese imports to 30% for 90 days, costs remain too high and consumers could start seeing price hikes later this month, with clearer impacts in June. Walmart has held back Q2 EPS and operating-income guidance amid tariff uncertainty but expects Q2 net-sales growth of 3.5%4.5% and reaffirmed full-year sales growth targets of 3%4%.
Why it matters: A profitable e-commerce quarter underscores Walmart's ability to monetize online growth and offset brick-and-mortar pressures, while tariff headwinds could test margins in the months ahead.
This article first appeared on GuruFocus.