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US retail giant Walmart has disclosed total revenue of $165.61bn in the first quarter (Q1) of fiscal 2026 (FY26) - a 2.5% increase from the previous year's $161.51bn during the same period.
The company also saw a 2.5% rise in net sales, while its global e-commerce sales rose 22%, predominantly driven by store-fulfilled pickup and delivery services as well as marketplace operations.
Revenue from memberships and other sources rose 3.7%, which includes a 14.8% climb in membership income.
However, net income fell 12.1%, settling at $4.49bn in Q1 FY26, compared to the $5.10bn reported in the same quarter of the previous year.
The company’s earnings per share on a diluted basis also saw a reduction, falling 11.1% to $0.56 in comparison to $0.63 reported in the same quarter of the previous fiscal year.
An improvement was observed in Walmart's gross margin rate, which increased 12 basis points to reach 24.2%, primarily due to performance improvements in Walmart US - up from 24.1% recorded in the first quarter of fiscal year 2025.
Operating income for the quarter demonstrated growth of 4.3%, reaching $7.14bn attributed to elevated gross margins and an uptick in membership income. This growth was further bolstered by enhanced economics within the e-commerce sector, despite facing a 250-basis-point headwind from the leap day comparison.
Walmart successfully raised $4bn through long-term debt instruments, securing favourable rates for general corporate purposes.
Walmart president and CEO Doug McMillon stated: “We delivered a solid first quarter in a dynamic operating environment. We’re serving customers and members in more ways, which is fuelling our growth. We’re well-positioned, maintaining flexibility to navigate the near-term while continuing to invest to create value for the long-term.”
Walmart projects net sales for the second quarter to grow between 3.5% and 4.5% when adjusted for constant currency fluctuations.
The company's guidance for the fiscal year 2026 remains consistent with previous forecasts, anticipating a net sales increase between 3% and 4%, and an adjusted operating income growth ranging from 3.5% to 5.5%.
The guidance could still be impacted by currency exchange rate volatility, global economic shifts, geopolitical dynamics, trade policies, consumer behaviour and inflation.
Walmart executive vice-president and chief financial officer John David Rainey stated: "Given the dynamic nature of the backdrop, and the range of near-term outcomes being exceedingly wide and difficult to predict, we felt it best to hold from providing a specific range of guidance for operating income growth and EPS [earnings per share] for the second quarter. With a longer view into the full year, we believe we can navigate well and achieve our full year guidance."