Overview
- Walmart reported a solid first quarter on May 21, with revenue up about 7.3% to $177.8 billion, e‑commerce up roughly 25–26%, and adjusted EPS near $0.66.
- CFO John David Rainey said the retailer absorbed roughly $175 million of higher‑than‑planned fuel costs in Q1, a drag equal to about 250 basis points of operating income growth.
- Management kept full‑year guidance but gave cautious fiscal Q2 EPS guidance of $0.72 to $0.74, signaling more near‑term caution despite the quarterly strength.
- Markets reacted negatively after the earnings and guidance, sending the stock down about 7% and prompting mixed analyst moves, including Morgan Stanley’s reiteration of Overweight with a $140 target and UBS trimming its target to $141.
- The company’s faster‑growing, higher‑margin digital businesses—advertising, marketplace and membership—are expanding rapidly and may offset cost pressure over time but rising fuel and food inflation could still push retail prices higher and test lower‑income shoppers’ budgets.