🔹 Revenue: $165.6B; UP +2.5% YoY (Est. $166B) 😐
🔹 Adj EPS: $0.61 (Est. $0.58) 🟢
🔹 CFO says price hikes from tariffs could start later this month
🔸 No specific EPS or operating income guidance provided due to macro uncertainty
FY26 Guidance (Unchanged):
🔹 Net Sales Growth (cc): +3.0% to +4.0%
🔹 Adj. Operating Income Growth (cc): +3.5% to +5.5%
🔹 Adjusted EPS: $2.50 to $2.60
🔹 Effective Tax Rate: ~23.5% to 24.5%
🔹 Capital Expenditures: ~3.0% to 3.5% of net sales
Q2 FY26 Guidance:
🔹 Net Sales Growth (cc): +3.5% to +4.5%
🔸 Includes ~20 bps benefit from VIZIO acquisition
🔸 No specific EPS or operating income guidance provided due to macro uncertainty
Other Key Q1 Metrics:
🔹 Operating Income: $6.3B; UP +4.3% YoY (Adj. UP +3.0% cc)
🔹 Gross Margin Rate: UP +12 bps YoY
🔹 Operating Cash Flow: $5.4B; UP +$1.2B YoY
🔹 Free Cash Flow: $0.4B; UP +$0.9B YoY
🔹 Return on Assets (ROA): 7.5%
🔹 Return on Investment (ROI): 15.3%; UP +30 bps YoY
🔹 Share Repurchases: $4.6B (50.4M shares)
🔹 Cash & Cash Equivalents: $9.3B
🔹 Total Debt: $52.9B
🔹 Inventory: $57.5B; UP +3.8% YoY
Segment Performance:
Walmart U.S.:
🔹 Net Sales: $112.2B; UP +3.2% YoY
🔹 Comp Sales (ex-fuel): UP +4.5%
🔹 eCommerce Sales: UP +21% YoY
🔹 Operating Income: $5.7B; UP +7.0% YoY
🔹 Adjusted Operating Income: $5.7B; UP +4.4% YoY
🔸 Strongest growth in health & wellness and grocery
🔸 31% YoY growth in Walmart Connect (advertising)
🔸 Gross Profit Rate: UP +25 bps
🔸 Operating expense deleverage of 8 bps
🔸 eCommerce momentum led by store pickup/delivery and marketplace
Walmart International:
🔹 Net Sales (cc): $32.1B; UP +7.8% YoY
🔹 Reported Net Sales: $29.8B (flat YoY; currency headwind of $2.4B)
🔹 Operating Income (cc): $1.4B; DOWN -6.4% YoY
🔹 Reported Operating Income: $1.3B; DOWN -17.5% YoY
🔸 Growth led by China, Flipkart, Walmex
🔸 eCommerce Sales: UP +20% YoY
🔸 Advertising growth led by Flipkart
🔸 Strategic investments impacted margins
Sam’s Club U.S.:
🔹 Net Sales (ex-fuel): $19.7B; UP +5.5% YoY
🔹 Comp Sales (ex-fuel): UP +6.7%
🔹 eCommerce Sales: UP +27% YoY (delivery UP ~160%)
🔹 Operating Income: $0.7B; UP +11.5% YoY
🔸 Growth driven by grocery, health & wellness, and general merchandise
🔸 Membership Income: UP +9.6% YoY
🔸 Growth in member counts, renewals, and Plus membership
Advertising Business:
🔹 Global Advertising Revenue: UP +50% YoY
🔸 U.S. Walmart Connect: UP +31% YoY
🔸 Flipkart-led growth in International advertising
CEO Doug McMillon's Commentary:
🔸 "We delivered a solid first quarter in a dynamic operating environment. We’re serving customers and members in more ways, which is fueling our growth. We’re well positioned, maintaining flexibility to navigate the near-term while continuing to invest to create value for the long-term."
CFO John David Rainey's Commentary:
🔸 "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 for the second quarter."
