On Thursday, retail giant Walmart Inc. ( WMT ) reported first-quarter FY26 sales growth of 2.5% year-on-year (Y/Y) to $165.60 billion, marginally missing the analyst consensus estimate of $165.88 billion.

The retailer reported adjusted EPS of 61 cents, beating the consensus estimate of 58 cents.

Global eCommerce sales grew 22% Y/Y, led by store-fulfilled pickup & delivery and marketplace.

Comparable sales for Walmart U.S. climbed by 4.5%, excluding fuel, driven by health & wellness and grocery growth. At Sam's Club, same-store sales rose 6.7% Y/Y, excluding fuel.

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The gross margin rate was up 12 basis points, led by Walmart U.S.

Operating income increased $0.3 billion, or 4.3%, and adjusted operating income was up 3.0% in constant currencies due to higher gross margins and growth in membership income.

Global advertising business improved 50% Y/Y, including 31% Y/Y for Walmart Connect in the U.S.

"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." said President and CEO Doug McMillon.

Walmart ( WMT ) generated an operating cash flow of $5.4 billion and a free cash flow of $425 million in the quarter. It ended the quarter with cash and equivalents of $9.3 billion.

Guidance

Walmart ( WMT ) expects second-quarter FY26 sales growth of 3.5%—4.5% in CC, translating to $173.67 billion—$175.35 billion versus the $175.21 billion estimate.

For fiscal year 2026, Walmart ( WMT ) reaffirmed an adjusted EPS outlook of $2.50 – $2.60, vs. the $2.61 estimate and sales guidance of $694.70 billion—$701.50 billion vs. the street view of $705.30 billion.

Conference Call

During the conference call, CEO reportedly says, "all of the tariffs create cost pressure for us, but the larger tariffs on china have the biggest impact for us; ‘we won't let tariff-related cost pressure on some general merchandise items put pressure on food prices; but as it relates to food area for imported items like bananas, avocados, coffee and roses, will do our best to control."

The CFO reportedly said, "February was softer than expected, March was back to normal, and April was very strong; we will need to manage quantity volumes as we measure tariffs."

Investors can gain exposure to the stock via Walmart Inc. ( WMT ) and Vanguard Consumer Staples ETF .

Price Action: WMT shares are down 0.71% to $96.14 premarket at the last check on Thursday.

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