Walmart Inc (NYSE:WMT, XETRA:WMT) shares fell nearly 7% after the grocery chain reported its first quarter earnings, as investors weighed solid revenue growth against softer-than-expected forward guidance.
For the quarter, Walmart reported revenue of $177.75 billion, compared with analyst expectations of $174.95 billion, representing a 7.3% increase from a year earlier.
Adjusted earnings per share came in at $0.66, matching consensus estimates.
Growth was supported by continued strength in key higher-margin and omnichannel segments. Global e-commerce sales rose 26% year over year, while global advertising revenue increased 37%.
Walmart US comparable sales advanced 4.1%, driven largely by a 3% increase in customer transactions. Membership fee revenue also climbed 17.4% globally.
Despite the top-line strength, investor focus shifted to guidance that came in below Wall Street expectations. For the second quarter, Walmart projected adjusted earnings per share in the range of $0.72 to $0.74, with a midpoint of $$0.73, compared with analyst expectations of $0.75.
The company also guided to revenue of $185.4 billion for the quarter, below the $186.4 billion expected by analysts.
For the full fiscal year 2027, Walmart reiterated adjusted earnings per share guidance of $2.75 to $2.85, with a midpoint of $2.80, versus consensus expectations of $2.92.
“Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment, and faster delivery,” Walmart CEO John Furner said in a statement.
“Our teams are adopting innovative technologies, driving productivity through automation, and growing higher-margin commerce solutions.”
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