Walmart Q1 Earnings Beat Estimates, E-Commerce Growth Supports Sales

Core Insights - Walmart Inc. reported first-quarter fiscal 2026 results with revenues and earnings growing year over year, surpassing Zacks Consensus Estimate [1][4] - The company is focusing on operational efficiency while enhancing customer experiences through e-commerce and new ventures [1][5] Financial Performance - Adjusted earnings per share (EPS) increased by 1.7% to 61 cents, beating the consensus estimate of 57 cents [3] - Total revenues rose 2.5% year over year to $165.61 billion, with a constant-currency growth of 4% [4] - Operating income increased by 4.3% year over year to $7.1 billion, supported by sales growth and higher membership income [8] E-commerce and New Ventures - Global e-commerce sales surged 22%, driven by store-fulfilled pickup and delivery services [5] - Membership income increased by 14.8%, while the global advertising business advanced by 50% [5] Segment Performance - Walmart U.S. net sales grew 3.2% to $112.2 billion, with e-commerce sales rising 21% [9] - Walmart International segment's net sales decreased by 0.3% to $29.8 billion, but increased by 7.8% on a constant-currency basis [11] - Sam's Club U.S. net sales increased by 5.5% to $19.7 billion, with e-commerce sales jumping 27% [14][15] Operational Metrics - Consolidated gross profit margin expanded by 12 basis points to 24.2% [6] - Operating expenses deleveraged by 6 basis points due to increased costs in various areas [7] Future Guidance - For the second quarter of fiscal 2026, Walmart expects consolidated net sales growth of 3.5-4.5% [19] - Full-year guidance includes expected consolidated net sales growth of 3-4% and adjusted EPS in the range of $2.50-$2.60 [20] Stock and Cash Position - As of the end of the quarter, Walmart had cash and cash equivalents of $9.3 billion and total debt of $52.9 billion [16] - Share repurchases amounted to $4.6 billion, with a remaining authorization of $7.5 billion [17]