Core Insights - Walmart Inc. reported first-quarter FY26 sales growth of 2.5% year-on-year to $165.60 billion, slightly missing analyst consensus of $165.88 billion, while adjusted EPS was 61 cents, exceeding the consensus estimate of 58 cents [1][3] - CEO Doug McMillon highlighted the company's solid performance in a dynamic environment, emphasizing customer service and long-term value creation [2] - For fiscal year 2026, Walmart reaffirmed an adjusted EPS outlook of $2.50 – $2.60 and sales guidance of $694.70 billion – $701.50 billion, below the street view of $705.30 billion [3] Analyst Ratings and Price Targets - Baird analyst Peter Benedict maintained an Outperform rating and raised the price target from $100 to $110 [8] - Truist Securities analyst Scot Ciccarelli maintained a Buy rating and increased the price target from $107 to $111 [8] - RBC Capital analyst Steven Shemesh reiterated an Outperform rating with a $102 price target, while Telsey Advisory Group's Joseph Feldman maintained an Outperform rating with a $115 price target [8] - DA Davidson analyst Michael Baker maintained a Buy rating with a $117 price target [8]

Core Viewpoint - Walmart Inc reported mixed first-quarter results, yet its shares rose in early trading, indicating investor optimism amid a dynamic earnings season [1] Group 1: Financial Performance - Walmart's adjusted earnings were 61 cents per share, exceeding consensus estimates by 5% [8] - The company achieved US same-store sales growth of 4.5%, driven by a 1.6% increase in traffic and a 2.8% rise in average ticket size [6] - Global advertising revenue grew by 50% year-on-year during the quarter [2] Group 2: Analyst Ratings and Price Targets - BofA Securities maintained a Buy rating with a price target of $120 [2] - RBC Capital Markets assigned an Outperform rating with a price target of $102 [4] - Goldman Sachs reiterated a Buy rating with a price target of $101 [6] - JPMorgan kept an Overweight rating with a price target of $112 [8] Group 3: Guidance and Future Outlook - Management reiterated fiscal 2026 guidance, projecting net sales growth of 3.5%-4.5% [3] - The fiscal second-quarter guidance suggests a slowdown from the previous quarter's growth of 4.85% [5] - Analysts believe Walmart is well-positioned to mitigate tariff impacts and continue solid earnings growth in 2025 [7][9]

Core Insights - Walmart reported better-than-expected first-quarter fiscal 2026 results, with earnings per share at 61 cents, surpassing the Zacks Consensus Estimate of 57 cents, and a revenue increase of 2.5% year over year to $165.6 billion, exceeding the consensus mark of $165.59 billion [1][3] - The company maintained its full-year outlook but warned of potential tariff-related price hikes later this month [1] - U.S. comparable sales rose 4.6% year over year, and e-commerce sales increased by 22% globally, driven by in-store pickup, delivery, and its advertising platform [3] Revenue Guidance - Walmart issued revenue guidance for the second quarter of fiscal 2026, expecting revenue growth of 3.5%-4.5% [4] - For the full fiscal year 2026, Walmart anticipates revenue growth of 3%-4% to $674.5 billion and earnings per share in the range of $2.50-$2.60 [4] ETF Exposure - Several ETFs have significant allocations to Walmart, including: - Fidelity MSCI Consumer Staples Index ETF (FSTA) with a 12.1% allocation and $1.3 billion in assets [2][4] - Vanguard Consumer Staples ETF (VDC) with a 12.3% allocation and $7.4 billion in assets [5] - Consumer Staples Select Sector SPDR Fund (XLP) with a 9.9% allocation and $15.5 billion in assets [6] - VanEck Vectors Retail ETF (RTH) with a 9.4% allocation and $244.3 million in assets [7] - iShares U.S. Consumer Focused ETF (IEDI) with an 8.6% allocation and $35 million in assets [9]

Core Insights - Walmart is nearing the ability to deliver to 95% of the US population within three hours, which is faster than Amazon, although Walmart's product selection for this service is smaller [1] - The company has seen a significant increase in three-hour deliveries, nearly doubling the volume compared to the previous year, contributing to its e-commerce business achieving a quarterly profit for the first time [2] - Walmart's extensive network of over 4,600 stores and investments in fulfillment centers and automated supply chains are key advantages in managing delivery operations [3] Delivery Operations - The concept of "densification" allows Walmart to spread delivery costs over a larger volume of packages, enhancing profitability [2] - Customers are increasingly willing to pay for expedited delivery services, with Walmart+ offering fast grocery delivery and other customers paying fees for quick delivery options [2] - Walmart has developed a suite of apps to streamline the ordering and delivery process for customers, workers, and delivery drivers [4] Revenue Streams - The company is diversifying its revenue by selling warehousing and delivery services to other businesses, alongside a growing advertising sales business [4] - These additional revenue streams support Walmart's ability to maintain fast delivery speeds while keeping costs low [4] - The efficiency of Walmart's delivery operations was demonstrated during peak times like Easter and Mother's Day, showcasing the importance of convenience in retail [5]

Core Viewpoint - Walmart Inc. reported stronger-than-expected first-quarter fiscal 2026 results, with year-over-year growth in revenues and earnings, but the market reacted cautiously due to concerns over rising tariffs and their impact on pricing [1][5]. Financial Performance - Total revenues increased by 2.5% year over year to $165.61 billion, while adjusted earnings per share (EPS) reached 61 cents, exceeding the Zacks Consensus Estimate of 57 cents [2]. - The e-commerce segment grew by 22% globally, driven by strong demand for store-fulfilled pickup, delivery, and marketplace services [2]. - Advertising revenues surged by 50%, and membership income rose by 14.8%, contributing to a consolidated gross profit margin increase of 12 basis points to 24.2% [3]. Challenges and Outlook - Currency headwinds negatively impacted performance, reducing reported sales by $2.4 billion in the first quarter, with expectations of a 120 basis-point hit to revenue growth in the second quarter due to unfavorable exchange rates [4]. - Walmart refrained from providing EPS guidance for the second quarter due to uncertainties related to tariffs and the economic environment, although it reaffirmed its full-year guidance with expected revenue growth of 3% to 4% at constant currency [5][6]. Market Position and Valuation - Walmart shares have increased by 50.6% over the past year, outperforming the broader Zacks Retail – Wholesale sector's growth of 16.7% and the S&P 500's increase of 11.2% [8]. - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 35.97, above the industry average of 33.19, indicating a premium valuation supported by strong fundamentals and growth in high-margin areas [14]. Long-term Strategy - Despite short-term challenges, Walmart's growing e-commerce presence, strong value proposition, and expansion into high-margin areas position it well in the retail sector, with robust long-term fundamentals [7][17].

Core Insights - Walmart announced plans to raise prices due to tariffs, indicating potential inflation concerns across the retail sector [2][8] - The market is currently seeking clarity on tariffs, with mixed stock performance reflecting cautious optimism [5][8] - Upcoming retail earnings reports may provide insights into changing consumer spending habits [6][8] Group 1: Walmart and Tariffs - Walmart's decision to raise prices affects over two-thirds of its products, which are domestically sourced, suggesting a muted impact from tariffs [2] - The company anticipates that the increase in costs will lead to higher prices for consumers, raising concerns about a domino effect among other retailers [2] Group 2: Market Reactions and Economic Indicators - The S&P 500 closed up 0.4%, while the Nasdaq Composite fell by 0.2%, indicating mixed market reactions [1] - The U.S. imported nearly $1 trillion worth of goods from Canada and Mexico in 2024, with new tariffs expected to increase consumer costs by approximately $750 annually for these goods [4] Group 3: Retail Sector Outlook - Retailers such as Home Depot, Lowe's, Target, TJ Maxx, and Ralph Lauren are set to report earnings, which will shed light on consumer spending trends [6] - The weak start to the housing season may influence spending patterns, with consumers potentially opting to renovate existing homes rather than making new purchases [6] Group 4: Corporate Developments - Applied Materials shares dropped by 5% following mixed results and guidance impacted by tariffs, highlighting the uncertainty in the market [7] - Charter Communications is acquiring Cox Communications for $34.5 billion, reflecting ongoing consolidation in the telecommunications sector [7]

Core Viewpoint - Walmart reported Q1 results that exceeded expectations but indicated that rising prices due to tariffs will be passed on to customers [1][3][4] Group 1: Q1 Results - Walmart's Q1 sales increased by 2% to $165.6 billion, slightly above estimates of $165.59 billion [3] - International sales grew nearly 8%, with global e-commerce business expanding by 22% [3] - Q1 EPS was $0.61, surpassing last year's $0.60 and exceeding expectations of $0.57 by 7% [4] - Walmart has achieved or exceeded the Zacks EPS Consensus for 11 consecutive quarters, with an average earnings surprise of 5.26% in the last four quarters [4] Group 2: Guidance & Outlook - For Q2, Walmart expects sales to increase by 3.5%-4.5%, aligning with Zacks' estimate of $174.71 billion or 3% growth [8] - Walmart withheld Q2 EPS guidance due to uncertainties surrounding tariffs [8] - The company maintained its full-year sales growth forecast of 3%-4% and adjusted EPS between $2.50-$2.60 [9] - Walmart's CFO noted that the company typically gains market share during economic uncertainty [9] Group 3: Valuation Comparison - Walmart is trading at a P/E of 37.3X, significantly higher than Target's 10.6X and the Zacks Retail-Supermarkets Industry average of 14.2X [10] - Despite the high P/E, Walmart's price-to-sales ratio is less than 2X, indicating some valuation support [10] Group 4: Investment Outlook - Following the Q1 report, Walmart stock holds a Zacks Rank 3 (Hold) and is considered a viable long-term investment [12] - The potential for upside or downside risk may depend on earnings estimate revisions in response to the impact of higher prices on the retailer's outlook [12]

Walmart's business is strong enough to withstand tariff headwinds without increasing its prices, according to the discount retailer's former U.S. CEO.Bill Simon, who ran Walmart U.S. from 2010 to 2014, suggests the company may be overstating challenges tied to tariffs."If you look down deep and dig into the details of their earnings release today, you know this quarter they grew their gross profit margin in the U.S. business 25 basis points. So, they're expanding their margin. They also reported their gener ...

President Donald Trump's shifting trade policy is causing headaches for America's largest retailer. While Walmart CFO John David Rainey welcomed the recent reduction in tariffs, he said the company is not out of the woods yet."Let me emphasize, we still think that's too high," he said of the latest rates during Walmart's earnings call on Thursday. Walmart says it imports about one-third of what it sells in the US from other countries, namely China, Mexico, Canada, Vietnam, and India, and that cargos are ...

Core Viewpoint - Walmart's stock is poised for significant movement due to strong underlying factors, market positioning, and positive analyst sentiment ahead of the FQ1 2026 earnings report [1] Financial Performance - Walmart's Q1 results showed a 2.5% revenue increase, driven by digital sales, U.S. comps, and Sam's Club [5] - U.S. Walmart sales grew by 3.2% on a 4.5% comp, while international sales remained flat [6] - Adjusted EPS for the quarter was $0.61, reflecting a 1.6% growth rate compared to the previous year [7] - Operating cash flow increased by 25%, and free cash flow turned positive at $0.4 billion, a significant improvement from last year's negative figure [8] Guidance and Market Sentiment - Walmart reaffirmed its revenue growth forecast of 3.5% for the year, with expectations of stronger performance in the first half [4] - Analysts maintain a bullish sentiment, with a price target of $103.94, indicating an 8.61% upside potential [5] - The company’s capital return strategy, including dividends and share buybacks, supports positive market sentiment [9] Dividend and Capital Management - Walmart has a dividend yield of 0.98% and a history of increasing dividends for 53 years, with a payout ratio of 39% [9] - The company raised some cash through debt in Q1, but the overall cash balance remains stable, and leverage is low [10] Stock Price Action - Following the earnings release, Walmart's stock experienced mixed price action, indicating potential near-term volatility [11] - Critical support is identified at the 30-day EMA near $94.50, while resistance is near $100, with potential for a 10% to 20% upswing if surpassed [12]