Financial Data and Key Metrics Changes - For the first quarter, the company reported a sales growth of 4% and profit growth of 3% in constant currency [6] - International sales increased by 7.8%, with e-commerce growing globally by 22% [6][25] - Consolidated revenue increased by 4% in constant currency, despite currency headwinds reducing reported sales by $2.4 billion [25] - Adjusted operating income grew by 3% in constant currency, with adjusted EPS of 61¢ exceeding the guided range [33] Business Line Data and Key Metrics Changes - Walmart US comp sales grew by 4.5%, driven by strong e-commerce sales growth of 21% [26] - Health and wellness sales increased in the high teens, while general merchandise sales saw a slight decline [26] - Sam's Club US comp sales, excluding fuel, increased nearly 7%, with e-commerce growing by 27% [28] - The advertising business across markets increased by 50%, with Walmart Connect in the US growing by 31% [31] Market Data and Key Metrics Changes - The international business saw a sales growth of 7.8% in constant currency, particularly strong in China and Flipkart [27] - Items delivered same or next day in international markets increased by 35%, with about 45% delivered in under three hours [27] - The company reported that over 50% of Sam's Club members now transact digitally [28] Company Strategy and Development Direction - The company is focused on driving e-commerce growth and enhancing delivery speed, aiming to reach 95% of the US population with delivery options of three hours or less [8] - The strategy includes diversifying profit streams through e-commerce, advertising, and membership, with a commitment to grow profit faster than sales [19][36] - The company plans to continue investing in automation, store growth, and technology, while managing costs associated with tariffs [34][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating cost pressures from tariffs and maintaining profitability despite challenges [21][36] - The company anticipates that the current economic environment will not alter its long-term financial framework [36][95] - Management highlighted the importance of managing inventory effectively in a dynamic environment, particularly in light of tariff impacts [104] Other Important Information - The company repurchased $4.6 billion in stock during the first quarter, equivalent to the total share repurchases for the previous year [35] - The company expects capital expenditures to be in the range of 3% to 3.5% of sales for the fiscal year [35] Q&A Session Summary Question: E-commerce profitability and future margins - Management noted that e-commerce achieved profitability for the first time, driven by network densification and reduced delivery costs [50][51] Question: Balancing investments and profit growth - Management emphasized the importance of growing profit faster than sales while remaining open to increasing investments as needed [66] Question: Consumer behavior across income levels - Management reported growth across all income cohorts, with a focus on value and convenience for customers [73][78] Question: Capital allocation and share buybacks - Management confirmed a commitment to share buybacks in response to price dislocations, while balancing investments and dividends [85] Question: Impact of tariffs on marketplace sellers - Management indicated that inventory is flowing well and that tools have been developed to assist sellers in managing their inventory effectively [107]

Core Insights - Walmart reported fiscal Q4 2025 earnings of $0.66 per share on revenue of $180.55 billion, slightly exceeding Wall Street's revenue expectations but falling short of the whisper earnings forecast of $0.68 per share [2][4] - Earnings increased by 10% compared to the same quarter last year, while sales rose by 4%, indicating resilience despite tariff concerns and recession fears [2][11] - Analysts had anticipated earnings of $0.65 per share on revenue of $179.42 billion, making the revenue growth a positive sign for the company [4] Forward Estimates - Walmart projects Q1 2025 earnings between $0.57 and $0.58 per share, with revenue expected between $166.35 billion and $167.97 billion [5] - For fiscal 2026, the company anticipates earnings of $2.50 to $2.60 per share on revenue ranging from $701.4 billion to $708.2 billion, reflecting confidence in its performance amid economic challenges [5] Company Profile - Walmart operates as a tech-enabled omnichannel retailer, focusing on helping customers save money and live better through various shopping channels [6] - The company has three segments: Walmart U.S., Walmart International, and Sam's Club, and offers a wide range of products including groceries, health and wellness items, and consumer electronics [6][7][8][9] - Walmart was founded in 1945 and is headquartered in Bentonville, Arkansas, having changed its name from Wal-Mart Stores, Inc. in February 2018 [10]

Core Viewpoint - Walmart, the largest private employer in the U.S., has indicated potential price increases due to tariff uncertainties, despite meeting Wall Street expectations for its first quarter results [1][6]. Group 1: Financial Performance - Walmart reported revenue of $165.6 billion, aligning with expectations, and adjusted earnings per share slightly exceeded Wall Street forecasts [6]. - The company anticipates net sales growth of 3.5% to 4.5% in the second quarter and expects full-year net sales to grow by 3% to 4% [10]. Group 2: E-commerce and Store Performance - For the first time, Walmart's e-commerce business achieved profitability for a full quarter, with e-commerce sales growing by 22% [7]. - Sales at U.S. stores open for at least a year increased by 4.5%, driven by strong growth in health and grocery segments [7]. Group 3: Tariff Impact and Strategic Response - Walmart's CEO expressed that the company cannot absorb all the pressure from tariffs due to narrow retail margins, indicating a need for potential price hikes [1]. - The company plans to make strategic investments to enhance its value proposition despite tariff uncertainties [2]. - A recent meeting between Walmart's CEO and President Trump was described as productive, focusing on trade negotiations and tariff impacts [5]. Group 4: Product Category Performance - The company experienced weakness in the general merchandise category, particularly in electronics, home, and sporting goods, but this was offset by strong sales in toys, automotive, and kids' apparel [8].

"It's more than any supplier can absorb. And so I'm concerned that the consumer is going to start seeing higher prices. You'll begin to see that, likely towards the tail end of this month, and then certainly much more in June." Walmart also reported major growth in revenue from its membership programs, with global membership fee income up nearly 15%. The company doesn't disclose publicly how many Plus members it has, but it is estimated at more than 15 million, according to Barclays. CEO Doug McMillon gave ...

Financial Performance - Q1 FY26 - Total revenues reached $165.6 billion, including a negative impact of $2.4 billion from currency fluctuations[12] - Total revenues (cc) increased +4.0%[12] - Adjusted operating income (cc) of $7.3 billion, up +3.0%[23] - Adjusted EPS of $0.61, up 1.7%[28] - Operating cash flow increased $1.2 billion[37] - Free cash flow increased $0.9 billion[37] Segment Performance - Walmart U.S net sales were $112.2 billion, +3.2%; eCommerce +21%[49] - Walmart International net sales (cc) were $32.1 billion, +7.8%[59] - Sam's Club U.S net sales were $22.1 billion, +2.9%, Net sales without fuel +5.5%, eCommerce +27%[92] Guidance - Q2 FY26 net sales (cc) are expected to increase 3.5% to 4.5%, including approximately 20 bps tailwind from the acquisition of VIZIO[5] - FY26 net sales are expected to increase 3.0% to 4.0%, including approximately 20 bps tailwind from the acquisition of VIZIO[7] - FY26 adjusted operating income is expected to increase 3.5% to 5.5%[7]

Revenue and Sales Performance - Revenue of $165.6 billion increased by 2.5%, or 4.0% in constant currency (cc) [6] - Global eCommerce sales grew 22%, driven by store-fulfilled pickup & delivery and marketplace [7] - Walmart U.S. comp sales rose by 4.5%, with strong performance in health & wellness and grocery [14] - Walmart's net sales for the three months ended April 30, 2025, were $163,981 million, representing a 2.5% increase from $159,938 million in the same period of 2024 [34] - Walmart U.S. net sales for the three months ended April 30, 2025, were $112,163 million, a 3.2% increase from $108,670 million in the same period of 2024 [37] - Walmart International net sales decreased by 0.3% to $29,754 million compared to $29,833 million in the prior year [37] - Sam's Club U.S. net sales increased by 2.9% to $22,064 million from $21,435 million year-over-year [37] - Consolidated net sales for Walmart were $163,981 million, reflecting a 2.5% increase from $159,938 million in the previous year [37] - U.S. comparable sales with fuel increased by 4.4% for the 13 weeks ended May 2, 2025, compared to 3.8% in the prior year [38] Operating Income and Profitability - Operating income increased by $0.3 billion, or 4.3%, with adjusted operating income growth of 3.0% (cc) [7] - Operating income increased by 4.3% to $7,135 million for the three months ended April 30, 2025, up from $6,841 million in the prior year [34] - Adjusted operating income for the consolidated segment was $7,135 million, a 4.4% increase from $6,841 million in the same period last year [37] - Operating income for Walmart International was $1,264 million, down 17.5% from $1,533 million in the previous year [37] - Operating income for the trailing twelve months ended April 30, 2025, was $29,642 million, up from $27,613 million in 2024 [65] Cash Flow and Financial Position - Operating cash flow increased by $1.2 billion to $5.4 billion, while free cash flow rose by $0.9 billion to $0.4 billion [12] - Cash flows from operating activities for the three months ended April 30, 2025, were $5,411 million, compared to $4,249 million in 2024, indicating improved cash generation [36] - Free cash flow for the three months ended April 30, 2025, was $425 million, an increase of $852 million compared to a negative $427 million in the prior year [48] - The company experienced a net cash used in investing activities of $5,093 million for the three months ended April 30, 2025, compared to $4,409 million in 2024 [36] Membership and Other Income - Membership income grew by 14.8%, contributing to a 3.7% increase in total membership and other income [7] Inventory and Assets - Inventory increased by 3.8% to $57.5 billion, maintaining healthy in-stock levels [12] - Walmart's inventories increased to $57,467 million as of April 30, 2025, from $56,435 million at the end of January 2025 [35] - Total assets as of April 30, 2025, were $262,372 million, a slight increase from $260,823 million at the end of January 2025 [35] - Average total assets increased to $258,213 million for the trailing twelve months ended April 30, 2025, compared to $249,554 million in 2024 [63] - Total assets as of April 30, 2025, were $262,372 million, an increase from $254,054 million in 2024 [65] Net Income and Earnings Per Share - Consolidated net income attributable to Walmart decreased by 12.1% to $4,487 million for the three months ended April 30, 2025, compared to $5,104 million in 2024 [34] - Consolidated net income for the trailing twelve months ended April 30, 2025, was $19,489 million, down from $19,681 million in 2024 [63] - Reported EPS for the three months ended April 30, 2025, was $0.56, with adjusted EPS at $0.61 after accounting for unrealized and realized gains and losses [56] - For the three months ended April 30, 2024, reported EPS was $0.63, with adjusted EPS at $0.60 after adjustments for unrealized and realized gains and losses and business reorganization charges [57] Tax and Returns - The effective tax rate for the three months ended April 30, 2025, was 22.6%, adjusted to 22.8% after accounting for investment gains and losses [56] - Return on assets (ROA) decreased to 7.5% for the trailing twelve months ended April 30, 2025, down from 7.9% in 2024, primarily due to increased average total assets and a slight decline in net income [60] - Return on investment (ROI) increased to 15.3% for the trailing twelve months ended April 30, 2025, compared to 15.0% in 2024, driven by higher operating income [60] Guidance and Future Expectations - The company expects net sales for Q2 FY26 to increase by 3.5% to 4.5% in constant currency [23] - Fiscal year 2026 guidance remains unchanged, with net sales expected to be between $674.5 billion and $681 billion [27] Debt and Liabilities - The company reported a decrease in interest expense on debt by 13.1%, totaling $519 million for the three months ended April 30, 2025 [34] - Walmart's total current liabilities increased to $102,920 million as of April 30, 2025, compared to $96,584 million at the end of January 2025 [35] - Average invested capital rose to $298,082 million for the trailing twelve months ended April 30, 2025, compared to $284,415 million in 2024 [65]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, publications, and personal analysis intended for educational and research purposes [1]. - It clarifies that the information does not constitute any recommendation or advice for investment actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research before making investment decisions, especially regarding instruments they do not fully understand [1].

Group 1 - The market has overestimated the impact of tariffs, with predicted severe consequences not materializing in the first quarter of the year [1] Group 2 - The investment strategy involves a combination of macroeconomic analysis and individual company assessment, focusing on strong economies and quality companies [2]

Core Viewpoint - The Consumer Financial Protection Bureau (CFPB) has dropped its lawsuit against Walmart and Branch, which was initially filed in December 2022, regarding allegations of illegal account openings and misleading practices related to gig economy drivers [1][6]. Group 1: Lawsuit Details - The CFPB's lawsuit alleged that Walmart and Branch opened accounts for gig economy delivery drivers without their consent, required drivers to receive their pay through these accounts, charged junk fees, and failed to provide promised "instant access" to pay [2][3]. - The complaint specifically targeted Walmart's Spark Driver program, which involves gig economy drivers making last-mile deliveries, and Branch's deposit account accessible via a digital app and debit card [3]. Group 2: Company Responses - Walmart expressed its intention to defend itself in court, claiming that the CFPB's lawsuit contained factual errors and misstatements of law [4]. - Branch also criticized the CFPB's lawsuit, stating that it misrepresented the law and facts, and highlighted the quick access to funds it provides to drivers [5]. Group 3: Context of CFPB Actions - The dismissal of this lawsuit is part of a trend where several lawsuits filed under the Biden administration have been dropped during the Trump administration, including a case against Horizon Card Services [6].

Group 1: Earnings Overview - Earnings season is currently active, primarily focused on retailers, with overall positive results from S&P 500 companies despite ongoing uncertainties [1] - Walmart (WMT) is set to report earnings this week, with shares having increased over 60% in the past year, outperforming all but Tesla among the "Magnificent Seven" [2][3] Group 2: Walmart's Earnings Expectations - Analysts have lowered EPS expectations for Walmart's upcoming release to $0.57, a decrease of approximately 12% since mid-February, with anticipated earnings declining 5% year-over-year [4] - Forecasted sales for Walmart are projected at $165.6 billion, indicating a 2.5% growth compared to the previous year, while the downward EPS revisions suggest a profitability challenge [4] Group 3: Key Performance Indicators - Digital sales have shown significant growth, with a 16% year-over-year increase in global eCommerce sales, driven by store-fulfilled pickup and delivery [9] - Same-store sales (excluding fuel) are expected to rise by 4% year-over-year, down from 4.9% and 5.5% in the previous periods [10] Group 4: Valuation and Market Position - Walmart shares are currently trading at a forward 12-month earnings multiple of 36.2X, significantly above the five-year median of 23.9X, reflecting a 75% premium compared to the S&P 500 [11] - The elevated earnings multiple is attributed to Walmart's digital and operational successes, with investors anticipating continued growth trends [11] Group 5: Strategic Insights - Walmart's ability to navigate consumer downturns is a notable strength, as higher-income households tend to shop at Walmart during economic challenges, providing a buffer against affordability issues [14]