BENTONVILLE, Ark., May 21, 2026, 06:14 CDT
Walmart stuck with its full-year sales and profit guidance on Thursday after topping forecasts in the first quarter. But the retailer put out a weaker outlook for the current quarter and flagged higher fuel costs that took a bite out of operating income. Net revenue came in at $177.8 billion, a 7.3% gain. Shares dropped about 2% in premarket trading after management projected second-quarter sales and profit would miss estimates.
Walmart’s numbers are in focus given its reputation as a quick read on the U.S. consumer. People are sticking with food, essentials, and lower-cost picks, but high gas prices over $4 a gallon and stubborn inflation are trimming budgets and pushing up freight costs.
Walmart U.S. same-store sales grew 4.1%, coming in above the 3.8% analysts had forecast, according to LSEG estimates. E-commerce sales in the U.S. climbed 26%, driven by quicker deliveries, more advertising, and demand for Walmart’s third-party marketplace.
Walmart kept its full-year outlook steady. The retailer still sees net sales rising 3.5% to 4.5% for the year, with adjusted EPS between $2.75 and $2.85, excluding certain items.
Walmart’s view for the next quarter is softer. The retailer sees net sales up 4% to 5% and adjusted earnings coming in at 72 to 74 cents a share. That’s below the 5.09% sales growth and 75 cents per share analysts were looking for.
Walmart said operating income took a roughly 250 basis point, or 2.5 percentage point, hit from fuel costs, as the retailer shouldered more of delivery and fulfillment expenses to hold prices steady. Consumers are “feeling some pressure,” the company said. Still, sales strength continued. Reuters
Walmart Chief Executive John Furner said the quarter was about execution, not just struggling competitors. “Better shopping experiences, a broader assortment, and faster delivery,” Furner said, were reflected in results. It’s among the first big quarters since Furner stepped in as chief executive on Feb. 1. Reuters
Walmart stuck with its annual outlook, matching what analysts were looking for, despite a decent quarter. Oppenheimer pointed to higher fuel costs as a risk. Morgan Stanley, ahead of the results, said Walmart benefits from price-conscious shoppers and its pricing edge.
Walmart gets a boost from shoppers hunting for value, according to Morningstar analyst Brett Husslein. “When the economy is hurting or people feel like their wallet is stretched, they go to Walmart,” Husslein told Reuters this week. Reuters
Target lifted its annual sales outlook after reporting stronger first-quarter sales, but the retailer stayed cautious on the consumer outlook. Kroger and Albertsons have also kept conservative guidance for the year, even as rivals post gains. Competitors are signaling some improvement, though they start from weaker spots.
The risk is the fuel shock could push more shoppers to Walmart, but it also pressures margins and stretches lower-income customers. Husslein called it a “capital-intensive e-commerce arms race” for Walmart, with little space for error when investors already expect the company to keep growing. Reuters
Walmart keeps picking up share for now. Investors are weighing if bigger sales, quicker delivery, and higher-margin areas like ads and membership can keep covering the expense of catering to a more careful customer.
