New York, May 24, 2026, 16:01 (EDT)
Walmart shares slipped into the U.S. holiday break, with the stock last seen at $120.27 late Friday, off by about 0.9%. The retailer’s strong quarter didn’t ease fears over higher fuel costs and squeezed consumers. Walmart’s market value stood at about $963.5 billion, as a cautious profit view weighed on the stock.
That’s relevant this week since there’s no Monday trading. U.S. markets will be closed for Memorial Day on May 25 following the standard weekend break, so Walmart and the wider retail sector won’t see the next full session until Tuesday.
Walmart’s Q1 results showed revenue up 7.3% to $177.8 billion, with global e-commerce sales higher by 26%. Adjusted earnings came in at 66 cents per share. U.S. comparable sales, which includes stores and e-commerce open at least a year, gained 4.1%. On a constant currency basis, revenue grew 5.9%.
Walmart shares slid 7.3% Thursday after the company stuck to its full-year sales and profit forecasts and projected second-quarter adjusted earnings of 72 to 74 cents a share, short of the 75 cents analysts were looking for, according to Reuters. The broader market managed small gains as the drop played out.
Walmart sticking to its full-year targets didn’t satisfy everyone, with expectations running high after shares touched multi-year highs. Bryan Hayes, stock strategist at Zacks Investment Research, told Reuters the reaffirmed guidance “was not enough.” He said the quarter pointed to Walmart capturing “real traffic share,” rather than just relying on higher prices. Reuters
Fuel remains a sticking point. Walmart said extra fuel costs in distribution and fulfillment shaved about $175 million off first-quarter operating income. CFO John David Rainey said consumers are “not immune” and “not bulletproof” to the strain in the economy. More shoppers came in, but spending per trip lost steam.
The read-through from rivals was mixed. Target lifted its full-year sales outlook last week but flagged risks in the broader environment. Costco slipped with other staples stocks on Thursday. Costco is due to report earnings on May 28. That release is set to show if bulk shoppers are faring better than the rest.
Walmart is seeing turnover in its operating leadership. Tom Ward, Sam’s Club COO, and Cedric Clark, who leads U.S. store operations, are both leaving the company, Reuters said Friday. CEO John Furner is driving a tech-based push centered on marketplace, delivery and higher-income customers.
Scale remains key to the company’s bullish outlook. Before earnings, Morningstar’s Brett Husslein told Reuters shoppers pick Walmart when their “wallet is stretched.” TD Cowen’s Oliver Chen, talking about the retailer’s online and loyalty strategy, put it this way: “Never waste a good crisis.” Reuters
Walmart’s risk is clear. If fuel, freight, or food expenses rise, its low-price play is tough to keep, especially as more lower-income customers trade down. The stock trades at around 42 times earnings on the latest quote. That’s a pricey multiple, and it means there’s not much room if guidance slips or margins come in light.
Short trading week coming up, with investors focused on Tuesday’s open, Costco earnings, and the PCE price index, which tracks what consumers pay and is out May 28. Reuters’ Morning Bid noted inflation and energy will be in focus during the holiday week.
Walmart draws the shoppers, no doubt. Now it comes down to Tuesday, when investors will want to see if the retailer keeps turning those visits into profit with fuel and price headwinds still there.
