Overview of Q1 Performance

Walmart Inc. (WMT) experienced a surge in its stock price during premarket trading on Thursday, following the release of its fiscal 2026 first-quarter earnings report. This report indicated that the retailer’s profit exceeded analysts’ expectations, and the company reaffirmed its guidance for the year.

Earnings Recap

The world’s largest retailer reported an adjusted earnings per share (EPS) of $0.61, alongside total revenues rising 2.5% to $165.61 billion. Analysts, as per Visible Alpha, had predicted an EPS of $0.58 and revenue of $165.99 billion.

Executive Insights

Walmart’s CEO, Doug McMillon, noted, “We delivered a solid first quarter in a dynamic operating environment.” He highlighted the company’s strategic position and its commitment to investing in long-term value while navigating near-term challenges.

Forward-Looking Guidance

The company has kept its fiscal 2026 guidance unchanged, anticipating second-quarter net sales growth in the range of 3.5% to 4.5% in constant currency. Previously, Walmart projected a 3% to 4% increase from fiscal 2025’s net sales of $674.5 billion and adjusted EPS ranging from $2.50 to $2.60.

CFO John David Rainey mentioned the complexities of the economic landscape, stating, “Given the dynamic nature of the backdrop, and the range of near-term outcomes being exceedingly wide and difficult to predict, we felt it best to hold from providing a specific range of guidance for operating income growth and EPS for the second quarter.” However, he expressed confidence in the company’s ability to meet its annual guidance.

Market Reaction

In the immediate aftermath of the earnings report, Walmart’s shares surged nearly 3%. Year-to-date, the shares were up by 7%, indicating a favorable response from the market following the earnings announcement.

Analysts’ Views

Prior to the earnings release, analysts maintained a positive outlook for Walmart’s first quarter but cautioned that the remainder of the fiscal year might present challenges. Retailers, including Walmart, are expected to navigate the repercussions of recent tariffs imposed during the Trump administration, which could impact future sales and profitability.