US' Walmart's Q1 FY26 revenue hits $165.6 bn, e-commerce jumps 22%

The gross margin rate improved by 12 basis points (bps), led by Walmart US operating income which grew by $0.3 billion, or 4.3 per cent. The adjusted income rose 3 per cent in constant currency, supported by improved gross margins, higher membership income, and better e-commerce economics. The global e-commerce sales surged 22 per cent, driven by store-fulfilled pickup, delivery, and marketplace expansion.

The adjusted earnings per share (EPS) stood at $0.61, excluding a $0.05 net loss on equity and other investments. GAAP EPS stood at $0.56, while adjusted EPS was reported at $0.61. Return on assets (ROA) was 7.5 per cent, and return on investment (ROI) reached 15.3 per cent, up 30 bps. The company also raised $4 billion in long-term debt at favourable rates for general corporate purposes, Walmart said in a press release.

In Q1 FY26, US net sales reached $112.2 billion, up 3.2 per cent. The operating income in US rose to $5.7 billion, reflecting a 7 per cent increase, while adjusted operating income stood at $5.7 billion as well, marking a 4.4 per cent rise YoY.

Meanwhile, Walmart International net sales reached $29.8 billion, nearly flat with the prior year, reflecting a marginal decline of 0.3 per cent. On a constant currency basis, however, net sales rose to $32.1 billion, up 7.8 per cent YoY. The international operating income declined by 17.5 per cent to $1.3 billion, and by 6.4 per cent on a constant currency basis to $1.4 billion.

For the second quarter (Q2) of fiscal 2026 (FY26), Walmart expects net sales to grow by 3.5 to 4.5 per cent in constant currency, based on Q2 FY25 sales of $167.8 billion, including a 20-bps tailwind from the Vizio acquisition.

For the full fiscal 2026 (FY26), Walmart maintains its original guidance issued on February 20, 2025. The company anticipates net sales growth of 3-4 per cent in constant currency. The adjusted operating income is expected to increase by 3.5-5.5 per cent, accounting for a 70 bps. The net interest expense is projected to rise by $100–200 million in FY26.

Fibre2Fashion News Desk (SG)