# Walmart (WMT) Q1 FY2027 earnings

Results filed 2026-05-21 for the quarter ended 2026-04-30. Source page: https://earnings.opennash.com/companies/wmt/2027-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/104169/000010416926000095/0000104169-26-000095-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Walmart's first-quarter revenue was $177.8 billion, up 7.3%, with GAAP EPS of $0.67, adjusted EPS of $0.66, and operating income up 5.0%.

Walmart grew total revenue 7.3% to $177.8 billion, or 5.9% in constant currency. Global eCommerce sales rose 26% and global advertising rose 37%. Operating income rose 5.0% to $7,493 million, held back by about 250 bps of higher fuel costs in distribution and fulfillment. GAAP EPS was $0.67 and adjusted EPS was $0.66. Free cash flow was negative $1.9 billion because capital spending rose and inventory receipts were timed earlier.
For the second quarter, Walmart expects net sales to grow 4% to 5% in constant currency and adjusted EPS of $0.72 to $0.74. Its fiscal 2027 outlook is unchanged, including adjusted EPS of $2.75 to $2.85. The main tension is that fuel costs, depreciation and healthcare costs are growing expenses faster than sales. Inventory is also up 8.9%, and the guidance assumes no benefit from IEEPA tariff refunds.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $177.8 billion | up 7.3%, or 5.9% in constant currency | GAAP |
| Diluted EPS | $0.67 | up 19.6% from a year ago | GAAP |
| Adjusted EPS | $0.66 | up 8.2% from a year ago | non-GAAP |
| Operating income | $7,493 | up 5.0% from a year ago | GAAP |
| Operating income as a percent of net sales | 4.3% | down from 4.4% a year ago | GAAP |
| Gross profit rate | 24.3% | up 6 bps | GAAP |
| Operating cash flow | $4.7 billion | a decrease of $0.7 billion | GAAP |
| Free cash flow | negative $1.9 billion | a decrease of $2.4 billion | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Walmart U.S. net sales | $117.2 billion | +4.5% |
| Walmart International net sales (cc) | $32.8 billion | +10.1% |
| Sam's Club U.S. net sales | $23.4 billion | +6.1% |
| Global eCommerce sales | 26% | growth; 23% of total net sales |
| Global advertising business | 37% | growth, with Walmart U.S. advertising up 36% |
| Global membership fee revenue | 17.4% | growth |
| Walmart U.S. comp sales (ex. fuel) | 4.1% | vs. 4.5% a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Net sales growth (constant currency) | second quarter of fiscal 2027 | 4.0% to 5.0% |
| Operating income growth (constant currency) | second quarter of fiscal 2027 | 7.0% to 10.0% |
| Adjusted EPS | second quarter of fiscal 2027 | $0.72 to $0.74 |
| Net sales growth (constant currency) | fiscal year 2027 | 3.5% to 4.5% |
| Adjusted operating income growth (constant currency) | fiscal year 2027 | 6.0% to 8.0% |
| Net interest expense increase | fiscal year 2027 | approximately $200M to $300M |
| Effective tax rate | fiscal year 2027 | 23.5% to 24.5% |
| Adjusted EPS | fiscal year 2027 | $2.75 to $2.85 |
| Capital expenditures | fiscal year 2027 | Approximately 3.5% of net sales |

## Key takeaways

1. **eCommerce and advertising drove broad growth** Global eCommerce sales grew 26% and the global advertising business grew 37%. Walmart U.S. comp sales grew 4.1%, with transactions up 3.0%.
2. **Fuel costs cut operating income growth** Operating income rose 5.0%, negatively affected by 250 bps from higher fuel costs in distribution and fulfillment. Adjusted operating income rose 5.1% in constant currency.
3. **Free cash flow turned negative on capex** Free cash flow was negative $1.9 billion, a decrease of $2.4 billion. Capital expenditures rose $1.7 billion and operating cash flow fell $0.7 billion.
4. **Second-quarter guidance points to faster profit growth** Walmart expects Q2 net sales to grow 4.0% to 5.0% and operating income to grow 7.0% to 10.0%, both in constant currency. Adjusted EPS is guided to $0.72 to $0.74.
5. **Full-year outlook unchanged despite expense pressure** Adjusted EPS guidance stays at $2.75 to $2.85. Higher depreciation and healthcare costs deleveraged operating expenses by 33 bps, and ROI fell to 14.9% from 15.3%.

## Questions

**What were Walmart's headline results for Q1 FY27?** Total revenues were $177.8 billion, up 7.3%, or 5.9% in constant currency. GAAP EPS was $0.67, and adjusted EPS was $0.66, up 8.2%.
**How did Walmart's profitability change in the quarter?** Operating income rose 5.0% to $7,493 million, but the operating margin was 4.3% versus 4.4% a year earlier. Fuel costs and higher depreciation and healthcare expenses weighed on results, while the gross profit rate rose 6 bps to 24.3%.
**What is Walmart guiding for the second quarter?** Walmart expects constant-currency net sales growth of 4.0% to 5.0% and operating income growth of 7.0% to 10.0%. It expects adjusted EPS of $0.72 to $0.74.
**Did Walmart change its fiscal 2027 outlook?** No, the full-year outlook is unchanged. It still includes net sales growth of 3.5% to 4.5% in constant currency and adjusted EPS of $2.75 to $2.85, and assumes no impact from IEEPA tariff refunds.
**Why was free cash flow negative?** Free cash flow was negative $1.9 billion, a decrease of $2.4 billion. Capital expenditures rose $1.7 billion, and operating cash flow fell $0.7 billion on the timing of inventory receipts.

## Slides and investor documents

- [Presentation    PDF](https://stock.walmart.com/_assets/_8c8425b76a1d46bbbbc16466da2a6b9c/walmart/db/938/9995/presentation/Earnings+Presentation+%28FY27+Q1%29.pdf) (Slide deck)
- [Transcript - Management Call    PDF](https://stock.walmart.com/_assets/_8c8425b76a1d46bbbbc16466da2a6b9c/walmart/db/938/9995/transcript_management_call/Earnings+Transcript+%28FY27+Q1%29.pdf) (Company's official transcript)
- [Transcript - Buy Side Follow Up Call    PDF](https://stock.walmart.com/_assets/_8c8425b76a1d46bbbbc16466da2a6b9c/walmart/db/938/9995/transcript_buy_side_follow_up_call/Buy+Side+Follow-Up+Call+Transcript+FY27+Q1.pdf) (Company's official transcript)
- [Earnings Terminology    PDF](https://stock.walmart.com/_assets/_8c8425b76a1d46bbbbc16466da2a6b9c/walmart/db/938/9995/earnings_terminology/Earnings+Terminology+%28FY27+Q1%29.pdf) (Document)
- [13-Week Comparable Sales    PDF](https://stock.walmart.com/_assets/_8c8425b76a1d46bbbbc16466da2a6b9c/walmart/db/938/9995/13_week_comparable_sales/Comp+Sales+Disclosure+%28FY27+Q1%29.pdf) (Document)
- [Unit Count & Square Footage    PDF](https://stock.walmart.com/_assets/_8c8425b76a1d46bbbbc16466da2a6b9c/walmart/db/938/9995/unit_count_square_footage/Unit+Counts+and+Square+Footage+%28FY27+Q1%29.pdf) (Document)