On Thursday, May 21st Walmart reported Q1 revenue of $177.8B, up 5.9% in constant currency and slightly ahead of expectations. US comps slowed modestly to 4.1%, though share gains continued across income cohorts, with particular strength in general merchandise (including fashion) and beauty, not historic areas of strength for the retailer. eCommerce continues to be the primary growth driver of the business and Marketplace expansion was a standout this quarter.
The tone of the call felt like an equal mix of confident and measured. Management emphasized the business is performing well but “not bulletproof” amid macro headwinds. Higher-than-expected fuel costs pressured operating income, and consumer commentary, particularly at the low end, was cautious, as leadership signaled inflation may accelerate further in the remainder of FY26. These factors all contributed to the stock declining 7%.
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