In the first quarter of fiscal 2026, Walmart Inc. reported revenue of US $165.6 billion, a 2.5% increase year over year and a 4.0% gain on a constant-currency basis. This growth occurred despite a roughly 100-basis-point headwind from last year’s leap day. Operating income rose by US $0.3 billion, or 4.3% year over year (3.0% on a constant-currency basis), reflecting higher gross margins and stronger performance in membership and digital channels.
Revenue Drivers and Currency Impact
Walmart overcame the leap-year timing issue through resilient demand for its core everyday-low-price offerings and continued international expansion. Excluding currency effects, sales climbed 4.0%, while the reported 2.5% increase reflected a 100-basis-point negative impact from currency translation.
eCommerce and Fulfillment Advances
Global eCommerce revenue grew by 22%, led by expanded store-fulfilled pickup and delivery services and an increased contribution from the online marketplace. These gains underscore Walmart’s progress in integrating its physical store network with its digital operations.
Advertising and Membership Income
The company’s advertising division, Walmart Connect, recorded a 50% rise in global revenue, driven in part by its partnership with VIZIO; U.S. advertising revenues increased 31%. Membership and other non-merchandise income rose 3.7%, including a 14.8% increase in membership fees. Together, these higher-margin businesses helped diversify Walmart’s revenue streams.
Margin Improvement and Profitability Metrics
Walmart U.S. gross margins improved by 12 basis points as the company enhanced cost efficiencies. Operating income increased 4.3% (3.0% adjusted for currency), despite a 250-basis-point leap-year comparability headwind. Return on assets reached 7.5%, and return on invested capital rose to 15.3%, a 30-basis-point improvement.
Earnings and Capital Actions
GAAP earnings per share (EPS) were US $0.56, while adjusted EPS was US $0.61 after excluding a net US $0.05 loss on equity and other investments. During the quarter, Walmart issued US $4 billion in long-term debt at favourable rates to support general corporate initiatives, reflecting its strong credit profile.
Outlook and Guidance
Walmart provided guidance for the second quarter and reaffirmed its full-year FY 26 targets. The company expects net sales to grow 3%–4% and adjusted operating income to increase 3.5%–5.5% on a constant-currency basis, assumptions that include approximately 150 basis points of leap-year comparability headwinds and the impact of the VIZIO acquisition. Management held a conference call on May 15, 2025, to review these results and projections.
Overall, Walmart’s Q1 results reflected a balanced mix of stable core retail performance, rapid digital growth, and expanding higher-margin services, positioning the company to meet its full-year objectives.
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