Walmart Inc.

Walmart said first-quarter constant-currency sales grew nearly 6%, with consolidated revenue in constant currency up nearly $10 billion. Enterprise eCommerce sales grew 26%, Walmart U.S. comp sales rose 4.1%, and first-quarter adjusted operating income growth in constant currency was approximately 5%. Walmart U.S. gross margin expanded 29 basis points, helped by merchandise mix for the first time in 18 quarters. Management said higher-than-planned fuel costs reduced operating income growth by about $175 million, or around 250 basis points, in global distribution and fulfillment operations. For guidance, Walmart reiterated full-year constant-currency sales growth of 3.5% to 4.5% and full-year constant-currency operating income growth of 6% to 8%. For Q2, it expects constant-currency operating income growth of 7% to 10% and EPS of $0.72 to $0.74; full-year EPS guidance remains $2.75 to $2.85. Management also said current exchange rates would imply about a 90 basis point benefit to reported sales growth and about a 130 basis point benefit to operating income growth for Q2.

John Furner emphasized that Walmart is winning on value, speed, and assortment as consumers feel pressure from higher fuel prices. He highlighted about 7,200 rollbacks, strong growth in eCommerce, advertising, marketplace, and membership, plus expanding use of AI through Sparky, which now has weekly active users up more than 100% in the last quarter and an average order value about 35% higher than non-Sparky customers. His tone was confident and strategic, framing Walmart as increasingly able to scale platforms globally and improve economics over time.

John Rainey focused on the financial tradeoffs of the quarter: nearly 6% constant-currency sales growth, about 5% adjusted operating income growth, and a roughly $175 million fuel-related hit to operating income growth. He said Walmart is reiterating its original full-year outlook despite the fuel spike and expects profitability to improve later in the year, with Q2 EPS of $0.72 to $0.74 and full-year EPS of $2.75 to $2.85. He also pointed to a stronger business mix, noting merchandise category mix was a tailwind to Walmart U.S. gross margin by 29 basis points, and said advertising, membership, marketplace, and fulfillment services together now represent roughly 1/3 of operating income.

Analysts focused on whether Walmart can sustain strong traffic, margin expansion, and marketplace momentum despite higher fuel prices and a tougher consumer backdrop. Management said lower-income consumers are more stretched, but higher-income shoppers remain resilient, and Walmart is leaning into price, rollbacks, and fast delivery to defend share. On margins, executives said U.S. eCommerce incremental margins were about 12% and that recurring revenue from advertising and membership helps offset fuel pressure. They also said marketplace and fulfillment services are still early but growing quickly, with U.S. marketplace sales up nearly 50% and same-day/next-day WFS units up nearly 150%.