Walmart reports rise in Q1 sales, but Q2 guidance disappoints

(Sharecast News) - Shares in Walmart slipped in pre-market trade on Thursday after the retail giant posted a rise in first-quarter sales and profits but issued softer-than-expected guidance for the current quarter.

In its FY2027 first-quarter earnings release, Walmart reported revenue of $177.8bn, up 5.9% year-on-year in constant currency terms.

Net income rose nearly 19% to $5.33bn, with growth driven by stronger e-commerce activity, advertising and membership income, while adjusted earnings per share came in at 66cents, in line with market expectations.

Comparable sales at Walmart US increased 4.1% from the same period a year earlier, while global e-commerce sales jumped 26%.

The company said higher fuel and raw material costs weighed on margins during the quarter, although gains in higher-margin advertising and marketplace businesses helped offset some of the pressure.

Chief executive John Furner said the retailer continued to focus on value for shoppers amid persistent inflationary pressures, highlighting "extended price rollbacks" to support customers seeking lower prices.

Looking ahead, Walmart reaffirmed its full-year guidance for fiscal 2027, forecasting annual sales growth of between 3.5% and 4.5%, albeit at the upper end of the range, and adjusted earnings per share of $2.75 to $2.85.

However, second-quarter profit guidance of 72 to 74cents a share came in slightly below Wall Street forecasts, causing stock futures to slide 4.2% to $125.40.