Walmart Beats Q1 Sales, Suffers $175M Fuel Hit as Shares Fall 7%
Walmart’s Q1 revenue reached $177.8 billion, topping the $174.84 billion estimate as U.S. comparable sales rose 4.1%, digital transactions climbed 3% and global e-commerce jumped 26%, but a $175 million fuel-cost burden and inflation warnings drove shares down 7% for the week. An analyst raised the price target to $133, implying 10% upside.
1. Q1 Earnings Exceed Expectations
Walmart reported first-quarter revenue of $177.8 billion, surpassing the $174.84 billion consensus, driven by a 4.1% increase in U.S. comparable sales and a 26% surge in global e-commerce revenue. Customer transactions rose 3%, marking the strongest quarterly transaction growth in six quarters.
2. $175M Fuel Cost Drag and Inflation Concerns
Executives revealed that higher fuel expenses added about $175 million to operating costs, and warned that sustained cost pressures could force higher retail price inflation in Q2 and the second half of the year. CFO John Rainey reaffirmed that Q1 operating income growth would be the lowest of the fiscal year, with profitability expected to improve thereafter.
3. Share Decline and Analyst Upgrade
Despite the earnings beat, Walmart’s shares fell 7% over the past week, the steepest weekly decline in three months. Analyst Georgy Vashchenko upgraded the stock to Hold and lifted his price target to $133, implying roughly 10% upside, while Walmart maintained its fiscal 2027 guidance unchanged.