Walmart Inc. Reports Robust Q1 Results for Fiscal Year 2027
American omnichannel retail giant Walmart Inc. has unveiled impressive results for the first quarter (Q1) of fiscal year 2027 (FY27), buoyed by substantial growth across multiple channels, including brick-and-mortar stores, e-commerce, advertising, and membership platforms.
The company continues to reap the rewards of enhanced delivery services, a diversified product assortment, and refined digital fulfillment across its global operations.
For the quarter concluding on April 30, total revenue reached $177.8 billion—a commendable year-on-year (YoY) increase of 7.3 percent.
Global e-commerce sales surged by 26 percent, propelled by store-fulfilled pickup and delivery options, alongside thriving marketplace activities. The gross profit margin also saw a marginal improvement of 6 basis points, primarily driven by Walmart US.
The impressive Q1 FY27 results are indicative of Walmart’s commitment to fostering growth through various sectors. Concurrently, operating income elevated by 5 percent. Notably, sales progressed for Walmart US, International, and Sam’s Club US.
“Our results reflect our continued focus on delivering across the enterprise—better shopping experiences, a broader assortment, and faster delivery,” stated John Furner, President and CEO of Walmart.
He emphasized the company’s strategic adoption of innovative technologies aimed at enhancing productivity through automation. Additionally, they are expanding higher-margin commerce solutions, a disciplined approach that underpins business growth and fortifies returns.
Operating income for the group climbed by $0.4 billion, or 5 percent, while adjusted operating income in constant currency rose by 5.1 percent. According to the press release, GAAP earnings per share (EPS) stood at $0.67, with adjusted EPS at $0.66.
Walmart US Experiences Growth Amidst Enhanced Transactions
Walmart US recorded a 4.5 percent YoY increase in net sales, reaching $117.2 billion in Q1 FY27, up from $112.2 billion in Q1 FY26. Comparable sales, excluding fuel, grew by 4.1 percent, supported by a 3 percent rise in transaction volume and a 1.1 percent uptick in average ticket size.
On an international scale, Walmart’s net sales escalated by 18 percent to $35.1 billion. International e-commerce sales surged by 27 percent, driven by efficient store-fulfilled pickup and delivery services.
The advertising segment also flourished, experiencing a 32 percent growth due to robust performance at Flipkart, while operating income rose by 23.9 percent to $1.6 billion.
In parallel, Sam’s Club US saw a 6.1 percent net sales increase to $23.4 billion. Excluding fuel, net sales increased by 3.9 percent to $20.5 billion, with comparable sales, also excluding fuel, rising by 3.9 percent.
Transaction volume surged by 6.2 percent, with e-commerce contributing approximately 400 basis points to these comparable sales.
It is important to note that heightened fuel costs in distribution and fulfillment adversely impacted operating income, contributing a 250 basis point decline.
Furthermore, global inventory expanded by 8.9 percent, or 7.8 percent in constant currency, reflecting the timing of receipts and robust unit demand in Walmart US grocery and fuel sectors, as stated in the release.
Unaltered FY27 Projections
For Q2 FY27, Walmart anticipates net sales to grow between 4-5 percent in constant currency, with adjusted operating income expected to increase by 7-10 percent and adjusted EPS projected within the range of $0.72-0.74.
The company has reiterated its FY27 outlook, forecasting a constant-currency net sales growth of 3.5-4.5 percent, adjusted operating income growth of 6-8 percent, and adjusted EPS of $2.75-2.85.
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