Walmart reported first-quarter 2026 revenue of $176.2 billion, a 6 percent increase from the same period in 2025, as the world’s largest retailer continued to benefit from strong US consumer spending on groceries and everyday essentials while posting accelerating growth in its higher-margin e-commerce, advertising and marketplace businesses. Adjusted earnings per share of $0.71 beat analyst consensus estimates of $0.67, and the company raised its full-year guidance, projecting net sales growth of 4 to 5 percent and operating income growth of 6.5 to 8.5 percent for fiscal year 2027.

E-Commerce Up 28 Percent: The Store-as-Warehouse Advantage

US e-commerce comparable sales grew 28 percent year-over-year in the quarter, extending the strong momentum the company has sustained since overhauling its digital commerce infrastructure and same-day delivery capability in 2024. The growth was driven by pickup and delivery orders from Walmart’s store network, which now serves as a fulfillment hub for online orders across more than 4,600 US locations, and by continued expansion of Walmart Plus membership, which crossed 30 million subscribers in the quarter. CNBC noted that Walmart’s store-as-warehouse fulfillment model, which leverages the company’s unmatched physical proximity to US households – 90 percent of Americans live within 10 miles of a Walmart store – continues to be a structural advantage over pure-play e-commerce competitors in same-day and next-day delivery.

Walmart Connect Advertising Grows 34 Percent

Walmart’s advertising business, which operates under the Walmart Connect brand and sells targeted digital advertising to brands selling on Walmart.com and in Walmart stores, grew 34 percent year-over-year in the quarter to reach approximately $1.4 billion in revenue. Bloomberg reported that the advertising business is now generating annualized revenue at a rate that places it among the top 10 digital advertising platforms in the United States, and that its operating margins are significantly higher than Walmart’s core retail business. The company’s third-party marketplace, which now lists more than 700 million items from third-party sellers, grew gross merchandise value by 31 percent, driven by expansion in categories including home furnishings, apparel and electronics where Walmart has historically been weaker than Amazon.

International Results and Flipkart’s 22 Percent Growth

International operations contributed $30.1 billion in revenue, with particularly strong results from Flipkart, Walmart’s Indian e-commerce subsidiary, which posted 22 percent revenue growth as consumer spending in India’s rapidly expanding middle class continues to accelerate. Sam’s Club, Walmart’s membership warehouse chain, grew comparable sales by 5.8 percent excluding fuel, with membership income growing 7 percent to reach a record level as the company added new member benefits including expanded healthcare services and an enhanced travel and experiences program. Reuters reported that Sam’s Club’s membership model is increasingly viewed by Walmart management as a template for loyalty and recurring revenue that the company is studying for potential adaptation to the core Walmart brand.

Tariff Pressure and the Everyday Low Price Commitment

Walmart CFO John David Rainey noted that the company is seeing ‘modest but real’ cost pressure from tariffs on goods manufactured in China and other countries subject to new trade measures, and said the company has been working with suppliers to offset tariff impacts through cost efficiencies and sourcing diversification. Rainey said Walmart expects to absorb some portion of tariff-related cost increases in its own margins rather than pass all costs through to consumers, reflecting a deliberate strategy to use the company’s scale and efficiency to maintain price competitiveness in its core everyday low price positioning.