Walmart Reports 2.5% Revenue Growth but Declines in Net Income for Q1 Fiscal 2026

Walmart Inc. reported its financial results for the first quarter of fiscal 2026, ending April 30, 2025, revealing total revenues of $165.6 billion, a 2.5% increase from $161.5 billion in the same period last year. The company's net sales rose to $164.0 billion, up from $159.9 billion, while membership and other income also saw a modest increase to $1.6 billion from $1.57 billion. However, consolidated net income decreased to $4.6 billion, or $0.56 per diluted share, compared to $5.3 billion, or $0.63 per diluted share, in the prior year, reflecting a decline in profitability.

The results indicate a shift in performance compared to the previous fiscal period, with net income down by 13.5% year-over-year. The decrease in net income was attributed to a significant drop in other gains and losses, which shifted from a gain of $794 million in the prior year to a loss of $597 million this quarter. Additionally, the effective income tax rate improved to 22.6% from 24.6%, which partially offset the decline in net income.

Operationally, Walmart's U.S. segment reported net sales of $112.2 billion, a 3.2% increase from the previous year, driven by strong sales in health and wellness and grocery categories. The Walmart International segment, however, experienced a slight decline in net sales to $29.8 billion, primarily due to unfavorable currency exchange rates. The Sam's Club U.S. segment also reported growth, with net sales increasing by 2.9% to $22.1 billion. The company noted that eCommerce sales contributed positively to comparable sales across all segments, highlighting the ongoing strength of its omnichannel strategy.

Walmart's total assets increased to $262.4 billion from $254.1 billion a year earlier, with cash and cash equivalents at $9.3 billion. The company also reported a working capital deficit of $22.7 billion, up from $18.9 billion, primarily due to timing of payments and an increase in long-term debt due within one year. The company continues to invest in its growth strategy, with capital expenditures reaching $5.0 billion, up from $4.7 billion in the prior year, focusing on supply chain improvements and technology enhancements.

Looking ahead, Walmart anticipates continued uncertainty in the global economy, influenced by factors such as inflation, supply chain pressures, and changing consumer behaviors. The company remains committed to its strategic priorities of growth, margin improvement, and returns, aiming to enhance its competitive position through investments in technology and an expanded omnichannel experience. Walmart's management expressed confidence in the company's ability to navigate these challenges while maintaining sufficient liquidity to support operations and shareholder returns.