Walmart issued a weaker-than-expected earnings outlook on May 21 as surging gasoline prices linked to the Iran war strain U.S. consumer budgets, even as the retailer reported solid first-quarter revenue growth.
Revenue rose 7.3 percent to 177.8 billion dollars for the quarter ended April 30, beating analyst estimates. Adjusted earnings of 66 cents per share matched expectations. However, full-year adjusted earnings guidance of 2.75 to 2.85 dollars per share fell below the 2.91-dollar consensus, and second-quarter guidance of 72 to 74 cents also missed forecasts.
Chief Financial Officer John David Rainey said higher fuel costs reduced operating income by about 175 million dollars during the quarter. If elevated energy prices persist, Walmart expects somewhat higher retail price inflation in the second quarter and the second half of the fiscal year.
Regular gasoline averaged 4.56 dollars per gallon nationwide, up sharply from pre-war levels, while diesel exceeded 5.66 dollars. U.S. consumer inflation reached 3.8 percent in April, outpacing wage growth for the first time since 2023. Rainey noted that gallons per fill-up at Walmart fuel stations fell below 10 for the first time since 2022, signaling consumer stress.
Walmart U.S. comparable sales rose 4.1 percent excluding fuel in the quarter. Global e-commerce revenue grew 26 percent across segments. Chief Executive Doug McMillon said the company gained traffic share even as consumers showed signs of budget strain from higher pump prices and the end of elevated tax refund season.
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Sources:
https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-may-21-2026