Walmart, the American retail giant, has unveiled its financial results for the first quarter of fiscal year 2026 (FY26), showcasing a 2.5% year-over-year (YoY) revenue increase to $165.6 billion, or 4% growth in constant currency terms. Operating income experienced a 4.3% rise, with a 3% increase on an adjusted constant currency basis.
The gross margin rate improved by 12 basis points (bps), primarily driven by an increase of $0.3 billion, or 4.3%, in Walmart US operating income. Adjusted income also grew by 3% in constant currency, bolstered by higher gross margins, increased membership revenue, and improved e-commerce performance. Global e-commerce sales surged 22%, fueled by growth in store-fulfilled pickup, delivery services, and marketplace expansion.
Adjusted earnings per share (EPS) stood at $0.61, excluding a $0.05 net loss on equity and other investments. Meanwhile, GAAP EPS came in at $0.56, and adjusted EPS remained at $0.61. Walmart reported a return on assets (ROA) of 7.5% and a return on investment (ROI) of 15.3%, representing a 30-bps improvement. The company also secured $4 billion in long-term debt at favorable rates for general corporate purposes, according to its press release.
In the US, Q1 FY26 net sales reached $112.2 billion, up 3.2%, while operating income climbed to $5.7 billion, reflecting a 7% increase. Adjusted operating income similarly rose 4.4% YoY to $5.7 billion.
Walmart International reported net sales of $29.8 billion for Q1 FY26, remaining relatively flat with a slight decline of 0.3% compared to the previous year. However, in constant currency, international net sales increased by 7.8% YoY to $32.1 billion. International operating income declined by 17.5% to $1.3 billion, and by 6.4% in constant currency terms to $1.4 billion.
For the second quarter (Q2) of fiscal 2026, Walmart forecasts a 3.5% to 4.5% growth in net sales on a constant currency basis, based on Q2 FY25 net sales of $167.8 billion, which include a 20-bps favorable impact from the Vizio acquisition.
Looking at the full fiscal year 2026, Walmart reaffirmed its guidance issued in February 2025. The company projects net sales growth of 3-4% in constant currency, with adjusted operating income anticipated to grow by 3.5-5.5%, reflecting a 70-bps improvement. Additionally, net interest expenses are expected to rise by $100–200 million in FY26.