Walmart expected to post 8% first fiscal quarter net income gain – Image for illustrative purposes only (Image credits: Unsplash)
Bentonville-based retailer Walmart is preparing to release its first-quarter results for fiscal 2027, with analysts projecting net income growth that outpaces revenue gains. The period ending April 30 marks the initial earnings report under new CEO John Furner, who assumed the role on February 1. Expectations point to continued strength in grocery sales and e-commerce, even as higher energy prices and shifting trade policies create uncertainty for consumer spending.
Projected Financial Performance
Analysts forecast adjusted earnings per share of 66 cents for the quarter, an increase of 8.19 percent from 61 cents a year earlier. Net income is expected to reach approximately 7.97 billion dollars, though the figure may be adjusted after the company eliminated about 1,000 positions in its global technology division.
Revenue is projected to surpass 174.8 billion dollars, reflecting more than 6 percent growth year over year. Global e-commerce sales are anticipated to rise 24 percent, supported by expansion of the marketplace platform that connects third-party sellers with customers.
Consumer Trends and Segment Outlook
Same-store sales are forecast to increase between 3.5 percent and 4.5 percent, driven mainly by steady grocery demand and higher-income shoppers shifting toward value options. Walmart serves roughly 90 percent of U.S. households with grocery purchases, giving the results added weight as a snapshot of spending patterns across income levels.
Walmart International and Sam’s Club are each expected to post single-digit gains in operating income that slightly exceed revenue growth. Both segments operate under new management this fiscal year, adding another layer of interest for observers tracking performance stability.
Cost Pressures and Offsetting Strengths
Rising gasoline prices, which have climbed 50 percent in recent months, represent a notable concern because they affect food and grocery categories that account for about two-thirds of U.S. sales. Morgan Stanley analysts have estimated that elevated diesel costs could create a 1 billion dollar annualized headwind for the company, given its large private trucking fleet.
Global advertising sales are projected to grow 30 percent, while membership revenue continues its double-digit expansion from prior quarters. These higher-margin areas are viewed as buffers against any margin pressure in core retail operations. Barclays analysts have noted that both advertising and membership income should help cushion the impact of weaker discretionary purchases.
Market Reaction and Analyst Perspectives
Walmart shares have risen more than 19.6 percent year to date and closed at 133.34 dollars on May 18, up 1.89 dollars. Bank of America recently increased its one-year price target to 150 dollars, compared with 132 dollars from Barclays and 137 dollars from Wolfe Research. The stock has traded between 93.43 dollars and 134.69 dollars over the past 52 weeks.
Bank of America analysts have pointed out that more consumers may trade down to Walmart and similar value retailers as fuel costs rise. The company’s own role as a gasoline retailer is also expected to provide some offset to broader margin challenges.
Key expectations for the quarter:
- Adjusted EPS of 66 cents, up 8.19 percent
- Revenue above 174.8 billion dollars, up more than 6 percent
- E-commerce sales growth of 24 percent
- Same-store sales increase of 3.5 to 4.5 percent
- Global ad sales growth of 30 percent
Full-year guidance is not expected to change, given ongoing macroeconomic factors. The upcoming report will provide fresh details on how tariff effects and consumer behavior are evolving in the current environment.
