Total Revenue

+2.5% (from $161.508M to $165.609M)

Total Revenue grew modestly driven primarily by a strong performance in the U.S. segment—which increased by about 3%—offset by nearly flat international revenue; this mix of strong domestic sales and stable overseas performance helped lift the overall figure. " "

Walmart U.S. Revenue

+3% (from $108.670M to $112.163M)

Growth in the U.S. segment is linked to increased in-store transactions and eCommerce improvements, building on previous periods’ momentum to drive a noticeable 3% rise in revenue. " "

Walmart International Revenue

–0.3% (from $29.833M to $29.754M)

The slight decline suggests that while individual international markets may have had mixed results, challenges such as currency fluctuations and market dynamics balanced out growth, resulting in an almost flat outcome compared to the previous quarter. " "

Sam’s Club Revenue

+2.9% (from $21.435M to $22.064M)

The increase was driven by stronger comparable sales bolstered by rising eCommerce contributions and enhanced membership income, consistent with trends seen in prior months. " "

Operating Income

+4% (from $6.841M to $7.135M)

Operating efficiency improvements and a positive mix in higher-margin operations led to a 4% increase in operating income, reflecting better cost management and sales performance relative to the previous period. " "

Consolidated Net Income

–12% (from $5.307M to $4.639M)

Despite higher revenues and operating income, a significant 12% decline in consolidated net income indicates that non-operating factors—such as higher financing costs, adverse one-off items or currency impacts—deteriorated overall bottom-line profitability compared to Q1 FY25. " "

Basic Net Income per Common Share

From $0.63 down to $0.56

The decrease in basic EPS mirrors the overall net income contraction; with the share count remaining relatively static, the decline in profitability led directly to reduced earnings per share. " "

Dividends Declared per Common Share

+13% (from $0.83 to $0.94)

Management’s commitment to shareholder returns is evident in the 13% increase in dividends per common share, which was supported by strong operating cash flows and a strategic decision to maintain an upward dividend trend despite lower net income. " "

Sales Growth

FY 2026

3% to 4% "

Approximately 4% " " " "

no change

Operating Income Growth

FY 2026

3.5% to 5.5% "

Aims to grow faster than sales " " " "

non-comparable

Adjusted EPS

FY 2026

$2.50 to $2.60 "

No specific figure provided " " " "

non-comparable

CapEx

FY 2026

3% to 3.5% of sales "

3% to 3.5% of sales " " " "

no change

Sales Growth

Q2 2026

no prior guidance

3.5% to 4.5% on a constant currency basis " " " "

no prior guidance

Operating Income

Q2 2026

no prior guidance

No specific range provided " " " "

no prior guidance

E-commerce Profitability

Q2–Q4 2025 discussions focused on gradual improvements in margins, operational efficiencies, and long‐term investments that were narrowing losses and boosting incremental margins ( " " " " " ).

Q1 2026 achieved a milestone by realizing global eCommerce profitability for the first time, driven by factors like delivery densification, cost reductions, and a favorable business mix ( " " " ).

Persistent progress leading to a milestone achievement.

Membership Growth and Revenue Diversification

Across Q2–Q4 2025, Walmart consistently showcased strong membership growth in Walmart Plus and Sam’s Club, along with significant contributions of alternative high‐margin revenue streams such as advertising and diversified income from both domestic and international markets ( " " " ).

Q1 2026 maintained robust membership fee income growth (nearly 15% enterprise-wide) with enhanced digital engagement and further diversification from advertising, reinforcing its multi-revenue strategy ( " " ).

Continued robust growth with increasing digital engagement and revenue diversification.

Digital Advertising and Digital Revenue Expansion

In Q2–Q4 2025, the focus was on steady growth in digital advertising and eCommerce sales—figures such as 26%–50% growth were noted, along with strong participation from marketplace sellers and early-stage partnerships like VIZIO in Q4 ( " " " ).

Q1 2026 reported significant ad business expansion (50% growth) and strong eCommerce sales performance (21-22% growth), reaffirming the digital revenue strategy as a key component of profitability ( " " " ).

Accelerating digital revenue growth and strong momentum.

Tariff Risks and Operational Agility in Sourcing

Q4 2025 acknowledged tariffs as a long-term factor managed historically with operational flexibility; Q2 and Q3 had minimal emphasis on this topic ( " ).

Q1 2026 went into detail about the cost pressures caused by tariffs—highlighting modeling scenarios, impacts on categories like electronics and food, and describing active sourcing agility through diversified supply chains and inventory management ( " " ).

Increased focus on mitigating rising tariff-induced cost pressures.

Inventory Management Challenges and Accounting Volatility

Q2 and Q3 2025 emphasized effective inventory management with mix improvements and lower markdowns, while Q4 2025 focused on technological enhancements with minimal mentions of accounting volatility ( " " " ).

Q1 2026 described challenges in forecasting inventory amid a dynamic tariff environment, citing difficulties with seasonal planning, fluctuating tariff costs, and retail accounting practices that cause quarter‐to‐quarter volatility ( " " " ).

Emerging concerns over inventory volatility amid tariff fluctuations.

Operating Margin Pressures and Merchandise Mix Dynamics

In Q2–Q4 2025, Walmart reported improved gross margins driven by cost efficiencies, but also noted challenges from mix pressure—including impacts from hurricanes (Q3) and shifts toward lower-margin categories—in addition to healthy investments in technology and pricing discipline ( " " " " " " ).

Q1 2026 reported mixed performance with U.S. gross margin gains (improved by 25 basis points) being partly offset by lower international results and higher tariff/mix pressures on certain merchandise categories, all managed through disciplined pricing and cost controls ( " " ).

Ongoing margin pressures that are being actively managed through operational adjustments despite external challenges.

Economic, Geopolitical, and Consumer Demand Uncertainty

Q2 2025 addressed uncertainty with cautious outlooks amid an unpredictable economic and geopolitical backdrop, while Q4 2025 acknowledged these uncertainties but noted stable consumer behavior ( " " " " " ).

Q1 2026 did not explicitly discuss these uncertainties but indirectly referenced them via tariff impacts and concerns over demand elasticity, hinting that the underlying uncertainty remains while consumer demand stays resilient ( " " " ).

Uncertainty remains a backdrop; while geopolitical risks persist, consumer demand appears resilient.

External Disruption Risks

Q3 2025 had significant mentions of external disruptions – major hurricanes created store/warehouse closures and a port strike was noted, causing measurable impacts on operating income ( " " ). Q2 and Q4 2025 did not emphasize such risks.

Q1 2026 reported stable supply chain conditions with active port flows and no major concerns over disruptions, indicating a more favorable external environment compared to Q3 ( " ).

Reduced emphasis on external disruptions following the impactful events in Q3 2025.

Automation and Supply Chain Efficiency Initiatives

Q2–Q4 2025 consistently highlighted substantial progress with automation—over 50% automation in fulfillment centers, improved inventory visibility, and ongoing investments in technology yielding cost efficiencies and enhanced service ( " " " " ).

Q1 2026 reaffirmed continued investments in automation and supply chain efficiency, with mentions of strategic CapEx allocation and enhanced tools for inventory management to support flexible delivery and cost reduction ( " " " ).

Consistent strategic focus on automation with steady progress and ongoing investments in efficiency.

Capital Allocation Strategies

Q4 2025 featured a major dividend increase (13%) and plans for increased share buybacks, emphasizing a balanced approach to returning cash to shareholders; Q2 and Q3 did not provide details on capital returns ( " " " ).

Q1 2026 underlined an aggressive share buyback program ($4.6 billion repurchased in Q1, with expectations to exceed last year's levels) alongside continued dividend discipline, reflecting a strong commitment to shareholder returns ( " " ).

Sustained shareholder-friendly capital allocation with increasing buyback activity.

GLP-1 Drug Sales Impact on Gross Profit Mix

Q2 2025 discussed careful management of product mix with GLP-1 drugs contributing to sales but bringing mix pressures; Q3 2025 noted a roughly 1-point comp contribution along with mix pressure; Q4 2025 mentioned minimal impact on comp growth ( " " " ).

Q1 2026 did not specifically mention GLP-1 drug sales, suggesting a reduced focus on this factor in the current narrative ( " ).

Diminished emphasis on GLP-1 impact compared to previous periods.