Walmart Shares Drop 7% After Q1 Revenue Beat as Fuel Costs Dent Profit

Walmart reported Q1 FY2027 results for the period ended April 30 2026. Revenue increased 7.3% year‑over‑year to $177.8 billion, topping the company’s own guidance. E‑commerce sales jumped 26%, advertising revenue rose 37%, and membership income grew 27%. Adjusted earnings per share climbed approximately 8% on a non‑GAAP basis.

The revenue beat was offset by $175 million in higher‑than‑expected fuel expenses across Walmart’s global distribution and fulfillment network. Rainey said this expense reduced operating‑income growth by roughly 250 basis points—equivalent to 2.5 percentage points. Without the fuel hit, operating income would have grown faster than sales, aligning with the retailer’s strategy to boost higher‑margin businesses.

Investors reacted to the profit drag and to Walmart’s decision to keep its full‑year outlook unchanged, signaling caution about consumer spending, especially among lower‑income shoppers. The stock’s price‑to‑earnings ratio remains high at about 42, leaving little room for disappointment. Market participants will watch for any revision to the full‑year forecast and for trends in fuel prices and low‑end consumer behavior.