Walmart shares slipped Friday as investors reacted to the retail giant's first-quarter results, which topped revenue expectations but came with cautious guidance that fell short of Wall Street forecasts. The stock was down 1.46 percent at $119.57 in afternoon trading, according to Benzinga Pro data. Despite a solid performance in the quarter ended April 30, management warned of ongoing macroeconomic pressures that could push prices higher in coming months.
The company reported revenue of $177.8 billion for the quarter, a 7.3 percent increase from a year earlier and ahead of the $175 billion consensus estimate. Adjusted earnings per share came in at 65 cents, though the focus quickly shifted to the outlook for the second quarter and full year. Walmart projected adjusted earnings between 72 cents and 74 cents per share for the current quarter, below the 75 cents analysts had expected.
Revenue guidance for the second quarter was set between $182.8 billion and $184.6 billion, missing the $186.4 billion Wall Street consensus. For the full fiscal year, Walmart reaffirmed its earlier targets of adjusted earnings between $2.75 and $2.85 per share and revenue of $731.1 billion to $738.2 billion. Those figures also trailed analyst projections of $2.94 per share and $742.6 billion in sales.
During the company's Thursday morning conference call, Chief Financial Officer John David Rainey highlighted persistent cost pressures. "If the current elevated cost environment persists, the company expects somewhat higher retail price inflation in the second quarter and the second half of the year," Rainey said. The comments underscored concerns that higher input costs could continue to affect both operations and consumer spending.
Still, the quarter showed strength in several key areas. Walmart U.S. e-commerce sales jumped 26 percent, fueled by a 45 percent rise in store-fulfilled delivery and 50 percent growth in its Marketplace segment. Those gains helped offset a 100-basis-point headwind to U.S. revenue growth stemming from pharmacy pricing changes.
The muted outlook overshadowed what was otherwise a robust operational quarter, according to the report. Walmart has maintained its longer-term fiscal 2027 guidance, but the near-term projections left investors focused on potential margin pressure and slower growth. The stock has fallen below several key moving averages in recent sessions, trading 8.1 percent below its 20-day simple moving average and 5.9 percent below its 50-day average.
Despite the pullback, Walmart remains up 24.63 percent over the past 12 months. It continues to hold above its 200-day simple moving average by 4.2 percent, keeping the longer-term trend intact even as shorter-term momentum has softened. Analysts noted that the moving-average structure remains broadly bullish, with the 20-day above the 50-day and the 50-day above the 200-day.
Market participants appeared to be waiting for clearer signs of sustained momentum before pushing the shares higher. The technical setup suggests the stock is testing support levels after a strong run, with price action now below the 20- and 50-day cluster. Investors will likely watch upcoming economic data and any updates on consumer spending patterns for further clues.
Walmart's results come amid broader retail sector scrutiny over inflation and consumer resilience. The company's emphasis on e-commerce growth and marketplace expansion shows continued investment in digital channels, even as traditional store sales face pricing headwinds. Officials have not indicated any immediate changes to capital spending plans tied to the revised outlook.
Looking ahead, the company is scheduled to report second-quarter results in August. Analysts will be monitoring whether the cautious tone on pricing and costs persists or if improving trends allow for more optimistic projections. For now, the market appears to be digesting the gap between strong current results and tempered future expectations.