Walmart Inc. (WMT) announced fiscal results that exceeded expectations for 2025 first-quarter earnings and revenues. The retailer also issued a solid Q2 and an outlook for fiscal year 2025. Following the overwhelmingly positive results, the stock of Walmart ended Friday’s trading session at $64.65, up 1%, or $0.64, from the prior close. The company’s market cap surpassed $500 billion for the first time.
The company, headquartered in Bentonville, Arkansas, disclosed first-quarter revenues of $161.50 billion, an increase of 6% from $152.30 billion in a similar quarter of fiscal 2023.
Net sales rose by 5.90% to $159.94 billion. Membership and other income were $1.57 billion, up 21% from last year.
For the first quarter, which ended April 30, 2024, Walmart recorded net income of $5.10 billion, or $0.63 per share, up from $1.67 billion, or $0.21 per share, for the quarter ending April 30, 2023.
Excluding gains and losses, whether realized or unrealized, on equity and investments and business reorganization charges, among others, the company posted 1Q 2024 non-GAAP earnings of $0.60 per share, compared with $0.49 per share in 1Q 2023.
Analysts surveyed by LSEG expected Walmart to report earnings of $0.52 per share on revenues of $159.50 billion.
In discussing the quarterly results, Doug McMillon, serving as President and CEO, stated, “Walmart Our team delivered a great quarter. We’re people-led and tech-powered, and that combination is propelling our business.”
Segment wise:
- Walmart’s US revenues rose by 4.60% y-o-y to $108.67 billion.
- Revenues from Walmart’s international operations surged 12.10% y-o-y to $29.83 billion.
- Revenue from Sam’s Club was $21.44 billion, an increase of 4.60% from last year.
During the quarter, e-commerce sales jumped 22% year-on-year. Likewise, the advertising business (Walmart Connect) increased by 27% from last year.
Walmart U.S. and Sam’s Club Comp sales, with fuel, increased by 3.80% and 3.50%, respectively. Overall US same-store sales, with fuel, rose by 3.80% in 1Q25. Without fuel, Walmart US Comp sales grew by 3.80%, while Sam’s Club Comp sales rose by 4.40% in the same period. US same-store sales, without fuel, increased by 3.90% on a y-o-y basis.
Global inventory fell by 2.70% y-o-y in 1Q 2025. At Walmart US, inventory declined by 4.20%. Also, the consolidated gross margin grew by 42 basis points, mirroring improvements spanning all divisions.
Looking forward, Walmart projects Q2 net sales growth in the range of 3.50% to 4.50%. Additionally, the company forecasts Q2 adjusted earnings of between $0.62 and $0.65 per share.
Financial analysts on Wall Street anticipate earnings of $0.64 per share on revenues of $167.47 billion for Q2 2025.
Walmart also stated that it anticipates FY 2025 net sales growth of between 3% and 4%. The company additionally expects FY 2025 adjusted earnings in the range of $2.23 to $2.37 per share. Analysts surveyed by the Street anticipate Walmart to report FY 2025 earnings of $2.36 per share on revenue growth of 3.90%, which translates to $673.51 billion.
The earnings for the quarter surpassed expectations and robust Q2 and FY 2025 outlooks are expected to keep Walmart’s stock slightly bullish in the near term.
Technically, the stock of Walmart is ascending after consolidating at $59. The MACD indicator shows a favorable indication. Therefore, we anticipate Walmart’s stock to remain in an uptrend for the next few trading sessions.
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