Walmart's Q1 Earnings: Revenue and EPS Beat, More Members And High-Income Households, Raised Outlook

Walmart Inc WMT shares are trading higher on Thursday after the company announced first-quarter 2025 results with strong growth in revenue and operating income.

The retailer reported that in the first quarter of 2025, the adjusted EPS was $0.60, beating the consensus of $0.52.

Sales were $161.51 billion, up 6.0% year over year or 5.8% (at constant currency), including a benefit of ~1% from an additional selling day, beating the consensus of $159.50 billion.

The gross margin rate was up 42bps due to improvements across segments, led by Walmart U.S.

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Operating income was up $0.6 billion, or 9.6%, and adjusted operating income was up 13.7% due to higher gross margins and growth in membership income.

Global eCommerce sales grew 21%, led by store-fulfilled pickup & delivery and marketplace.

Global advertising business grew 24%, including 26% for Walmart Connect in the U.S.

Same-store sales for Walmart U.S. climbed by 3.8%, excluding fuel, driven by growth in transactions and unit volumes. At Sam's Club, same-store sales rose 4.4% year over year, excluding fuel.

Higher-income households led to continued share gains.

Walmart generated an operating cash flow of $4.20 billion in the first quarter and used a free cash flow of $0.40 billion. It ended the quarter with cash and equivalents of $9.40 billion.

Guidance: Walmart Sees second quarter adjusted EPS of $0.62-$0.65 versus consensus of $0.64, with consolidated sales growth of 3.5%-4.5%

For the fiscal year 2025, the big box retailer expects adjusted EPS in the high end or slightly above the original guidance of $2.23-$2.37 versus the consensus of $2.36.

Walmart forecasts 2025 consolidated net sales (at constant currency) at the high end or slightly above original guidance, Increasing by 3.0%- 4.0%.

Price Action: WMT shares were up 5% at $62.82 during the premarket session at last check on Thursday.

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