Walmart Expects Slower Growth In 'An Uncertain Time,' CFO Says On Earnings Call

Walmart, Inc. WMT shares dropped Thursday after the mega-retailer issued 2026 fiscal-year revenue and profit targets below analysts' expectations. Walmart CFO John David Rainey gave further insight into the company's outlook on a conference call with analysts following the print. 

The Details: Walmart expects fiscal 2026 revenue growth of 3% to 4%, below 2025's 5.1% increase, and earnings between $2.50 and $2.60 per share, below the $2.76 estimate.

Rainey pointed to a heightened degree of uncertainty contributing to the cautious outlook on the company's earnings call.  

"We have to acknowledge that we are in an uncertain time. And we don’t want to get out over our skis here. There’s a lot of the year to play out," Rainey said.  

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One of the uncertainties Walmart and its consumers face is the potential for new tariffs on top of those already implemented on goods imported from China and all imported aluminum and steel. President Donald Trump has also pushed for tariffs on goods from Mexico and Canada as well as reciprocal tariffs on countries that tax U.S. goods, but exact details on implementation remain unclear. 

Rainey told the Wall Street Journal that Walmart did not incorporate any potential tariff increases into its financial outlook, but that company is "going to work really hard to keep prices low."

"We are not immune to what is being suggested, but we'll work with suppliers," he said.

Another uncertainty Walmart and its consumers will navigate this year is stubbornly high inflation, especially in the cost of groceries. 

Rainey told analysts on the call that Walmart is seeing higher customer engagement across income brackets as consumers' wallets remain stretched amid rising costs. The company expects inflation of 1% to 2% in 2025. 

Walmart has attracted a broad customer base with its low prices and "rollbacks" on everyday items and even attributes the majority of its recent share gains to upper-income consumers.

“There will always be some anomalies like what we’re seeing right now with eggs as a result of avian flu last fall. Those things tend to work themselves out over time, so we don’t have a large inflation number planned into this year,” Rainey said.

WMT Price Action: According to Benzinga Pro, Walmart shares ended Thursday’s session down 6.53% at $97.21.

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