Walmart (WMT) Q1 2025 Results

Walmart Thursday beat expectations for quarterly revenue and profit as the discounter made significant gains in e-commerce, generated profits with new businesses like advertising and won over more high-income shoppers.

The big-box retailer said it now expects to hit the high end of or slightly beat its previous full-year guidance. Walmart expected net sales growth of 3% to 4% and adjusted earnings per share of between $2.23 and $2.37.

In an interview with CNBC, CFO John David Rainey said one of the factors driving Walmart’s grocery business is the growing gap between the price of cooking at home and buying of food at the restaurant.

Plus, he added, shoppers — especially those with higher incomes — like the convenience Walmart offers. For the first time, its delivery business surpassed in-store pickup in terms of volume, Rainey said.

“We have customers coming to us more frequently than before and newer customers that we haven’t traditionally had, and they’re coming to a Walmart, whether it’s an online virtual store or a one of our physical stores,” he said.

Here’s what the discounter reported for the three months ended April 30, compared to Wall Street expectations, according to a survey of analysts by LSEG:

• Earnings per share: 60 cents adjusted against 52 cents expected
• Income: $161.51 billion versus $159.50 billion

Walmart’s net income jumped to $5.10 billion, or 63 cents per share, from $1.67 billion, or 21 cents per share, a year earlier.

Revenue increased 6% from $152.30 billion in the year-ago quarter. This increase includes a profit of approximately 1% from one additional day of sales in the period.

As the nation’s largest retailer and private employer, Walmart is often seen as a bellwether for the U.S. economy. Still, it generally fares better than other retailers during times of inflation because it sells essentials like groceries and enjoys a value-oriented reputation. This trend continued during the quarter, as the company

Walmart US same-store sales increased 3.8%, excluding fuel. The industry measure includes sales from stores and clubs open for at least a year. At Sam’s Club, same-store sales increased 4.4% year over year, excluding fuel.

E-commerce sales grew 22% year over year for Walmart US, fueled by in-store pickup and delivery of online orders, as well as the company’s growing third-party marketplace.

The company also expanded into high-margin businesses, such as advertising, striving to grow profits faster than sales.

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