Walmart Issues Weaker Outlook as High Fuel Prices Pressure Consumer Spending

Walmart issued a weaker-than-expected financial outlook as elevated fuel prices continued pressuring consumer spending patterns across the United States.

The retail giant reported fiscal first-quarter revenue that exceeded Wall Street expectations, though earnings came in largely in line with analyst forecasts. Walmart posted total revenue of $177.8 billion, up 7.3% year-over-year, while adjusted earnings per share reached $0.66.

Despite the stronger top-line performance, company executives warned that persistent energy costs could increasingly impact shoppers in the coming quarters.

Walmart Chief Financial Officer John David Rainey said larger tax refunds may have partially offset the impact of rising gasoline prices during the first quarter, suggesting consumer financial pressure could intensify moving forward.

The company noted that higher fuel costs negatively affected operating income by approximately 250 basis points, particularly across distribution and fulfillment operations.

Walmart maintained its full-year fiscal 2027 outlook while issuing second-quarter guidance that projects net sales growth between 4% and 5% in constant currency and adjusted earnings per share between $0.72 and $0.74.

The retailer also highlighted continued momentum in digital operations, with global eCommerce sales rising 26% during the quarter, supported by store-fulfilled delivery, pickup services, advertising, and marketplace growth.

Walmart U.S. comparable sales excluding fuel increased 4.1%, reflecting steady consumer demand despite mounting macroeconomic pressures.

The cautious outlook arrives as investors closely monitor the resilience of U.S. consumer spending amid elevated inflation, higher borrowing costs, and rising energy prices that continue affecting household budgets and retail demand trends.