Walmart Q1 FY27 revenue $175.68B; global e‑commerce up 26% as company absorbs $175M fuel hit

Walmart posted Q1 FY27 revenue of $175.68 billion on May 23, up 6.08% from the prior year, as global e-commerce sales climbed 26% and advertising revenue rose 37% year-over-year. The retailer absorbed a $175 million hit from elevated fuel costs during the quarter, which ended April 30, according to its earnings release cited by analysts. • Walmart's Q1 revenue hit $175.68B on May 23, up 6% YoY, with e-commerce +26% and ads +37%. • Q2 guidance of $185.4B landed 0.5% below analyst estimates, per Yahoo Finance's May 23 review. • Next earnings call set for Aug. 17; shares dipped 1.2% in after-hours trading post-release. Global e-commerce fueled the top line, jumping 26% to an unspecified dollar volume, Walmart said in its filing. U.S. e-commerce specifically grew 24%, while international markets saw 32% gains, per 24/7 Wall St.'s breakdown of the results. Advertising revenue, a fast-growing segment, surged 37% to contribute more to overall margins. Walmart has leaned into this through its Walmart Connect platform, which now rivals Amazon's ad business in scale, analysts noted. Fuel costs dragged on operations by $175 million, tied to higher diesel and gasoline prices amid volatile energy markets. Walmart's massive trucking fleet—over 9,000 tractors—makes it sensitive to such swings; the company flagged this as a one-time pressure in its outlook. Yahoo Finance highlighted Q2 revenue guidance of $185.4 billion, which missed Wall Street's $186.3 billion consensus by 0.5%, signaling caution on consumer spending. Comparable sales rose 4.5% in the U.S., but grocery traffic softened as shoppers traded down to private labels. Gross margin contracted 22 basis points to 23.7%, pinched by markdowns and supply chain costs, per the 24/7 Wall St. report. Operating income fell 8% to $6.8 billion, reflecting those pressures. CEO Doug McMillon addressed a "stressed" consumer base on the earnings call, citing high gas prices and economic uncertainty as factors curbing discretionary buys. Former Walmart U.S. CEO Bill Simon, now an analyst, called the digital growth "impressive" but pointed to persistent strain from fuel and inflation in a Yahoo Finance interview. "Walmart is priced for perfection," Simon said, preferring Target stock for its upside. Walmart shares fell 1.2% in after-hours trading on May 23, closing the regular session at $98.45. The company reaffirmed full-year revenue growth of 3.5%-4.5% but trimmed EPS guidance to $2.47-$2.55 from prior estimates. Looking ahead, Walmart's Q2 results and Aug. 17 earnings call will test if e-commerce momentum offsets margin squeezes. Analysts watch for updates on tariff impacts, as CEO McMillon has warned of price hikes on imported goods.