Walmart Inc. (WMT Quick QuoteWMT - Free Report) used its first-quarter fiscal 2027 earnings call to reinforce a familiar message —the business is gaining share, but management is navigating a tougher cost backdrop led by fuel.

The quarter mattered because executives paired solid top-line momentum with unchanged full-year guidance, even as they acknowledged higher transportation costs, consumer stress at the low end and a more inflationary setup for the months ahead.

WMT Keeps Traffic and Digital Momentum

Adjusted EPS came in at $0.66, topping the Zacks Consensus Estimate of $0.65 by 1.54%. Revenue of $177.8 billion beat the Zacks Consensus Estimate of $174.6 billion by 1.83%, giving management a solid financial backdrop for its strategic commentary.

President and CEO John Furner said customers continued to prioritize value, assortment and convenience, while CFO John Rainey said constant-currency sales growth of nearly 6% finished 120 basis points above the top end of guidance. Consolidated revenue rose 7.3%, with global eCommerce up 26%.

Management highlighted transaction growth as a key signal. Walmart U.S. comp sales excluding fuel rose 4.1%, with transactions up 3%, while Sam’s Club U.S. comp sales excluding fuel increased 3.9% with transactions up 6.2%.

Walmart Inc. Price, Consensus and EPS Surprise

Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote

Walmart Presses Its Commerce Solutions Push

Furner spent much of the call on the company’s higher-margin engines, especially marketplace, advertising, membership and fulfillment services. He said those businesses are expanding across markets and helping Walmart scale growth without proportional capital intensity.

Marketplace was a standout. Furner said U.S. marketplace sales grew almost 50%, while Rainey said those, along with advertising and fulfillment services, delivered their best quarter since he joined the company. Global advertising revenue rose 37%, including 36% growth in Walmart U.S.

Membership also remained central to the thesis. Rainey said membership fee revenue rose more than 17% companywide, with Walmart+ net adds reaching a record first-quarter high. He added that membership and advertising now account for roughly one-third of earnings, a notable shift in the profit mix.

WMT Absorbs Fuel Costs But Holds Outlook

The clearest pressure point was fuel. Rainey said higher-than-planned fuel costs in distribution and fulfillment reduced operating income growth by about $175 million, or roughly 250 basis points. That issue weighed on first-quarter profitability even as adjusted operating income in constant currency rose about 5%.

Even so, Walmart issued second-quarter guidance for constant-currency net sales growth of 4% to 5%, operating income growth of 7% to 10% and adjusted EPS of $0.72 to $0.74. It also reiterated fiscal 2027 guidance for constant-currency sales growth of 3.5% to 4.5%, adjusted operating income growth of 6% to 8% and adjusted EPS of $2.75 to $2.85.

Rainey said the unchanged full-year view was intentional. Management continues to invest in price and share gains rather than pull back to offset near-term cost inflation.

Walmart Q&A Focuses on Margins and Mix

Analysts pushed management on incremental margins, the durability of operating income growth and whether repeated external shocks are delaying Walmart’s longer-term earnings algorithm. Rainey responded that the company still sees a multiyear path where operating income grows faster than sales, and he pointed to U.S. eCommerce incremental margins of about 12% in the quarter.

Analysts also zeroed in on gross margin drivers. Rainey said merchandise mix helped Walmart U.S. gross margin for the first time in 18 quarters, supported by stronger general merchandise performance, especially fashion and beauty. He tied that progress to better assortment and marketplace expansion.

On international expansion, executives said advertising, membership and marketplace are still small in those markets, but they are growing quickly. That framed the company’s “build once, scale globally” model as a medium-term margin lever rather than a near-term earnings event.

WMT Sees a Split Consumer Backdrop

Rainey described a bifurcated consumer environment. He said higher-income customers are still spending across categories, while lower-income shoppers are more budget-conscious and showing signs of financial strain. He pointed to smaller fuel fill-ups as one indicator of pressure.

Management also said inflation could move higher if fuel prices remain elevated. Rainey noted first-quarter like-for-like inflation was a little above 1%, but he warned that fuel and the fading effect of egg deflation could push pricing pressure higher later in the year.

That backdrop helps explain Walmart’s pricing posture. Furner said the company now has about 7,200 rollbacks in place and intends to keep leaning into everyday low price to defend share and reinforce trust.

Walmart Stays on the Same Strategic Path

The call’s overall tone was confident but disciplined. Furner repeatedly returned to speed, assortment expansion, automation and AI, while Rainey emphasized that the business can absorb short-term volatility without changing its long-term framework.

Coming out of the quarter, Walmart’s priorities remained clear —protect value, grow higher-margin revenue streams, improve eCommerce economics and keep operating income growth ahead of sales over time. The pressure from fuel costs did not alter that playbook.

WMT’s Zacks Rank and Style Scores

WMT carries a Zacks Rank #3 (Hold), along with a Value Score of D, Growth Score of A, Momentum Score of B and VGM Score of B. Under the Zacks framework, a Rank #3 indicates a more neutral near-term earnings revision profile than a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy), while the A and B style grades point to stronger growth and momentum characteristics than value characteristics. You can see the complete list of today’s Zacks #1 Rank stocks here.

The VGM Score of B is constructive because it combines value, growth and momentum factors into one measure, but the Zacks framework places primary emphasis on the earnings revision trend embedded in the rank itself. That means WMT’s current standing should be viewed as balanced rather than decisive, and the Zacks Rank can change as estimate revisions adjust after the latest results.