Walmart reports 3.4% grocery growth, reflecting a challenging consumer environment

Walmart released its fiscal 2026 annual report on April 27, 2026.

U.S. grocery sales growth slowed to 3.4% for the fiscal year ending January 31. This figure marks a deceleration from the 4% growth seen in the prior year. It also sits significantly below the 11% growth recorded two years ago. The grocery segment accounts for 59% of the retailer's total U.S. net sales.

Executives cited a challenging environment for consumers as a primary driver of the slowdown. However, U.S. e-commerce sales increased by nearly 23% year-over-year.

Walmart continues to invest in store remodels and artificial intelligence to improve productivity. These results provide a benchmark for investors monitoring consumer staples ETFs.