Walmart reported Q1 fiscal 2027 revenue of $177.8 billion. This 7.3% increase exceeded Wall Street estimates.
The retailer issued weaker-than-expected earnings guidance for the second quarter and full year. Management cited persistent fuel cost pressures and inflation as primary strains on household budgets.
CFO John David Rainey announced plans to use a potential $2.4 billion Supreme Court-mandated tariff refund. Walmart will prioritize these funds for aggressive store price cuts to counter cautious consumer spending.
Walmart shares fell 7.6% following the cautious outlook. The decline triggered a broader sell-off for retail peers including Costco, Target, and Casey’s General Stores.