Walmart Guidance Miss

CNBC reported Thursday that Walmart issued a worse-than-expected Walmart guidance for its full fiscal year. The warning rattled investors even as the retailer’s first-quarter revenue topped analyst estimates.

Guidance Falls Short on Both Fronts

Walmart maintained its fiscal 2027 full-year adjusted earnings-per-share target at $2.75 to $2.85. That range sat below the $2.91 Wall Street consensus compiled by LSEG. The retailer also forecast annual net sales growth of 3.5% to 4.5%.

For the current quarter, Walmart projected adjusted EPS of 72 to 74 cents, again missing analyst expectations of 75 cents. Quarterly net sales are anticipated to grow between 4% and 5%.

Shares fell roughly 2% in premarket trading following the release.

First-Quarter Results Were a Mixed Picture

Revenue for the three months ending April 30 climbed 7% year-over-year to $177.75 billion, clearing the $174.98 billion analyst estimate. Same-store sales rose 4.1%, landing in line with forecasts.

Net income for the period reached $5.33 billion, up from $4.49 billion a year earlier. Adjusted EPS of 66 cents matched expectations exactly, marking only the third time in 16 quarters that Walmart failed to beat its bottom-line estimate.

E-commerce continued to perform well, and higher-income households kept gravitating toward the chain’s value proposition.

Background: Tax Refunds Masked Underlying Pressure

Walmart finance chief John David Rainey told CNBC that elevated tax refunds likely cushioned the blow of surging fuel costs during the first quarter. He cautioned that this relief is fading fast. As refund season winds down, he said, shoppers will absorb more of the pain directly at the pump.

Rainey noted that higher fuel prices created a roughly $175 million headwind last quarter, with a potentially larger drag expected in the period ahead if prices hold. He said the company is absorbing those costs while maintaining guidance, describing its second-quarter operating income outlook as the strongest in approximately 15 years.

Rival Target made a similar observation Wednesday, suggesting tax refunds may have inflated first-quarter spending across the retail sector broadly.

Consumer Sentiment Stays Under Pressure

The guidance warning arrives against a deteriorating macro backdrop. Since Walmart last reported, a new Middle East conflict has emerged, pump prices have surged, and consumer sentiment has fallen to a record low. Walmart’s cautious tone suggests that even the most resilient mass-market retailer sees rougher months ahead for American households.

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