Walmart nyse Wmt Stock Jumps on Q1 Earnings Beat Raises Fy2025 Guidance

Walmart (NYSE: WMT) Stock Jumps on Q1 Earnings Beat, Raises FY2025 Guidance

Walmart (NYSE: WMT) stock saw a marginal increase in early trading hours Friday after the retail giant reported better-than-expected Q1 sales and profits, driven by e-commerce and international sales growth. The company also raised guidance for the fiscal year 2025.

Walmart (WMT) recently released its first-quarter 2025 financial results showcasing significant revenue and operating income growth. The retailer reported an adjusted EPS of $0.60, which exceeded the consensus estimate of $0.52.

Sales for the quarter reached $161.51 billion, a 6.0% increase year-over-year (5.8% at constant currency), benefiting ~1% from an additional selling day. This figure beat the estimate of $159.50 billion.

The gross margin rate improved by 42 basis points, primarily due to improvements in various segments, led by Walmart U.S.

Operating income increased by $0.6 billion, or 9.6%, with adjusted operating income up 13.7%, driven by higher gross margins and growth in membership income.

Global eCommerce sales grew by 21% due to store-fulfilled pickup, delivery, and marketplace activities. 

Global advertising business saw a 24% growth, with Walmart Connect in the U.S. growing by 26%.

Same-store sales for Walmart U.S. rose by 3.8%, excluding fuel, driven by growth in transactions and unit volumes, while Sam’s Club saw a 4.4% year-over-year increase in same-store sales, excluding fuel. Higher-income households contributed to Walmart’s continued market share gains.

The company generated $4.20 billion in operating cash flow in the first quarter and used $0.40 billion in free cash flow, ending the quarter with $9.40 billion in cash and equivalents.

Q2 and FY2025 Guidance

For the second quarter, Walmart expects adjusted EPS between $0.62 and $0.65, with consolidated sales growth of 3.5% to 4.5%.

For the fiscal year 2025, the big box retailer forecasts adjusted EPS at the high end or slightly above the original guidance of $2.23 to $2.37, with consolidated net sales growth (at constant currency) expected to be between 3.0% and 4.0%.

Walmart (NYSE: WMT) Stock Price Action

As of 10:08 a.m. (Eastern Time) Friday, WMT stock traded at $64.45, marking a 0.69% increase compared to the previous trading session.