How did Walmart (NASDAQ:WMT) perform in the first quarter of 2026?

Walmart reported total revenue of $177.8 billion, up 7.3% year-over-year (5.9% constant-currency), surpassing expectations. Growth was driven by strong gains in store-fulfilled delivery, digital marketplace expansion, and its high-margin corporate advertising business.

What were the key drivers of Walmart’s digital and alternative revenue growth?

Global e-commerce sales rose 26% year-over-year, fueled by store-fulfilled pickup and delivery services, as well as third-party marketplace gains. Additionally, Walmart’s global advertising business surged 37%, led by a 36% increase in Walmart U.S. advertising revenue.

How did profitability metrics trend for Walmart in Q1 2026?

Gross profit margin improved by 6 basis points, largely due to performance gains in Walmart U.S. Consolidated operating income increased by $400 million, a 5% rise (5.1% constant-currency adjusted). Adjusted diluted EPS came in at $0.66, excluding certain gains and reorganization costs.

How did Walmart’s membership and subscription revenue perform?

Recurring global membership fee revenue expanded 17.4% for the quarter, reflecting continued consumer engagement and strength in subscription-based services.

What operational challenges did Walmart face in Q1?

The company experienced persistent volume and inventory pressures in core grocery and fuel segments. Global inventory rose 8.9% on a reported basis (7.8% constant-currency), reflecting higher supply-chain volumes.

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Walmart revenue climbs 7.3% to $177.8B as digital and ad units surge

Written by Heidi Cuthbert Published May. 21 2026Last Updated May. 21 2026

Walmart (NASDAQ:WMT) reported first-quarter financial results that outpaced expectations, driven by significant gains in store-fulfilled delivery, digital marketplace expansion, and its high-margin corporate advertising business.

The Bentonville, Arkansas-based retail giant announced that total revenue rose 7.3% to $177.8 million, or 5.9% on a constant-currency basis, up from the prior year's first quarter.

The double-digit expansion in alternative revenue streams continues to reshape the company's operating margin profile, helping offset persistent volume and inventory pressures in core grocery and fuel segments.

Global e-commerce sales led the digital momentum with 26% growth, a metric heavily propelled by store-fulfilled pickup and delivery services alongside third-party marketplace gains.

Concurrently, Walmart's global advertising business surged 37% year-over-year.

The retailer's domestic media division, Walmart U.S. advertising, paced the unit's expansion with a 36% jump.

Profitability metrics trended positively as the company’s gross profit rate ticked up 6 basis points, led primarily by performance improvements within Walmart U.S.

Consolidated operating income grew by $400 million, representing a 5% increase, or 5.1% when adjusted for constant-currency fluctuations.

Walmart reported adjusted diluted earnings per share of $0.66.

The figure excludes a net gain of $0.02 from equity and other corporate investments, as well as a $0.01 impact stemming from ongoing business reorganization charges.

Recurring subscription strength was also evident, with global membership fee revenue expanding 17.4% for the quarter.

Corporate balance sheet metrics reflected heavier supply-chain volume, with global inventory rising 8.9% on a reported basis and 7.8% in constant currency.

On the financing front, the company capitalized on market liquidity by raising $4.25 billion in long-term debt at favorable rates, earmarked for general corporate purposes.