Walmart reported 7.3% revenue growth and 26% e-commerce sales increase but held its full-year forecast steady, disappointing investors.
Walmart (NASDAQ: WMT) shares fell 7% to $120 after reporting first-quarter fiscal 2027 revenue of $177.8 billion, up 7.3% year over year. E-commerce sales surged 26%, and results exceeded guidance, yet the stock declined.
The company’s advertising business grew 37%, and membership income rose 27%, driven by Walmart+ sign-ups. However, operating income increased only 5%, below expectations for higher-margin segments to boost profitability.
Investors reacted negatively as Walmart maintained its full-year forecast rather than raising it, despite strong quarterly performance.