MercadoLibre and Walmart report robust revenue growth but face stock declines amid macroeconomic pressures and heavy investments.
MercadoLibre and Walmart shares have underperformed in 2026 despite strong financial results. Walmart’s Q1 fiscal 2027 revenue rose over 7% year over year, with advertising and e-commerce growth of 37% and 26%, respectively. However, negative free cash flow of $1.9 billion reflects ongoing automation investments.
MercadoLibre’s Q1 fiscal 2026 revenue surged 49% year over year, though operating margins contracted due to logistics spending. The company’s fintech arm, Mercado Pago, saw its credit portfolio expand 87% to $14.6 billion, while assets under management grew 77% to $20 billion.
Both companies cite inflation and tariffs as headwinds, with heavy reinvestment weighing on short-term performance despite long-term growth potential.