WMT stock dips as investors weigh strong digital growth against negative $1.9B free cash flow and inventory build.
Walmart shares fell 10% from their $131 peak after Q1 FY27 results showed a thin EPS beat alongside negative $1.9B free cash flow and an inventory build. The stock, now trading at $116.89, pulled back despite 26% eCommerce growth and a 37% jump in advertising revenue.
Global eCommerce now accounts for 23% of net sales, while membership and advertising revenue continue to expand. However, a 42x P/E on 3% net margins and the free cash flow shortfall remain key risks for investors.
The company’s digital flywheel and upper-income household trade-down trends drove its strongest general merchandise share gains in five years, offsetting near-term concerns.