Disseminated on behalf of Walmart Inc

Walmart Stock Surges After Earnings Beat, Hits $500B Market Cap


Walmart (NYSE:WMT) impressed Wall Street once again, causing its stock to surge as much as 7% in early trading on Thursday after reporting strong earnings.

For fiscal 2025 Q1, Walmart posted revenue of $161.51 billion, exceeding the expected $159.58 billion. Adjusted earnings per share were $0.60, surpassing estimates of $0.53.

“Customers are continuing to come to Walmart for not only value but also convenience,” said Walmart CFO John David Rainey. “Wallets are still stretched, and customers are still looking for value.”

CEO Doug McMillon added, “The momentum we see across the business is driven by growth in units sold and transaction counts, as well as market share gains, including in general merchandise. These are not inflation-driven results.”

Total US same-store sales increased 3.9% year over year, led by a 4.4% rise at Sam’s Club, where Americans sought out grocery deals. Sam’s Club also reached a record high in member counts, boosting membership income by over 13%.

Walmart’s namesake stores saw same-store sales grow 3.8%, driven by more frequent customer visits, though ticket size remained flat. The company noted it was gaining market share among higher-income households.

Global e-commerce sales leaped 21%, fueled by store pickup, delivery, and the online marketplace.

Amid these positive results, Walmart plans to cut hundreds of jobs and relocate employees to its Bentonville, Arkansas headquarters, as reported by the Wall Street Journal. Walmart, the largest US employer with 1.6 million workers, also conducted its 12th stock split in 50 years. Its shares have risen 13.9% this year, outperforming the S&P 500’s 10% gain.

UBS analyst Michael Lasser noted that “the stock has room to run,” adding that Q1 demonstrates Walmart’s resilience against macro pressures. Deutsche Bank analyst Krisztina Katai highlighted Walmart’s potential to attract both low- and high-end consumers in the coming years, while HSBC analyst Daniela Bretthauer emphasized Walmart’s dominance in the omnichannel grocery market.

Although merchandise sales dropped slightly, consistent with the last three quarters, US grocery sales increased mid-single digits, driven by fresh foods and private brand items. Stifel managing director Mark Astrachan highlighted Walmart’s pricing power, scale, tech investments, and $9 billion store makeovers.

Walmart recently launched a new private label brand, bettergoods, offering high-quality, trendy items priced from under $2 to under $15. The company’s ad business saw a 24% increase in global sales and a 26% rise in US sales.

Walmart’s subscription service, Walmart+, also grew by double digits, with CEO McMillon noting that members engaged more frequently and spent more than other customers.

For fiscal year 2025, Walmart expects net sales to grow on the higher end of 3% to 4% and operating income to grow on the higher end of 4% to 6%. “We will revisit our full-year guidance as we exit the second quarter, maintaining prudence given the macro uncertainty and the year ahead,” CFO Rainey said.

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