Walmart shares rise after profit, retailer surpasses $500 billion in market cap

Walmart ( WMT ) surprised Wall Street again, sending the stock up 7% in early trading Thursday.

For its 2025 Q1 fiscal year, America’s largest retailer reported revenue of $161.51 billion, beating expectations of $159.58 billion, while adjusted earnings per share rose to $0.60 compared to estimates of $0.53.

“Customers continue to come to Walmart not just for value, but for convenience,” Walmart CFO John David Rainey told Yahoo Finance. “We’re seeing wallets stretched even further, and they are [customers] Still looking for value.”

In a call with investors, CEO Doug McMillon said: “The momentum we’re seeing across the business is driven by growth in units sold and transaction numbers and market share gains. These are not inflation-driven results.”

Total U.S. same-store sales rose 3.9% year-over-year as Americans sought deals on groceries, up 4.4% on the back of growth at Sam’s Club. The wholesale retailer achieved record highs for membership and added memberships, resulting in membership revenue growth of more than 13%.

Its namesake stores saw same-store sales grow 3.8%, boosted by more frequent customers, although ticket volume was flat. The company noted that it is gaining market share among high-income households.

Global e-commerce sales rose 21%, boosted by in-store pickup and delivery and its online marketplace.

The decisions come as the company plans to cut hundreds of jobs and has asked employees to relocate to its headquarters in Bentonville, Ark. The WSJ reported Tuesday.

Walmart is the largest US employer with 1.6 million US workers.

During the quarter, the company split stock for the 12th time in 50 years. Its shares are up 13.9% this year, outperforming the S&P 500 (^ GSPC) 10% profit.

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Ahead of the report, UBS analyst Michael Lazer wrote in a note to clients that “the stock has room to run.” Q1, he said, “needs to demonstrate further evidence that the stock aligns well with what the market is now expecting, that it is a sustainable business that is more insulated from current macro pressures than the rest of the pack.”

“Walmart is in a double-edged position to acquire low- and high-end customers in the coming years,” Deutsche Bank analyst Krisztina Katai told Yahoo Finance by phone ahead of the report.

HSBC analyst Daniela Bretthauer called the stock an excellent pick ahead of the report.

“The future of grocery shopping is becoming increasingly ubiquitous, and Walmart is the largest grocer in America,” Bretthauer told Yahoo Finance. “You have a big player online, which is Amazon, but in grocery … Walmart has a big advantage.”

Consistent with the past three quarters, product sales declined in the low single digits. But U.S. grocery sales grew in the mid-single digits, driven by sales of fresh foods and private-brand products, Stifel CEO Mark Astrachan wrote in a note to clients..

The company benefits from its pricing and economies of scale, as well as technology investments and its $9 billion store makeover.

Recently, the company launched a new private label brand Best stuffIt offers high-quality, trendier items at prices ranging from $2 to under $15.

Its profitable advertising business is also boosting its top line, boasting a 24% increase in global sales and a 26% increase in US sales.

Its subscription business, Walmart+, grew in the double digits, as CEO McMillon said members engaged more often and spent more than other customers.

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Here’s what Walmart reported for its fiscal 2025 first quarter, compared with Wall Street estimates compiled by Bloomberg:

Revenue: $161.51 billion and 159.58 billion

Adjusted earnings per share: $0.60 and $0.53

Overall same-store US sales growth: 3.9% and 3.42%

Walmart US Same Store Sales Growth: 3.8% and 3.45%

Sam’s Club US Same Store Sales Growth: 4.4% vs. 3.3%

Walmart US E-Commerce Growth: 22% and 13.33%

A Walmart employee fulfills Instacart orders in the produce aisle in North Carolina.  (Photo: Getty Images by Lindsey Nicholson/UCG/Universal Images Group)

A Walmart employee fulfills Instacart orders in the produce aisle in North Carolina. (Getty Images via Lindsey Nicholson/UCG/Universal Images Group) (UCG via Getty Images)

For the full fiscal year 2025, the company expects net sales to rise 3% to 4% and operating income to rise 4% to 6%.

“We will review our full-year guidance as we exit [the] Second quarter. This is very consistent with our historical updates, and with our philosophy as a management team to identify early momentum, but maintain prudence early in the year given the macro uncertainty and much of the year ahead. For us,” Walmart CFO John David Rainey said on a call with investors following fiscal 2025 Q1 results.

Correction: An earlier version of this article misspelled the last name of Walmart CEO Doug McMillan. Sorry for the mistake.

Brooke DePalma is a senior reporter at Yahoo Finance. Follow her on Twitter at @Brooke DePalma Or send an email to [email protected].

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