Walmart reported another quarter of solid sales, but the retail giant, known for its low prices, cautioned that President Donald Trump’s tariffs will push the company to start raising prices soon.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Doug McMillon, Walmart’s CEO, said on a call with analysts Thursday.
Walmart, the largest retailer in the United States, said sales at its US stores rose more than 3 per cent to $112 billion in its most recent quarter, which ran through April. The company’s e-commerce sales jumped more than 20 per cent, with the fast-growing segment recording its first-ever profitable quarter.
Walmart’s international business grew 7.8 per cent in the first quarter of FY26, helped by Indian e-commerce arm Flipkart, along with the China market and Walmex.
Walmart reported $32.1 billion in sales from its international business, a growth of 7.8 per cent on constant currency terms. Walmart International, which operates in 18 countries outside the US, including India, “advertising business grew 20 per cent led by Flipkart”, it added.
The retailer kept its full-year financial forecast unchanged from its previous projection in February, with revenue expected to increase 3-4 per cent this year. Walmart, however, refrained from projecting profits for its current quarter as tariff policies and pricing decisions remain in flux.
Even as Walmart’s sales remain strong and its full-year projections hold steady, executives said tariffs are weighing on the company and will lead to higher prices. McMillon said that in some cases, the company will maintain prices, “despite the tariff cost pressure,” but emphasised that “the higher tariffs will result in higher prices.”
The latest quarter spanned three months during which tariffs roiled corporate America, and Wall Street analysts and investors closely watched Walmart’s report for any signs of the fallout from Trump’s trade wars in the retail sector.
Walmart executives expressed uncertainty as to how tariffs might affect the company’s bottomline, while stressing that the retail behemoth is well-positioned to navigate the turmoil.
At an investor event on April 9, which coincided with a major trade-war escalation, executives emphasised that two-thirds of what Walmart sells in the US is made, grown, or assembled domestically.
Retail industry observers agreed that Walmart is more insulated from tariff-induced cost increases than many of its competitors. Walmart’s large grocery business limits the company’s reliance on imports, said analysts. But they cautioned that Walmart is not immune to cost increases stemming from tariffs.