Walmart wins over broader swath of consumers, but global uncertainty
clouds outlook for retailers
[May 22, 2026] By
ANNE D'INNOCENZIO
NEW YORK (AP) — Walmart delivered another quarter of impressive sales
with speedy deliveries and low prices becoming a strong magnet for
people across the income spectrum that are spending more on almost
everything, particularly gasoline.
Yet like other major retailers posting financial results this week,
Walmart was cautious about the rest of the year given the current
economic uncertainty. On Thursday, it issued a forecast for the current
quarter that was weaker than what Wall Street had been expecting.
Shares slipped about 7% Thursday.
Walmart has resonated with many Americans who are increasingly careful
about where they spend their money as inflation takes a bigger bite out
of paychecks, notably gasoline which has soared since the start of the
Iran war in late February. Walmart can serve as a barometer of consumer
spending given its vast customer base. More than 150 million customers
are on its website or in its stores every week, according to Walmart.
One telling shift during the quarter that captures the stress many
Americans are feeling: The number of gallons that customers put in their
cars during visits to U.S. Walmart and Sam’s Club gas stations fell
below 10 for the first time since 2022, which was the midst of the
COVID-19 pandemic.
“That’s an indication of stress,” said Chief Financial Officer John
David Rainey.
Walmart touted strong sales that were fueled by online shopping on
Thursday.
Comparable sales at U.S. Walmart stores rose 4.1% during the three-month
period ended April 30. Walmart’s U.S online sales rose 26%, the company
said.
Walmart’s promise of lower prices, faster delivery and a refresh of its
merchandise has attracted wealthier shoppers. The biggest gains in
market share for Walmart are coming from households with annual income
over $100,000. That shift is taking place as lower-income shoppers
become more entrenched in what economists collectively call a K-shaped
economy.
“We see with our customers that the high-income customer is spending
with confidence into many categories, while the lower income consumer is
more budget conscious and perhaps navigating financial distress,” Rainey
told analysts on Thursday.
Rainey told analysts that higher fuel prices took a bite out of profits
as it was forced to absorb higher transportation costs. And while the
company is focused on offering low prices, Walmart may raise prices
later if fuel costs remain high, he said.
U.S. retailers have spent months navigating an uncertain economic
environment, from President Donald Trump’s tariffs to the impact of
soaring gasoline prices due to the war. The average price for a gallon
of regular gasoline raced higher this week and did so again overnight.
Gasoline prices are about 45% above where they were at this time last
year.
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Drones operated by Zipline leave base to make deliveries from a
Walmart store in Pea Ridge, Ark., Friday, Sept. 26, 2025. (AP
Photo/Charlie Riedel)
 Based on quarterly financial reports
from Walmart, Target, Home Depot, Lowe's and TJX, shoppers are
cautious but still spending, helped by more generous tax refunds.
Yet there is a widespread belief among economists that once those
refunds dry up, shoppers will pull back on spending. Consumer
spending is the dominant economic engine for the U.S., and retreat
would have broad implications for the U.S.
Target reported the largest jump in comparable sales in four years
Wednesday, but a cautious outlook overshadowed rather convincing
evidence that changes under the company’s new CEO are landing
solidly with customers. Target raised its annual revenue outlook
Wednesday, but it was still below the pace of its first quarter this
year.
The nation’s two largest home improvement retailers Home Depot and
Lowe’s reported strong sales, but both companies said that customers
are putting off larger home projects.
“I think, overall, this has been the most difficult housing market
that I’ve faced in this business since the financial crisis,” Lowe’s
CEO Marvin Ellison said this week.
Walmart, based in Bentonville, Arkansas reported first-quarter
earnings of $5.33 billion, or 67 cents, for the quarter ended April
30. Adjusted per-share results were 66 cents, matching the 66 cents
that analysts expected, according to FactSet.
For the year-ago quarter, the company reported net income of $4.48
billion, or 56 cents per share.
Sales rose 7.3% to $177.75 billion in the fiscal first quarter,
above the $174.84 billion that analysts predicted.
Walmart said higher fuel prices took a bite out of profits as it was
forced to absorb higher transportation costs.
The company highlighted its speedier deliveries, which is driving
more shoppers to buy more often. Rainey said that roughly 60% of
U.S. online deliveries arrive at customers' homes in 30 minutes or
less.
For the second quarter, Walmart expects sales to be 4% to 5% higher
than the same period a year ago. It also expects per-share profit to
be between 72 cents and 74 cents. Analysts had been projecting
per-share earns of 75 cents on sales of $186.2 billion, according to
FactSet.
Walmart stuck to the annual guidance that it issued in February.
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