Robust omni-channel reach, 22 % e-commerce growth, and AI-driven automation lifted Walmart’s Q1 2026 sales to $165.6 B while driving higher profits.

Table of Content

Q1 2026 Performance Q1 2026 Growth Over Q4 2025 Key Highlights Future Outlook

Walmart’s first quarter outperformance is rooted in three reinforcing pillars: an omni-channel model that seamlessly blends 4,700 U.S. stores with a single, user-friendly app; a turbocharged e-commerce engine that drove 22 % digital growth and helped lift sales to an above-forecast $165.6 billion; and heavy automation ranging from AI-guided personalization to next-generation, high-speed fulfillment centers that slashed unit-delivery costs, densified last-mile routes, and propelled profit 3 % ahead of last year. Together, these capabilities have reshaped Walmart’s business model for higher, more scalable returns and positioned the retailer to keep gaining share across every channel it serves.

 

Q1 2026 Performance

Net Sales Growth‍

$164.0 billion, up 2.5 % year-over-year, or 4.0 % on a constant-currency basis‍‍

Global eCommerce Sales

Grew 22 %, driven by store-fulfilled pickup & delivery and marketplace volume

Global Advertising Business

Grew 50 % worldwide; Walmart Connect U.S. rose 31 % in its first full quarter with VIZIO inventory

Membership Income

Up 14.8 % YoY, continuing double-digit momentum

 

Q1 2026 Growth Over Q4 2025

Net Sales Growth

$180.6 B (+4.1 % overall / 5.3 % cc)

$164.0 B (+2.5 % overall / 4.0 % cc)

Seasonal step-down post-holiday, but growth stayed positive.

Membership & Alt. Revenue

ROI rose 50 bps to 15.5 %; membership out-paced sales

Membership income +14.8 %; ROI 15.3 %, +30 bps YoY

Membership and other income continue cushioning margin pressure.

E-Commerce & Delivery

Global e-commerce +16 %; >30 % of orders paid for <3-hr delivery

Global e-commerce +22 %; store-fulfilled share widened; expedited demand sustained

Faster delivery and broader marketplace drove the acceleration.

Operational Efficiency & Tech

AI & automation cut per-unit costs, improved inventory

Further FC automation; e-commerce contribution to U.S. comp ~350 bps

Ongoing tech spend kept operating-income growth ahead of sales (+4.3 % YoY ).

 

Key Highlights 

E-commerce Continues to Accelerate

After growing 16 % in Q4 FY 2025, Walmart’s global on-line sales jumped 22 % in Q1 FY 2026. Several flywheels are at work: a store-fulfilled network that now offers same-day service to roughly 93 % of U.S. households; a paid “Express” option chosen on more than 30 % of digital orders that delivers in under three hours (often in less than one hour); and a denser last-mile grid supported by new automated fulfilment-centre modules and nearly half of marketplace parcels moving through low-cost Walmart Fulfillment Services. These steps cut unit delivery costs, enabled the company to post enterprise-level e-commerce profitability for the first time, and helped lift overall gross margin.

Membership Fees are Widening the Profit Pool

Walmart+ and Sam’s Club membership income rose 14.8 % year-over-year in Q1, outpacing headline sales growth. Paid members receive free unlimited delivery, fuel discounts, prescription savings and Scan & Go checkout, which pushes renewal rates and Plus penetration higher while encouraging larger, more frequent baskets. Because membership carries structurally higher margins than core retail sales, the expansion in fee income together with advertising now accounts for roughly a quarter of total operating profit and provides room to hold the line on everyday-low prices as tariffs and other cost pressures emerge.

Retail Media Scale is Surging

Global advertising revenue advanced 29 % in Q4 and accelerated to 50 % in Q1 as the first full quarter of VIZIO’s connected-TV inventory kicked in; Walmart Connect’s U.S. business alone grew 31 %. Nearly one in two marketplace sellers is now buying ad placements, and the addition of VIZIO’s SmartCast operating system lets brands reach shoppers on large-screen video, creating higher-margin income for Walmart while giving advertisers closed-loop measurement and new customer cohorts to target.

 

Future Outlook

Management reiterated guidance for FY 2026 constant-currency sales growth of about 3 – 4 % and adjusted operating-income growth of 3.5 – 5.5 %. The company expects e-commerce density, rising membership penetration and continued retail-media adoption to keep operating income growing faster than revenue, even as tariffs and a mixed macro backdrop introduce choppier quarter-to-quarter results.