Walmart e-commerce jumps 26% in Q1 as omnichannel strategy drives growth

Walmart reported Q1 revenue of $177.8 billion, up 7.3%, as e-commerce sales jumped 26% globally.

"The results reflect our ability to serve customers however they choose to shop," John Furner, chief executive officer of Walmart U.S., said during the company's annual shareholder meeting in Bentonville, Arkansas.

Revenue topped the $169.4 billion reported a year earlier, with global e-commerce growth of 26% and advertising sales surging 37%. Membership fee revenue rose 17.4% globally. Earnings per share came in at $0.67, up 19.5% from a year ago. The retailer exited the quarter with $10.7 billion in cash and repurchased 16.6 million shares for $2.1 billion, with $28.2 billion remaining under its buyback authorization.

The results signal Walmart's omnichannel bet is paying off as the retailer integrates physical stores with digital fulfillment. Store pickup and delivery, along with marketplace growth, drove the e-commerce acceleration. The company expects Q2 net sales to increase 4% to 5% over the $175.8 billion reported a year ago, with adjusted EPS between $0.72 and $0.74. For the full fiscal year, it projects net sales growth of 3.5% to 4.5%.

Walmart's e-commerce strength comes as the retailer invests heavily in technology to speed up fulfillment. The company now uses artificial intelligence to generate optimal picking routes through stores and to time in-store Subway orders so sandwiches are ready when pickup arrives. A new AI-powered chatbot called Sparky is also providing the company with richer data on customer preferences through natural language queries.

The stock pulled back 12% in May, but analysts see at least 25% upside over the next year, according to Insider Monkey data. The guidance raise suggests management expects e-commerce momentum to continue. Investors will watch the Q2 earnings report later this year for further margin expansion as higher-margin digital and advertising revenue streams grow as a share of total sales.

This article is for informational purposes only and does not constitute investment advice.