Walmart Earnings in Focus Amid Tariff Pressures and E-Commerce Growth

Walmart (NYSE:WMT), the world’s largest retailer, is set to report earnings Thursday, offering insight into how it continues to navigate U.S.-China trade tensions and rising tariffs. With a resilient strategy, Walmart reaffirmed its annual outlook last month, stating that current conditions won’t alter its long-term plans. This came just as the U.S. imposed a 145% tariff on Chinese imports, a key supply source for Walmart.

Unlike competitors, Walmart hasn’t revised its forecast. Target, for example, expects flat sales and margin pressure from tariffs. Walmart, however, is committed to keeping prices low, maintaining its edge over Amazon (NASDAQ:AMZN), which has also moved aggressively to shield consumers from price hikes by encouraging inventory relocation ahead of tariffs.

Analysts expect Walmart’s Q1 net sales to grow 2.7% to $165.88 billion, though net income may dip 9% to $4.64 billion. Still, its strong global sourcing network and vendor relationships give it an advantage in managing cost pressures. Jefferies analyst Corey Tarlowe notes that as consumers focus more on essentials and savings, value-oriented retailers like Walmart stand to benefit.

Walmart’s U.S. e-commerce division, which has delivered double-digit growth for 11 straight quarters, is expected to hit profitability for the first time. E-commerce now accounts for nearly 20% of annual revenue. Walmart+ performance is also closely watched, with investors eager to see if it can rival Amazon Prime and Costco (NASDAQ:COST) memberships.

Walmart shares have soared 60% over the past year, pushing its market cap above $700 billion—outpacing most of the Magnificent Seven tech giants. Analysts from UBS suggest its strong positioning will shine even brighter in a tougher retail environment later this year.