Will WMT's Q1 2026 EPS meet forecasts?

Walmart's Q1 2026 EPS is likely to be below forecasts. Here's why:

1. Conservative Forecast: Walmart has forecasted an EPS of $2.50 to $2.60 for fiscal 2026, which is below the analyst expectation of $2.76 per share. This indicates a conservative outlook for the upcoming quarter.
2. Soft Outlook: The company's recent outlook suggests a cautious approach. Walmart predicts slower sales growth of 3 to 4 percent for fiscal 2026, which is lower than the expected 4% growth.
3. Inflation and Economic Uncertainty: Walmart's cautious outlook is influenced by inflation-fatigued customers and uncertainties related to consumer behavior and global economic and geopolitical conditions. These factors are likely to impact consumer spending, thereby affecting earnings.
4. Historical Performance: While Walmart has shown resilience in the past, its EPS has not always met forecasts. For instance, in fiscal 2025, although the company exceeded sales profit and earnings expectations in Q4, its full-year outlook was conservative, which resulted in EPS falling short of estimates.
5. Market Reaction: Walmart's stock has dropped significantly after the forecast was released, reflecting investor disappointment. This decline suggests that the market may be anticipating a shortfall in EPS.

In conclusion,考虑到Walmart的保守预测、软展望、通胀和经济不确定性以及历史表现，预计其2026年第一季度的EPS可能低于预期。