Walmart CFO: Tariffs drive 8% price increase, bananas now 54 cents per pound

Walmart CFO: Tariffs drive 8% price increase, bananas now 54 cents per pound

Walmart Inc. (WMT) is set to release its first-quarter fiscal 2026 earnings on May 15, with analysts anticipating a significant impact from tariffs on its pricing strategy. The retail giant is expected to report revenue of $164.5 billion, with projected earnings per share ranging from $0.57 to $0.58 [1].

The company's earnings report comes amidst ongoing tariff concerns, which have led to an 8% price increase for bananas, now priced at 54 cents per pound. This price hike is part of Walmart's broader strategy to navigate the challenges posed by tariffs and maintain sales momentum. Analysts remain optimistic, with a one-year price target of $107.67, suggesting an 11.32% upside from the current price of $96.72 [1].

Despite the tariff-related price increases, Walmart's e-commerce sales rose 22% globally in the first quarter, driven by in-store pickup and delivery services, as well as its advertising platform and online marketplace. The company maintained its full-year outlook but warned of potential tariff-related price hikes later this month [2].

The consensus among 38 analysts provides a one-year price target of $107.67, indicating an 11.32% upside from the current price of $96.72, with high and low estimates at $120.00 and $85.34, respectively. Additionally, 44 brokerage firms rate Walmart Inc. (WMT, Financial) at an average of 1.8, indicating an "Outperform" status [1].

In contrast, GuruFocus provides a contrasting perspective, forecasting the stock at $61.72 over the next year, a potential downside of 36.19% from the current price of $96.72 [1].

Walmart's earnings report will be closely watched by investors and financial professionals alike, as the company's ability to navigate tariff challenges and maintain its sales momentum will be critical to its future performance.

References:
[1] https://www.gurufocus.com/news/2851829/walmart-wmt-to-announce-key-q1-2026-earnings-amid-tariff-concerns?mobile=true&r=4bf001661e6fdd88d0cd7a5659ff9748
[2] https://www.nasdaq.com/articles/etfs-focus-post-walmart-q1-earnings