Walmart Reports 2.5% Revenue Growth, Plans U.S. Price Hikes Due to Tariffs

Walmart, the retail giant, has reported a total revenue of $165.6 billion for the first quarter of its 2026 fiscal year, which ended on April 30, 2025. This figure represents a 2.5% increase compared to the same period last year. The company's operating profit for the quarter reached $7.14 billion, a 4.3% year-over-year increase, with a gross margin of 24.2%, up 12 basis points from the previous year.

Walmart's international business, particularly in China, showed strong performance. The region achieved net sales of $6.7 billion, a 22.5% increase from the previous year. Comparable sales grew by 16.8%, and e-commerce sales surged by 34%. This robust performance in China highlights the region's significance to Walmart's global strategy and its ability to drive growth in key markets.

In response to increasing cost pressures, particularly from tariffs, Walmart has announced plans to raise prices on certain products in the U.S. The company's executives noted that the tariff increases have exceeded the level that any retailer can absorb, making price adjustments necessary. Approximately one-third of Walmart's products sold in the U.S. are imported, with major sourcing countries including China, Mexico, Canada, Vietnam, and India. This move is aimed at mitigating the financial strain caused by higher import costs, which have been a significant factor in the company's operating expenses.

Walmart's decision to raise prices is a strategic response to the economic challenges posed by tariffs. By adjusting prices, the company seeks to balance its financial health while continuing to offer a wide range of products to its customers. This approach allows Walmart to maintain its profitability and remain competitive in the retail market, despite the increasing cost pressures.