Walmart (NYSE:WMT) has posted better-than-anticipated first-quarter earnings, in a possible sign that tariff tensions drove cost-conscious shoppers to hunt for deals.
Earnings per share for the period came in at $0.61, compared with Bloomberg consensus estimates of $0.58.
Shares in Walmart rose by more than 2% in premarket U.S. trading on Thursday.
A big-box giant known for its low prices and massive selections, Walmart has become something of a bellwether for household sentiment. Recent surveys have indicated a deterioration in consumer confidence and an increase in inflation expectations, as worries grow that U.S. President Donald Trump’s punishing tariff agenda could push up prices.
On Monday, the U.S. and China announced that they had reached an agreement that would slash their sky-high respective tariffs on each other and halt the levies for 90 days. The move comes after Trump slapped soaring duties of at least 145% on China, leading Beijing to respond with its own retaliatory tariffs of 125%.
Trump had previously paused sweeping tariffs on a host of countries in April, arguing that it was necessary to give U.S. officials more time to hammer out trade deals with individual countries.
Despite wide relief in markets about the cooling trade tensions, analysts have noted that the effective tariff rate remains historically higher. Economists, meanwhile, have flagged that increased levies could fuel inflation and weigh on broader economic activity.
Analysts have noted that Walmart’s large scope has allowed it to so far avoid having to lift prices, catering to shoppers looking to protect their pocket books.
But, in an interview with CNBC, CFO John David Rainey said tariffs remain "too high", adding that the "magnitude of these increases is more than any retailer can absorb".
As a result, Rainey flagged that consumers will likely start to see higher prices "towards the tail end" of May and "then certainly much more in June".
Overall U.S. comparable sales, excluding gasoline, rose by 4.8% in the first quarter, compared to projections of 4.1%. Revenue grew by 2.5% versus a year ago to $165.51 billion.
In its current quarter, net sales are tipped to rise by 3.5% to 4.5%, although changes in the tariff policy led it to choose not to provide an outlook for earnings per share.
Walmart reiterated its 2026 fiscal year outlook for adjusted per-share income of $2.50 to $2.60 on net sales growth of 3% to 4%.