Walmart Surges Ahead as Tariffs Test Consumer Titans

Walmart and Procter & Gamble are two consumer defensive giants navigating the same tariff-heavy backdrop, but their strategies differ. Walmart owns the shelf and the customer, while P&G supplies the brands on that shelf.

In its Q1 FY27 results, Walmart reported revenue of $175.68 billion, up 6.08% year over year, with adjusted EPS of $0.66. The real story sits underneath: global e-commerce grew 26%, and marketplace sales jumped nearly 50%. New CEO John Furner emphasized 'better shopping experiences, a broader assortment, and faster delivery', which shows in 4.1% U.S. comp growth powered by upper-income households.

P&G reported Q3 FY26 with net sales of $21.235 billion, up 7.4%, but organic growth was only 3%. New CEO Shailesh Jejurikar called it 'a solid acceleration in top-line results', though core gross margin still compressed 100 basis points.

The two companies have different approaches to tariffs: Walmart absorbs the costs via scale, while P&G faces a $400M annual tariff hit. Walmart is also aggressively investing, with capex up 34% to $6.684 billion, pushing free cash flow negative in the quarter.