Walmart's Fuel Costs Bite into Earnings Growth

Walmart's (WMT) first-quarter earnings were impacted by higher fuel costs, which created a significant drag on operating income. The company absorbed approximately $175 million in excess fuel expenses across its global distribution and fulfillment operations.

This pressure reduced operating income growth by about 250 basis points, but Walmart maintained its fiscal 2027 outlook for adjusted operating income growth of 6% to 8% in constant currency.

Walmart's gross profit rate increased six basis points to 24.3%, thanks to favorable merchandise category mix and business mix, including advertising. However, higher fuel costs in the supply chain partly offset these benefits.