Walmart increases its forecast for operating income growth as tariffs take effect

Takeaways

• Walmart said Wednesday that the "range of outcomes" for operating income growth in the first quarter has "widened" amid tariff uncertainty.
• The retailer said it wants to be "flexible" to invest in keeping prices low.
• Walmart said that the first-quarter growth in sales is still expected to be between 3% and 4% over last year.

Walmart (WMT), on Wednesday, said that its forecast for operating profit is less certain due to the tariffs imposed by the Trump administration.

In a Wednesday release ahead of an investor event, Walmart said the "range of outcomes" for operating income growth in the first quarter has "widened." The retail giant cited "less favorable category mix, higher casualty claims expense," and said it wants to stay "flexible" to invest in keeping prices low.

Sales Outlook to Maintain 3% to 4% Increase

Walmart has said that it still expects the first-quarter sales growth to be between 3% and 4% when it reports its first-quarter earnings on May 15th. Walmart exceeded estimates by a narrow margin last quarter and gave conservative fiscal 2026 projections, as some analysts predicted.

John David Rainey, Walmart CFO, said: “History shows that when we embrace these periods of uncertainty and lean in to them, Walmart comes out on the other end with a greater share and a more robust business.”

CEO Doug McMillon on Tuesday called the economic environment "fluid" amid the tariff uncertainty, and Walmart said it will maintain its priority of keeping prices low, according to CNBC.

Walmart shares and those of a number other retailers dropped last week following the announcement of tariffs. They were concerned that tariffs would hurt profit margins or lead to higher price. Some analysts believe that retailers such as Walmart and Costco could still benefit, since consumers are still looking for value.

Walmart shares are up 3% and have gained about 40% over the last year, despite recent losses. Tariff worries have rattled markets. (Read Investopedia’s live coverage of today’s market action here.)