Shoppers browse inside a Walmart store in Rosemead, California, on April 11, 2025. As one of the country’s largest retailers and importers, Walmart is expected to feel the impact of new tariffs. Experts estimate that around 70 to 80 percent of the products sold at Walmart come from China. (Photo by Frederic J. Brown / AFP via Getty Images)
Walmart is set to announce its quarterly earnings before the markets open on Thursday. The report comes at a time when analysts are closely watching how American shoppers are holding up in a changing economy—and how shifting tariffs might affect major retailers like Walmart.
According to a survey from LSEG, Wall Street expects Walmart to report earnings of 58 cents per share and bring in around $165.88 billion in revenue for the fiscal first quarter. These numbers will offer insights into consumer spending trends and Walmart’s position in the retail world as inflation, tariffs, and cautious shoppers continue to reshape the economy.
Despite the challenges, Walmart appears well-placed to ride out economic ups and downs. As the country’s largest grocery store chain, it continues to draw steady foot traffic thanks to essential purchases like food and household items. What’s more, Walmart’s budget-friendly image has increasingly appealed to not just budget-conscious families, but also middle- and higher-income shoppers looking to save.
Efforts to attract these new customers are paying off. Faster delivery options, sleeker store designs, and an expanded range of brands have helped Walmart become more than just a bargain stop. On top of that, the company has successfully grown its business beyond traditional retail. It’s seeing increased profits through new ventures, including advertising services, online delivery, and its Walmart+ membership program.
Last month, during an investor meeting, Walmart reaffirmed its expected first-quarter sales growth of 3% to 4%. However, it offered a wider, less specific range for its operating income, citing uncertainties caused by changing tariffs.
John David Rainey, Walmart’s Chief Financial Officer, noted during that meeting that weekly sales had been more unpredictable than usual. He pointed out that April was expected to be the quarter’s strongest month due to the Easter holiday.
About one-third of Walmart’s U.S. inventory comes from outside the country, especially from China and Mexico. That matters because tariffs on imported goods can influence both costs and pricing. Recently, former President Donald Trump announced a temporary reduction in U.S.-China tariffs for 90 days. Chinese officials also agreed to ease duties on American products.
Retail experts say this window could be a valuable opportunity. Simeon Gutman, a retail analyst at Morgan Stanley, suggested that Walmart and similar retailers may take advantage of the 90-day reprieve to stock up for the back-to-school and holiday shopping seasons.
Thanks to its massive scale, Walmart has room to operate efficiently and negotiate better prices with suppliers. This means it can offer competitive prices even while other businesses struggle with cost pressures. Gutman called Walmart’s position “enviable,” especially as customers grow more cautious about where they spend their money.
Still, he cautioned that Walmart needs to keep proving its value to shoppers. With tighter household budgets, even Walmart must show it can win over hesitant consumers.
As of Wednesday, Walmart shares have risen roughly 7% since the start of the year. That’s a strong showing compared to the S&P 500, which has stayed mostly flat. Walmart’s stock closed at $96.83, pushing its market value to around $775 billion.
