Walmart's Q1 2025 Earnings: A Steady Performance Amid Economic Uncertainty

Walmart, the retail giant, reported its first-quarter earnings for 2025 on May 15, 2025, showcasing resilience in a challenging economic environment. 

Analysts expected revenue to grow 2.8% year-over-year to $166 billion, a slowdown from the 6% increase in the same quarter last year. 

Adjusted earnings were projected at $0.58 per share. 

The company’s performance was driven by value-seeking consumers, particularly during a strong Easter season, though general merchandise sales faced headwinds due to cautious spending and tariff concerns. 

Walmart’s stock rose 2% in the lead-up to the earnings, reflecting cautious optimism, with an average analyst price target of $107.33 against a share price of $95.88.

Walmart’s ability to maintain growth stems from its dominance in the non-discretionary retail segment, which has seen positive investor sentiment, with share prices in the sector up 15.9% on average over the past month. 

The company’s focus on low prices and essential goods continues to attract budget-conscious shoppers, especially as inflationary pressures linger. 

Additionally, Walmart’s e-commerce initiatives and grocery delivery services have bolstered its competitive edge against rivals like Amazon. 

However, potential tariff increases and a softening economy could pose risks to future growth, particularly for discretionary items.

Looking ahead, analysts remain confident in Walmart’s ability to navigate these challenges, with most reaffirming their estimates in the past 30 days. 

The company’s scale, supply chain efficiency, and strategic investments in technology position it well for sustained performance. 

Investors will be watching closely for updates on same-store sales and guidance for the remainder of 2025, as these metrics will signal Walmart’s ability to balance profitability with growth in an uncertain market.