Walmart Widens Its Forecast for Operating Income Growth as Tariffs Take Effect

Walmart (WMT) on Wednesday said its forecast for operating income is less certain as the Trump administration’s tariffs go into effect.

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 Maintained at 3% to 4% Growth

Still, Walmart said it expects first-quarter sales to grow by 3% to 4% year-over-year when it reports first-quarter results on May 15. Walmart narrowly topped estimates last quarter, and gave conservative projections for fiscal 2026, as some analysts had projected.

“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” Walmart CFO John David Rainey said.

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.

Shares of Walmart and a number of other retailers fell last week after the tariffs were announced over concerns that tariffs will hurt profit margins, or lead to higher prices. However, some analysts have suggested retailers like Walmart and Costco (COST) could still benefit as consumers look for value.

Walmart shares rose 3% in recent trading and have added about 40% over the past 12 months, despite recent losses as tariff worries rattled markets. (Read Investopedia’s live coverage of today’s market action here.)