Walmart Inc (NYSE:WMT, ETR:WMT) has pulled its operating income forecast for the first quarter of fiscal 2026 due to uncertainties surrounding the impact of US president Donald Trump's sweeping tariffs on imports from countries like China and Vietnam.
These tariffs, which include rates as high as 104% on Chinese imports and 46% on Vietnamese goods, are expected to significantly affect Walmart's supply chain and pricing strategies.
Walmart will report its Q1 earnings on May 15.
The company had previously projected adjusted operating income growth of 0.5% to 2% for Q1, but did not provide a revised estimate in an update on Wednesday ahead of an Investment Community Meeting.
Walmart told investors that the outlook for first-quarter operating income growth has become more uncertain, driven by a less favorable product mix, increased costs from casualty claims, and a strategic focus on preserving flexibility to adjust pricing as tariffs take effect.
Walmart reaffirmed its Q1 sales forecast of growth of 3% to 4%.
“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 in a statement.
“We have fundamentally changed our business model through years of thoughtful, strategic investments and now have a financial model that yields much higher returns.”
The company’s shares moved 3.9% higher in Wednesday morning trading.