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Walmart reported first-quarter revenue of $177.8 billion on Thursday, a 7.3% increase from a year earlier, as gains in e-commerce and higher-income shoppers helped drive comparable U.S. store sales up 4.1%, excluding fuel. That beat analyst expectations of $174.98 billion in revenue and comparable sales growth of 3.85%, according to CNBC.

On the bottom line, adjusted earnings per share of $0.66 were in line with what analysts had penciled in, according to CNBC. Net income for the quarter reached $5.33 billion, an 18.8% year-over-year improvement. Across Walmart's global business, e-commerce volume expanded 26% and the advertising segment posted 37% growth.

Despite the top-line strength, higher fuel prices emerged as a pressure point on margins. Operating income was negatively affected by 250 basis points from elevated fuel costs in distribution and fulfillment, the company said. Speaking with Bloomberg, CFO John David Rainey indicated that the company took on nearly all of the quarter's fuel cost increases itself — a headwind of around $175 million — and warned that a similar or steeper burden could materialize in the months ahead.

"It'll probably be larger than that in the second quarter if fuel prices stay where they are, so we're absorbing those prices and still maintaining our guidance, and I feel really good about that," John David Rainey told CNBC.

Looking ahead to the second quarter, the retailer guided for adjusted earnings per share between $0.72 and $0.74 — short of the $0.75 consensus — and projected net sales growth of 4% to 5%, according to CNBC. On a full-year basis, Walmart held its fiscal 2027 guidance steady, calling for net sales gains of 3.5% to 4.5% and adjusted earnings per share of $2.75 to $2.85, a range that trails the $2.97 analysts had anticipated, per Yahoo Finance.

Rainey also flagged a potential shift in consumer conditions going into the second quarter, telling CNBC that the tailwind from elevated tax refunds — which he credited with cushioning shoppers against rising fuel costs earlier in the year — was likely to dissipate, leaving households more exposed to pump prices.

Breaking down e-commerce performance by segment, the U.S. division expanded 26%, Sam's Club added 23%, and the international arm grew 27%. On the membership side, fee revenue increased 17.4% across global operations, and Walmart Connect — the company's U.S. advertising platform — delivered 44% growth when the VIZIO acquisition is set aside.

The earnings report follows Walmart's decision to cut or relocate about 1,000 corporate jobs in its technology and product divisions as the company consolidates operations around a unified global platform.

Walmart stock fell about 2% in premarket trading on Thursday, according to Bloomberg.