BUSINESS

New York retailer Walmart flags fuel cost squeeze

PUBLISHED May 21, 2026, 10:08 AM ET

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New York retailer Walmart flags fuel cost squeeze

NEW YORK — Walmart reported its first-quarter 2026 results on Tuesday, warning that surging fuel costs tied to the war in Iran are squeezing American consumers and its own margins. The retailer said U.S. comparable sales rose 4.1%, slightly above Wall Street expectations of 4.0%, while adjusted earnings per share came in at $0.66, matching analyst forecasts. Globally, e-commerce sales grew 23% as pickup and delivery remained strong, and the company’s advertising business expanded 37% year-on-year. Despite these gains, Walmart shares fell nearly 2% in early trading after the company issued guidance that came in below market expectations for the second quarter. Management highlighted that the late-February conflict in Iran and resulting disruptions in the Strait of Hormuz pushed U.S. gasoline prices to about $4.53 per gallon, pressuring household budgets and changing shopping behavior. Walmart executives said that when gas prices move into the $4.50 to $5.00 range, many middle- and lower-income shoppers reduce spending on discretionary items such as apparel, electronics and home goods and focus more on essential groceries. The company also reported that higher diesel and transport costs have increased delivery and fulfillment expenses, shaving roughly 250 basis points from operating income. Walmart kept its full-year targets unchanged, reiterating net sales growth of 3.5% to 4.5% and an annual EPS range of $2.75 to $2.85, a stance analysts described as conservative given current inflation and fuel conditions.

By James Porter | JQJO News

Timeline of Events

Late Feb 2026 Iran war begins, Strait disrupted
Early Mar 2026 Global crude prices spike sharply
Q1 2026 Walmart US comps rise 4.1 percent
Q1 2026 Adjusted earnings per share hit $0.66
Q1 2026 E-commerce sales grow twenty-three percent
Q1 2026 Advertising segment expands thirty-seven percent
Today Walmart issues weaker Q2 outlook guidance
Today Walmart shares fall about two percent

News Intelligence

Walmart's warning signals a squeeze on your wallet. With fuel costs rising, everyday items could get pricier. If you're a middle- or lower-income shopper, you might need to cut back on non-essential purchases. Keep an eye on your spending habits.