Walmart is considering how to allocate potential tariff refunds that could amount to less than half of 1% of its annual U.S. sales — roughly $2.4 billion — with a clear intention to channel any recovery into lowering prices for customers facing ongoing cost pressures.
Speaking during the company’s fiscal Q1 2027 earnings call (ended April 30), CFO John David Rainey said Walmart would “definitely bias and try to prioritize” using any tariff refunds to support price reductions, pointing to persistent pressure on consumers, particularly from elevated fuel costs.
Rainey emphasized that Walmart’s current strategic focus is centered on customer affordability. “We think the single best return that we can have on a dollar capital right now is to invest in the customer and invest in price,” he said.
The potential refunds stem from tariffs that were struck down by the U.S. Supreme Court in February. Last month, U.S. Customs and Border Protection began accepting claims for reimbursement, and in a recent court filing the agency confirmed it had already processed $35.46 billion in refunds, including interest, as of May 11. More than 15 million entries have been validated, according to the filing.
Walmart is not alone in factoring potential tariff recoveries into its broader financial considerations. Ford Motor Co. previously recorded a $1.3 billion benefit tied to expected refunds, while General Motors raised its 2026 outlook partly based on anticipated $500 million in tariff-related recoveries.
However, Walmart has excluded any such refunds from its official guidance. Rainey noted that the company prefers to present financial forecasts based on underlying business performance rather than uncertain recoveries.
“We felt it best to provide guidance that reflects our expectations for the underlying business, excluding any recovery of tariffs paid,” he said.
Despite this conservative outlook, Walmart maintained its full-year guidance and expects sales growth toward the upper end of its range. The retailer posted Q1 revenues of $177.8 billion, up 7.3% year over year.
At the same time, rising fuel costs continue to weigh on operations. Walmart absorbed approximately $175 million in additional fuel expenses across its global distribution and fulfillment network during the quarter, reducing operating income growth by about 250 basis points, according to Rainey.
“We continue to play offense, despite the short-term pressure on profits,” he added.
For fiscal 2026, Walmart previously reported total revenues of $713.2 billion, including $483 billion generated in the U.S. market.
