Walmart says U.S. consumers are under pressure from rising costs

ConsumerWalmart says U.S. consumers are under pressure from rising costsThe nation’s largest private employer reported positive quarterly results, but higher fuel prices have taken a bite out of its profits.A Walmart store in Hollywood, Fla, in 2025. Joe Raedle / Getty ImagesShareAdd NBC News to GoogleMay 21, 2026, 7:44 AM EDTBy Kayla SteinbergU.S. consumers are struggling with rising costs — and many are heading to Walmart.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.The big-box retailer reported Thursday that its revenue rose 7.3% to $177.8 billion in the first quarter, and same-store U.S. sales grew 4.1%, thanks in part to growth from eCommerce and revenue from membership fees. Higher-income households are leading its gains across categories.But Walmart’s sales growth was only one part of the financial picture. The company also issued guidance to investors for the current quarter that fell short of expectations. As the nation’s largest private employer and one of its biggest retailers, Walmart’s quarterly earnings offer a window into how the U.S. economy and consumers are doing. Its report Thursday points to a consumer under pressure.Higher-income households, many benefiting from stock market gains and higher wage growth, are driving an outsized share of consumer spending. Meanwhile, many on the lower end of the “K” are finding their paychecks can’t keep up with rising costs of food, housing, utilities and child care.In April, inflation jumped 3.8%, its highest level in nearly three years, as the Iran war drives up prices across the economy, including for gas and airfares. Regular gas averaged $4.56 nationwide on Thursday, far higher than the $2.98 right before the war, according to AAA. Diesel averaged $5.66, up around $2 since the start of the war.And in April, consumer prices outpaced wage growth for the first time since 2003. The hit to Americans’ wallets could worsen: Economists warn we have yet to feel...