Walmart's stock price plummeted 5.50% during Thursday's intraday trading session, marking a significant decline for the retail giant.

The sharp drop followed the company's first-quarter earnings report, which showed revenue beating expectations at $177.75 billion but revealed concerning forward guidance. Walmart maintained its full-year adjusted EPS guidance range of $2.75 to $2.85, with the midpoint of $2.80 falling well below the analyst consensus estimate of $2.92. Second-quarter guidance also disappointed, with projected adjusted EPS of $0.72 to $0.74 missing the $0.75 estimate.

Investors were particularly concerned about rising fuel costs, which impacted operating income by approximately 250 basis points in distribution and fulfillment operations. The company warned that if the current elevated cost environment persists, consumers could face higher retail prices in the coming quarters. With Walmart shares having already gained over 20% year-to-date, the conservative outlook and margin pressures raised questions about growth sustainability amid a challenging economic backdrop.