Walmart, as the world’s largest retailer, has a center-row seat to the hottest ticket in town—the tariffs drama. And it has a lot at stake: sales and earnings.

The discount chain’s first-quarter report comes out Thursday morning and the numbers will be an early look at how the shifts in U.S. trade policy are affecting American shoppers and, in turn, company profits.

Markets don’t expect much of a surprise from the results, given the company gave a peek at its investor day a little over a month ago.

At the time, executives said they still expected sales to grow 3% to 4% from a year ago, and reiterated full-year guidance that called for the same growth range.

Wall Street expects Walmart to post adjusted earnings of 58 cents a share on revenue of $165.6 billion for the quarter ended April, according to FactSet consensus estimates. Same-store sales, which measure revenue growth at existing stores, are projected to tick up by 3.9% from a year ago.

“We expect a ‘meet and keep’ print, with 1Q in line with widened expectations and effectively flat operating income,” wrote Greg Melich, an analyst at Evercore ISI, in a Tuesday note.

The stock is up about 7% this year, while the S&P 500 is largely flat.

There are, however, a few big-picture risks that could weigh on Walmart’s results—and those of others still to come.

Management has said consumer demand was slightly choppier this quarter, which could slow sales growth. Plus, the outlook didn’t factor in tariffs because executives said federal policy was fluctuating too much to provide longer-term guidance.

Walmart’s decision not to account for tariffs may or may not prove wise. The company’s bottom-line results could reflect higher import costs from the tariffs implemented in the past six weeks—a 10% baseline tariff on most imports and higher ones on certain products from Canada and Mexico.

Chinese imports had been subject to a 145% levy until a temporary agreement with the Trump administration was reached on Monday, though the rate is still higher—at 30%.

And while that is a more manageable number, it is still hefty enough to threaten profit margins. Consequently, tariffs will remain top of mind for both investors and C-suite executives.

Imported goods—the bulk from China and Mexico—accounted for roughly a third of Walmart’s U.S. sales last year, but Wall Street is confident Walmart is well positioned to navigate tariffs for a host of reasons.

Robert Ohmes, an analyst at BofA Securities, points to the company’s mammoth size, close relationships with suppliers, automation efforts, growing third-party marketplace, and alternative revenue streams such as advertising. And most of its grocery products are sourced domestically.

Still, Walmart isn’t entirely immune to trade policy shifts. At the investor day, management said the company had various strategies to offset tariffs, including sourcing more products from the U.S.

Investors, though, want more details on how Walmart plans to manage pricing: Will the company hike some prices to preserve margins? Will it take the profit hit to keep prices lower than competitors?

Jefferies analyst Corey Tarlowe is betting the company will take the hit to profits, a decision that might come back to bite.

Efforts to “gain market share and mitigate tariff impacts could hinder the magnitude of margin expansion ahead,” Tarlowe wrote in a note last week.

Indeed, at the investor day, Walmart said the possible range for adjusted operating income had widened for the first quarter because of the tariff volatility.

“We see opportunities to accelerate share gains and we’re maintaining flexibility to invest in price as tariffs are applied to incoming goods,” CFO John David Rainey told investors.

Walmart’s suggestion that it might accept lower margins to stay competitive prompted Tarlowe to drop his profit estimates for the quarter.

But Tarlowe isn’t any less bullish on the stock. It’s still his top pick for the year because he thinks Walmart’s short-term price investments could—in the long run—attract new customers.

Other analysts agree, noting that even if higher import costs hurt profit, Walmart has more profit levers to pull than most retailers. Those options help justify the stock’s lofty valuation—a price-to-earnings ratio of 40.2.

“Greater use of technology across the business, including automating processes and the supply chain, and new businesses, like fulfillment, should help the profit profile,” wrote Joseph Feldman, an analyst at Telsey Advisory Group.

“We also remain encouraged about Walmart’s expanded vision beyond retail and e-commerce to build a powerful ecosystem—including advertising, merchant services, and last mile delivery—as these elements are more profitable than traditional retail.”