WMT Earnings: WMT Stock Declines After Q2 Results Fall Short of Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Should l Buy WMT?
Source: TipRanks
Walmart's Q2 Earnings Report: Walmart's shares fell nearly 3% after reporting adjusted earnings per share of $0.68, missing forecasts of $0.74, while operating income dropped by 8.2%.
Revenue Growth: The company saw a revenue increase of 4.8% to $177.4 billion, surpassing expectations, with U.S. same-store sales rising by 4.6%, driven by strong grocery and health demand.
E-commerce Performance: E-commerce sales surged globally by 25% and by 26% in the U.S., supported by store-fulfilled pickup and delivery services.
Positive Outlook for 2026: Despite challenges, Walmart raised its sales growth forecast for 2026 to between 3.75% to 4.75%, with adjusted EPS expectations also slightly increased.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 123.500
Low
119.00
Averages
125.75
High
136.00
Current: 123.500
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Challenges: With growth in major markets like China stalling, Unilever and other consumer giants are facing difficulties in organic growth, prompting a strategic focus on mergers and acquisitions to explore new growth avenues, particularly in high-margin core categories.
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- Industry Trend: This move reflects a broader shift in the consumer goods sector from a 'bigger-is-better' approach to 'targeted scale,' emphasizing the importance of dominating specific categories in response to increasing competition and consumer demand for sustainability.
- Market Challenges: With growth in major markets like China stalling, Unilever and other consumer giants are facing difficulties in organic growth, prompting a strategic focus on mergers and acquisitions to explore new growth avenues, particularly in high-margin core categories.
- Core Business Focus: Unilever's spinoff of its ice cream business last year, creating the world's largest standalone ice cream company Magnum, further illustrates the company's commitment to concentrating resources on high-growth areas, addressing the declining demand for branded goods in the market.
See More
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- Sales Growth Momentum: Since the launch of Operation Epic Fury on February 28, Costco's (COST) stock has risen by 1%, outperforming the S&P 500's 8.2% decline, reflecting investor confidence in its sales growth amid surging gas prices.
- California Market Impact: Approximately 26% of Costco's sales come from California, where gas prices have soared to an average of $6 per gallon, the highest in the nation, driving consumers to fill up at Costco and shop for groceries, thereby boosting overall sales.
- Future Sales Expectations: Analysts project a strong 10% sales growth for Costco in March, with even stronger results anticipated in the coming months, indicating that consumers' increased pursuit of value will further enhance performance.
- Historical Context Analysis: In spring 2022, the Ukraine conflict led to a 43% increase in retail gas prices, and despite consumer pressure, Costco's operating momentum improved, highlighting the significance of its price leadership in the market.
See More
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- Walmart Recession Signal: Walmart's stock has risen 10.9% YTD, contrasting with a 14.8% decline in the S&P Global Luxury Index, indicating a divergence that suggests potential economic downturn risks.
- Historical Warning Signs: The WRS is nearing its highest recorded level, similar to the pre-2008-09 financial crisis, indicating that signs of economic slowdown may be intensifying, particularly among lower- and middle-income consumers.
- Policy Expectations: While Paulsen anticipates no recession this year, he believes a significant economic slowdown is unfolding, which may necessitate additional economic policy accommodation and lower interest rates to mitigate emerging pressures.
- Labor Market Implications: Paulsen highlights that the WRS rose significantly before unemployment rates surged in the late 1990s, suggesting that current economic stresses may not yet be reflected in unemployment figures, indicating potential future labor market turbulence.
See More
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- Dow Jones Volatility: The Dow Jones Industrial Average briefly slipped into correction territory, down 10% from its previous high, but slightly rebounded on March 30, 2026, indicating market uncertainty that could lead to another drop.
- Chevron's Strong Performance: Chevron (CVX) has been the best-performing stock year-to-date, benefiting from skyrocketing oil and gas prices due to Iran's closure of the Strait of Hormuz, with a market cap of $420 billion and projected annual EPS and free cash flow growth exceeding 10%, making it a solid hedge for investors.
- Challenges for JPMorgan Chase: JPMorgan Chase (JPM) has struggled in 2026 as rising oil prices raise inflation concerns, yet it maintains a strong balance sheet with a market cap of $765 billion, positioning it well for potential economic downturns.
- Walmart as a Safe Haven: Walmart (WMT) has attracted investors during market volatility, with its stock rising year-to-date and a market cap of $985 billion, leveraging its low-price leadership and robust e-commerce platform to potentially outperform most stocks in a significant market pullback.
See More
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- Chevron's Strong Performance: Chevron (NYSE: CVX) has emerged as the best-performing stock in the Dow Jones Industrial Average due to Iran's effective closure of the Strait of Hormuz, with significant year-to-date gains and projected average annual earnings per share and free cash flow growth exceeding 10%, making it a top choice for investors.
- JPMorgan Chase's Resilience: Although JPMorgan Chase (NYSE: JPM) has underperformed in 2026, it has been named the best private bank globally, boasting a robust balance sheet that should provide resilience during a potential economic downturn, with a current price-to-earnings ratio of only 13.4, indicating undervaluation.
- Walmart as a Safe Haven: Walmart (NASDAQ: WMT) remains a favorite among investors during market volatility, with its stock rising year-to-date; its position as a low-price leader and strong e-commerce platform suggest it will outperform most stocks in a significant market pullback.
- Long-Term Investor Appeal: Despite not being recommended by The Motley Fool Stock Advisor, Chevron's strong performance and stable dividend yield of approximately 3.4% continue to make it attractive for long-term investors in an uncertain market environment.
See More
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- Market Validation: The deal's value exceeds Nebius's previous company valuation, marking a significant recognition of its status as an emerging cloud provider and proving the viability of its business model, which attracts increased investor interest.
- Technological Investment: Nebius will provide Meta with $12 billion worth of computing capacity using Nvidia's latest Vera Rubin chips, a technological choice that will significantly enhance Meta's competitiveness in the AI space, ensuring it stays ahead in technological advancements.
- Strategic Expansion: This agreement not only deepens the collaboration between Nebius and Meta but also complements other significant investments from Nvidia and Microsoft, further solidifying Nebius's critical role in the global AI infrastructure market.
See More
