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: 125.120
Low
119.00
Averages
125.75
High
136.00
Current: 125.120
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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- Increased Recession Risk: Consumer concerns about the economy are rising, highlighted by Target's 2.5% decline in same-store sales in Q4 2025, while Walmart's organic sales increased by 4.6% in the same period, indicating that higher oil and gas prices could exacerbate economic uncertainty, prompting consumers to cut back on spending and increasing the risk of a recession.
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- Consumer Response: As oil and gas prices rise, consumer concerns about the economy have intensified, highlighted by Target's 2.5% decline in same-store sales in Q4, while Walmart's focus on low prices led to a 4.6% increase in organic sales, indicating market divergence.
- Recession Risk: Higher energy costs may lead to reduced consumer spending, increasing the risk of recession, especially as rising uncertainty could prompt consumers to be more cautious in their spending habits.
- Long-term Investment Strategy: Although energy prices are currently rising, historical data shows that prices typically fall after spikes, suggesting that long-term investors should remain patient and attentive to cyclical market changes.
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- Walmart's Retail Strength: Walmart is also a Dividend King, having increased its dividends for 53 years; its vast retail network and everyday low price strategy enable it to attract customers during tough economic times, ensuring a stable revenue stream and dividend payment capability.
- Technological Innovation and E-commerce Growth: Walmart's proactive embrace of new technologies, particularly in the rapidly growing e-commerce sector and its partnership with OpenAI, demonstrates its ability to adapt to market changes, which will further drive its long-term growth and sustainability of dividends.
See More
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- Sales Decline: Target, a major U.S. retailer, experienced a 1.5% drop in sales and a 2.5% decline in organic sales in Q4 2025, indicating that inflation concerns are causing consumers to be more cautious, which puts pressure on the company's performance.
- Intensifying Competition: In stark contrast, Walmart saw a 4.6% increase in sales and same-store sales in the same quarter, demonstrating that its everyday low-price strategy resonates with consumers tightening their budgets, thereby eroding Target's market share.
- Impact of Energy Prices: The geopolitical risks in the Middle East have led to a rapid rise in oil prices, and while inflation concerns are not currently in the headlines, higher oil prices will directly affect consumers and increase transportation and production costs for companies, exacerbating inflationary pressures.
- Long-term Economic Concerns: Even if oil prices decline, inflation and economic worries have not disappeared; companies that were performing well before the geopolitical tensions are likely to remain competitive, while those struggling may continue to face challenges, reflecting a trend of market divergence.
See More
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- Declining Consumer Spending: In Q4 2025, Target's sales fell by 1.5% and organic sales dropped by 2.5%, indicating that consumers are tightening their budgets due to rising prices, which puts pressure on the company's market share.
- Walmart's Resilient Growth: In contrast, Walmart experienced a 4.6% sales increase in the same quarter, with same-store sales matching that growth, demonstrating that its everyday low-price strategy resonates more with budget-conscious consumers, thereby eroding Target's market position.
- Impact of Oil Price Volatility: The geopolitical conflict in the Middle East has led to rapid increases in oil prices; while inflation concerns have faded from headlines, higher oil prices will eventually affect consumers, as rising transportation and production costs will likely lead to increased product prices, exacerbating inflationary pressures.
- Long-term Economic Concerns: Even if oil prices decline, inflation and economic worries persist, suggesting that companies that were performing well before the geopolitical tensions are likely to remain competitive, while those struggling may continue to face challenges, necessitating cautious investor assessment of market dynamics.
See More
