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 fall
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 126.620
Low
119.00
Averages
125.75
High
136.00
Current: 126.620
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.
Walmart Q4 Earnings Beat Expectations
- Strong Earnings Report: Walmart's Q4 non-GAAP EPS of $0.74 exceeded expectations by $0.01, with revenue reaching $190.7 billion, a 5.6% year-over-year increase that surpassed market expectations by $2.38 billion, demonstrating the company's resilience amid economic challenges.
- Robust E-commerce Growth: Global eCommerce sales surged 24%, primarily driven by store-fulfilled pickup and delivery services, indicating Walmart's successful digital transformation and further solidifying its market position.
- Thriving Advertising Business: Walmart's global advertising revenue grew by 37%, with Walmart Connect in the U.S. up 41%, which not only enhances the company's revenue streams but also strengthens its competitive edge in the advertising market.
- Cautious Future Outlook: The company projects net sales growth of 3.5% to 4.5% for FY27, below the market consensus of 5.01%, with adjusted EPS expected to be between $2.75 and $2.85, reflecting uncertainty regarding future economic conditions.
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Walmart's Quarterly Results Draw Attention to Consumer Staples Sector
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- Industry Ranking: Despite this gain, Walmart ranks 16th among the S&P 500 consumer staples, failing to break into the top 10, which highlights its relative performance in a competitive market.
- Industry Trends: The consumer staples sector has benefited from a rotation towards companies perceived to offer stable earnings, durable cash flows, and pricing power, driving inflows into defensive stocks.
- Top Performing Stocks: Currently, Bunge Global (BG) leads the consumer staples sector with a year-to-date return of 36.7%, showcasing the strong growth potential within the industry.
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- Resilient Consumer Spending: During the earnings call, Walmart highlighted that consumer spending remains strong in the U.S., particularly driven by upper-income households, while lower-income households are experiencing pressure.
- Market Share Growth: New CEO John Furner noted that Walmart is gaining market share, especially in growth areas like Marketplace, advertising, and membership, with Walmart+ membership income rising by double digits during the holiday quarter.
- Cautious Outlook: While Walmart aims to outperform guidance, the company has adopted a cautious outlook for the new year due to various macroeconomic factors, indicating sensitivity to market conditions.
- Stock Buyback Plan: Walmart's announcement of a new $30 billion share repurchase authorization is seen as supportive of its stock, with positive trends in order volume and transaction count reinforcing its value proposition across income cohorts.
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Walmart (WMT) Q4 2026 Earnings Call Transcript
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Walmart's Disappointing Earnings Outlook Raises Concerns
- Walmart's Earnings Outlook: Walmart's full-year earnings guidance of $2.75 to $2.95 falls short of the $2.96 consensus, indicating challenges in resetting market expectations despite food inflation at just 1%, while authorizing a $30 billion stock buyback program to support its stock price.
- Boeing Order Growth: Boeing secured nearly 100 jet orders from three Vietnamese airlines, indicating a recovery in its backlog, and as CEO Kelly Ortberg's turnaround progresses, a breakout moment for earnings is anticipated, prompting investors to position themselves ahead of this potential growth.
- Deere's Profit Forecast Upgrade: Deere raised its 2026 profit forecast to between $4.5 billion and $5 billion, surpassing the FactSet consensus of $4.38 billion, reflecting a recovery in its construction and small agriculture segments, which led to a 6% increase in its stock price.
- eBay's Strong Performance: eBay reported a blowout quarter with a strong first-quarter outlook, resulting in a 6% stock increase, and announced the acquisition of secondhand fashion app Depop for $1.2 billion, showcasing the company's resurgence in the marketplace.
See More
Walmart's Fiscal 2027 Outlook Falls Short of Expectations
- Earnings Highlights: Walmart reported adjusted earnings per share of 74 cents, surpassing the market expectation of 73 cents, with sales reaching $190.7 billion, a 5.6% year-over-year increase, indicating robust growth driven by strong e-commerce and advertising performance.
- Segment Performance: Walmart U.S. revenue rose 4.6% year-over-year to $129.2 billion, bolstered by a 27% increase in e-commerce, while international sales grew 11.5% to $35.9 billion, primarily driven by Flipkart and China, showcasing recovery potential in global markets.
- Dividend Increase: The company raised its fiscal 2027 annual cash dividend to 99 cents per share, a 5% increase from last year, marking the 53rd consecutive year of dividend increases, reflecting strong cash flow and shareholder return strategies.
- Future Outlook: Walmart projects fiscal 2027 adjusted earnings between $2.75 and $2.85 per share, below analyst expectations of $2.96, with sales anticipated between $731.12 billion and $738.19 billion, indicating a cautious stance amid economic pressures.
See More
Walmart Q4 Earnings Beat Expectations
- Strong Earnings Report: Walmart's Q4 non-GAAP EPS of $0.74 exceeded expectations by $0.01, with revenue reaching $190.7 billion, a 5.6% year-over-year increase that surpassed market expectations by $2.38 billion, demonstrating the company's resilience amid economic challenges.
- Robust E-commerce Growth: Global eCommerce sales surged 24%, primarily driven by store-fulfilled pickup and delivery services, indicating Walmart's successful digital transformation and further solidifying its market position.
- Thriving Advertising Business: Walmart's global advertising revenue grew by 37%, with Walmart Connect in the U.S. up 41%, which not only enhances the company's revenue streams but also strengthens its competitive edge in the advertising market.
- Cautious Future Outlook: The company projects net sales growth of 3.5% to 4.5% for FY27, below the market consensus of 5.01%, with adjusted EPS expected to be between $2.75 and $2.85, reflecting uncertainty regarding future economic conditions.
See More
Walmart's Quarterly Results Draw Attention to Consumer Staples Sector
- Stock Performance: Walmart (WMT) has seen a 13.6% stock price increase in 2026, indicating steady investor demand for defensive stocks amid ongoing macroeconomic uncertainty.
- Industry Ranking: Despite this gain, Walmart ranks 16th among the S&P 500 consumer staples, failing to break into the top 10, which highlights its relative performance in a competitive market.
- Industry Trends: The consumer staples sector has benefited from a rotation towards companies perceived to offer stable earnings, durable cash flows, and pricing power, driving inflows into defensive stocks.
- Top Performing Stocks: Currently, Bunge Global (BG) leads the consumer staples sector with a year-to-date return of 36.7%, showcasing the strong growth potential within the industry.
See More
Walmart Earnings Call Highlights Resilient Consumer Spending
- Resilient Consumer Spending: During the earnings call, Walmart highlighted that consumer spending remains strong in the U.S., particularly driven by upper-income households, while lower-income households are experiencing pressure.
- Market Share Growth: New CEO John Furner noted that Walmart is gaining market share, especially in growth areas like Marketplace, advertising, and membership, with Walmart+ membership income rising by double digits during the holiday quarter.
- Cautious Outlook: While Walmart aims to outperform guidance, the company has adopted a cautious outlook for the new year due to various macroeconomic factors, indicating sensitivity to market conditions.
- Stock Buyback Plan: Walmart's announcement of a new $30 billion share repurchase authorization is seen as supportive of its stock, with positive trends in order volume and transaction count reinforcing its value proposition across income cohorts.
See More
Walmart (WMT) Q4 2026 Earnings Call Transcript
See More
Walmart's Disappointing Earnings Outlook Raises Concerns
- Walmart's Earnings Outlook: Walmart's full-year earnings guidance of $2.75 to $2.95 falls short of the $2.96 consensus, indicating challenges in resetting market expectations despite food inflation at just 1%, while authorizing a $30 billion stock buyback program to support its stock price.
- Boeing Order Growth: Boeing secured nearly 100 jet orders from three Vietnamese airlines, indicating a recovery in its backlog, and as CEO Kelly Ortberg's turnaround progresses, a breakout moment for earnings is anticipated, prompting investors to position themselves ahead of this potential growth.
- Deere's Profit Forecast Upgrade: Deere raised its 2026 profit forecast to between $4.5 billion and $5 billion, surpassing the FactSet consensus of $4.38 billion, reflecting a recovery in its construction and small agriculture segments, which led to a 6% increase in its stock price.
- eBay's Strong Performance: eBay reported a blowout quarter with a strong first-quarter outlook, resulting in a 6% stock increase, and announced the acquisition of secondhand fashion app Depop for $1.2 billion, showcasing the company's resurgence in the marketplace.
See More
Walmart's Fiscal 2027 Outlook Falls Short of Expectations
- Earnings Highlights: Walmart reported adjusted earnings per share of 74 cents, surpassing the market expectation of 73 cents, with sales reaching $190.7 billion, a 5.6% year-over-year increase, indicating robust growth driven by strong e-commerce and advertising performance.
- Segment Performance: Walmart U.S. revenue rose 4.6% year-over-year to $129.2 billion, bolstered by a 27% increase in e-commerce, while international sales grew 11.5% to $35.9 billion, primarily driven by Flipkart and China, showcasing recovery potential in global markets.
- Dividend Increase: The company raised its fiscal 2027 annual cash dividend to 99 cents per share, a 5% increase from last year, marking the 53rd consecutive year of dividend increases, reflecting strong cash flow and shareholder return strategies.
- Future Outlook: Walmart projects fiscal 2027 adjusted earnings between $2.75 and $2.85 per share, below analyst expectations of $2.96, with sales anticipated between $731.12 billion and $738.19 billion, indicating a cautious stance amid economic pressures.
See More
