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.
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- 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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- Market Sentiment Shift: The negative sentiment towards consumer stocks has intensified, likely stemming from recent disappointing economic data, leading investors to adopt a more cautious outlook on future consumption trends, thereby affecting overall market stability.
- Investment Strategy Reevaluation: In light of the decline in consumer stocks, investors may need to reassess their portfolios and consider reallocating funds to more defensive sectors to mitigate potential risks associated with an economic slowdown.
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- Market Share Gains: The retailer reported strong market share growth in the latest quarter, particularly among affluent households earning over $100,000 annually, indicating its expanding influence in a competitive retail landscape and reinforcing its market position.
- Tech-Driven Growth: Walmart's investment in AI initiatives, including a partnership with OpenAI for enhanced customer experiences, alongside expanding its online marketplace to over 500 million items and offering one-hour delivery, significantly boosts its competitive edge in the retail sector.
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- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
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- Market Performance: In 2025, all seven Magnificent Seven stocks saw gains, with six achieving double-digit increases, but the trend reversed in 2026, leading to a general market downturn and diminished investor confidence.
- Investment Dynamics: Berkshire Hathaway sold 77% of its Amazon stake in Q4 2025, while Bill Ackman's Pershing Square Capital increased its Meta holdings and Amazon exposure, indicating diverging investor sentiments towards these tech stocks.
- Future Outlook: Despite the downward pressure, analysts believe that Alphabet and Tesla will continue to attract investor interest in 2026, especially as their strategic relevance remains intact, making the risk-reward profile increasingly appealing.
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
Consumer Stocks Decline Thursday Afternoon
- Consumer Stock Weakness: Consumer stocks broadly declined on Thursday afternoon, reflecting market concerns over economic outlook, particularly amid rising inflation and interest rates, which could lead to a slowdown in consumer spending and impact profitability for related companies.
- Sector Impact Analysis: The poor performance of the State Street Consumer Staples Select Sector indicates a weakening investor confidence in the consumer goods sector, which may result in capital outflows from this area, further exacerbating downward pressure on stock prices.
- Market Sentiment Shift: The negative sentiment towards consumer stocks has intensified, likely stemming from recent disappointing economic data, leading investors to adopt a more cautious outlook on future consumption trends, thereby affecting overall market stability.
- Investment Strategy Reevaluation: In light of the decline in consumer stocks, investors may need to reassess their portfolios and consider reallocating funds to more defensive sectors to mitigate potential risks associated with an economic slowdown.
See More
Walmart's Stock Decline Post-Earnings Proves Short-Lived
- Conservative Guidance: Walmart's earnings per share forecast of $2.75 to $2.85 falls short of the $2.96 consensus, causing a 3.6% premarket drop; however, analysts suggest this conservative approach may be strategic, setting a low bar for future performance.
- Stock Recovery: Despite the initial decline, Walmart's shares rebounded to a 2.7% increase by the end of the trading day, reflecting investor confidence in the company's outlook, with analysts viewing any weakness as a buying opportunity.
- Market Share Gains: The retailer reported strong market share growth in the latest quarter, particularly among affluent households earning over $100,000 annually, indicating its expanding influence in a competitive retail landscape and reinforcing its market position.
- Tech-Driven Growth: Walmart's investment in AI initiatives, including a partnership with OpenAI for enhanced customer experiences, alongside expanding its online marketplace to over 500 million items and offering one-hour delivery, significantly boosts its competitive edge in the retail sector.
See More
Market Volatility and Investment Strategy Analysis
- Market Volatility: The S&P 500 fell on Thursday as tensions between the U.S. and Iran escalated, indicating that investors may be reducing equity exposure ahead of the weekend, reflecting concerns over geopolitical uncertainty.
- CrowdStrike Performance: Despite the broader market weakness, CrowdStrike's stock rose about 1%, although it remains down approximately 10% year-to-date; Jim Cramer believes that the increasing security risks associated with AI adoption will drive business growth, making it a top buy.
- Texas Roadhouse Earnings: Texas Roadhouse is set to report quarterly earnings after the bell, with expectations for strong same-store sales; however, Jim is concerned about declining margins due to beef inflation, with management guiding for a 7% commodity inflation rate in 2026.
- Boeing Order Situation: Boeing's stock fell nearly 1% despite signing a deal worth over $30 billion to sell around 100 aircraft to Vietnamese carriers, yet Jim remains steadfast in his confidence in Boeing's turnaround plan under CEO Kelly Ortberg's leadership.
See More
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
Magnificent Seven Stocks Decline Impacting Wealth in 2026
- Wealth Decline: As of early 2026, the combined wealth of the world's top ten billionaires has decreased by $45.6 billion year-to-date, illustrating the direct impact of the declining Magnificent Seven stocks on the fortunes of tech giants like Musk and Bezos.
- Market Performance: In 2025, all seven Magnificent Seven stocks saw gains, with six achieving double-digit increases, but the trend reversed in 2026, leading to a general market downturn and diminished investor confidence.
- Investment Dynamics: Berkshire Hathaway sold 77% of its Amazon stake in Q4 2025, while Bill Ackman's Pershing Square Capital increased its Meta holdings and Amazon exposure, indicating diverging investor sentiments towards these tech stocks.
- Future Outlook: Despite the downward pressure, analysts believe that Alphabet and Tesla will continue to attract investor interest in 2026, especially as their strategic relevance remains intact, making the risk-reward profile increasingly appealing.
See More
