Profit misses analyst expectations
Walmart (WMT) shares dropped more than 4% at the market open Thursday after the retail giant reported second-quarter earnings that fell short of expectations. The Arkansas-based company posted adjusted earnings per share of $0.68, missing the $0.73 forecast by analysts surveyed by Visible Alpha.
However, total revenue rose nearly 5% year-over-year to $177.40 billion, beating the $175.97 billion consensus. U.S. comparable sales grew 4.3%, slightly above the 4.1% estimate.
eCommerce strength offsets income drop
Global eCommerce sales surged 25%, driven by store-fulfilled pickup, delivery, and marketplace channels. Analysts had projected 17.2% growth for the segment.
Despite these gains, Walmart’s operating income fell over 8%, which the company attributed to “discrete legal and restructuring items.” This decline in profitability drew some concern from investors and analysts alike.
Outlook upgraded for full year
Walmart raised its full-year fiscal 2026 outlook. The company now expects revenue growth between 3.75% and 4.75%, and adjusted EPS between $2.52 and $2.62. For the current quarter, Walmart projected adjusted EPS of $0.58 to $0.60 and revenue growth in the same range — both above consensus estimates.
Prior to Thursday’s dip, Walmart stock had gained about 14% year-to-date, closing at $102.57. All 12 analysts tracked by Visible Alpha had rated the stock a buy.
Analyst perspective remains positive
“Net-net, we see some potential small pressure on the shares but the report in no way fundamentally alters the bull case, in our view,” JPMorgan analysts wrote in a client note. The firm’s strong digital growth and optimistic forward guidance continue to support investor confidence despite the earnings miss.
