bullish

Billion

when

Major

<h3 id="key-takeaways">Key Takeaways</h3>
<ul>
 <li>Walmart delivered Q2 adjusted EPS of $0.81, surpassing the analyst consensus of $0.74, while revenue reached $187.9 billion, marking a 5.9% increase year-over-year.</li>
 <li>U.S. comparable sales for Walmart stores increased only 2.6%, falling short of the 3.67% forecast and representing the slowest domestic growth in six years.</li>
 <li>Shares of WMT plummeted approximately 7% during premarket hours, dropping below the stock’s opening price from the beginning of the year.</li>
 <li>The company issued Q3 adjusted EPS guidance ranging from $0.62 to $0.64, while raising its full-year outlook to $2.80 to $2.87 per share.</li>
 <li>Major Wall Street firms including Jefferies, RBC, UBS, and Evercore ISI maintained positive ratings, attributing the shortfall to broader economic conditions rather than company-specific challenges.</li>
</ul>
Shares of Walmart (WMT) tumbled approximately 7% during Thursday’s premarket session following the retail giant’s announcement that U.S. comparable sales expanded by 2.6%, significantly trailing the 3.67% Wall Street consensus. The disappointment pushed shares below their year-to-date starting point.
<a href="https://knockoutstocks.com/stock/WMT" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/WMT/embed" alt="WMT Stock Card"> Walmart Inc., WMT </a>
The retailer announced second-quarter adjusted earnings of $0.81 per share, exceeding analyst projections of $0.74. Total revenue hit $187.9 billion, climbing 5.9% compared to the prior year and surpassing the anticipated $186.75 billion.
While earnings exceeded expectations, the underwhelming U.S. comparable sales figure triggered the selloff. Mizuho’s David Bellinger characterized the results as a “worst-case scenario” and identified it as “one of the biggest misses in years from WMT.”
Company executives clarified that comparable sales would have reached 3.4% if health and wellness categories were excluded, noting that this segment faced headwinds from pharmacy-related deflation linked to maximum fair price regulations.
The retailer emphasized that it is strategically reducing prices to capture additional market share, positioning the sales slowdown as a deliberate reinvestment strategy instead of weakening consumer demand.
<h3 id="analyst-community-maintains-confidence">Analyst Community Maintains Confidence</h3>
Jefferies’ Corey Tarlowe reaffirmed his Buy recommendation, highlighting ongoing transaction volume expansion, widespread market share capture, and robust performance across e-commerce, advertising, marketplace operations, and membership programs.
Steven Shemesh from RBC Capital Markets observed that <a href="https://coincentral.com/walmart-wmt-stock-slides-6-despite-earnings-win-heres-why/" rel="noopener noreferrer nofollow">Walmart</a> achieved nearly 10% operating profit expansion when tariff refunds are excluded from calculations. He characterized the deceleration as reflective of “broader macro dynamics” instead of evidence that Walmart’s competitive gains are diminishing.
UBS’ Michael Lasser acknowledged the results will likely spark discussion but confirmed his firm’s continued optimistic stance. Evercore ISI’s Greg Melich maintained his Outperform rating while pointing out that annual sales guidance was upgraded to a range of 4.0% to 5.0%, compared to the previous 3.5% to 4.5%.
<h3 id="strategic-initiatives-continue-delivering-results">Strategic Initiatives Continue Delivering Results</h3>
Worldwide eCommerce revenue jumped 23%, powered by store-fulfilled pickup services, delivery options, and marketplace expansion. The company’s international advertising platform experienced remarkable 38% growth, with domestic advertising also climbing 38%.
Operating income surged 28.8%, or 17.4% when adjusted for constant currency. Gross profit margin improved by 96 basis points, partially attributed to tariff refunds collected during the quarter.
CFO John David Rainey indicated the retailer plans to reinvest those tariff refunds into enhancing customer experience and implementing additional pricing strategies during the latter half of the fiscal year.
Looking ahead to Q3, <a href="https://coincentral.com/todays-market-movers-walmart-guidance-disappoints-moderna-retreats-crypto-stocks-climb-thursday/" rel="noopener noreferrer nofollow">Walmart</a> projects net sales growth between 3.0% and 3.75% on a constant currency basis. Management highlighted an anticipated headwind exceeding 100 basis points resulting from a calendar shift of Flipkart’s Big Billion Days promotion between the third and fourth quarters.
The company elevated its full fiscal 2027 adjusted EPS outlook to a range of $2.80 to $2.87, up from the previous guidance of $2.75 to $2.85.
“Our team delivered another good quarter, and we continue to make steady progress on the long-term value drivers of our business,” stated John Furner, President and CEO of Walmart U.S.
The post <a href="https://blockonomi.com/walmart-wmt-stock-tumbles-7-despite-earnings-beat-analyst-perspectives/" rel="noopener noreferrer nofollow">Walmart (WMT) Stock Tumbles 7% Despite Earnings Beat: Analyst Perspectives</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Walmart (WMT) Stock Tumbles 7% Despite Earnings Beat: Analyst Perspectives

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