Walmart's Quarterly Results Exceed Expectations, Yet U.S. Sales Slowdown Weighs on Stock

Walmart published better-than-expected financial results for the second quarter, yet the company's stock fell approximately 8% in pre-market trading. Investors' primary concern was the lower-than-anticipated growth in comparable sales at U.S. stores.

The company's adjusted earnings per share came in at $0.81, while analysts had expected an average of $0.74. Revenue reached $187.9 billion, representing 5.9% year-over-year growth and also exceeding the $186.75 billion forecast.

Despite a strong quarter, Walmart's comparable sales at U.S. stores, excluding fuel, grew only 2.6%, whereas market consensus expected 3.67% growth. This figure represents the slowest pace of U.S. sales growth in approximately the last six years. David Bellinger, an analyst at Mizuho, called the result "the worst-case scenario."

In contrast, Walmart's global e-commerce sales increased 23%, particularly boosted by in-store order pickup and delivery services. The company's global advertising business expanded 38%, while Walmart's U.S. advertising revenue also grew 38%.

The company also improved its financial guidance. For fiscal year 2027, adjusted earnings per share are now expected in the range of $2.80–$2.87, compared to the previous guidance of $2.75–$2.85. The annual sales growth forecast also increased from 3.5%–4.5% to 4%–5%.

Walmart President and Chief Executive Officer John Furner stated that the company had another good quarter and continues to make progress toward long-term growth.

Additionally, the company noted that funds received related to tariffs in the second quarter will be used in the second half of the year to improve customer experience and pricing.