Walmart miss hits shares despite guidance hike

Walmart (WMT) reported fiscal second-quarter results for the period ended July 31, 2026, delivering revenue of $187.9 billion. Adjusted earnings came in at $0.81 per share, as the company continued to generate substantial top-line growth across its operations. The quarter’s performance provided a detailed look at demand conditions in U.S. consumer spending and the retailer’s earnings power heading into the second half of its fiscal year.

Within the U.S. business, comparable-store sales excluding fuel increased 2.6%. This growth rate trailed market expectations, which had been for roughly 3.8% same-store sales growth, implying a shortfall of about 1.2 percentage points versus consensus. The softer-than-anticipated U.S. comp performance drew attention because it reflects the company’s core domestic operations and is a key metric watched by investors and analysts.

Despite the U.S. comparable-sales miss, Walmart (WMT) raised its full-year outlook for fiscal 2027. Management now projects sales growth of about 4%–5% for the year, signaling expectations for continued expansion in revenue. The company also lifted its full-year adjusted earnings per share guidance to a range of $2.80–$2.87, indicating confidence in its ability to translate sales into higher profit over the full fiscal period.

In contrast to the stronger full-year view, Walmart issued a more conservative outlook for the upcoming quarter. For the third quarter, the retailer guided to adjusted EPS between $0.62 and $0.64. This range sits below analyst expectations of around $0.68, suggesting that near-term profitability may face pressure even as the broader fiscal-year trajectory is expected to improve.

The combination of a U.S. comparable-sales miss and softer third-quarter earnings guidance, alongside an upgraded full-year outlook, led to a sharp market reaction. Walmart shares fell roughly 9% in trading around August 20–21, 2026, with intraday declines reaching as much as 9%–10%. The selloff erased an estimated $90–$92 billion in market value, underscoring how closely investors are tracking both consumer demand trends and near-term profit expectations.

The stock’s decline weighed on broader U.S. markets as major indexes moved lower amid renewed scrutiny of the consumer and retail sectors. With Walmart representing a large component of equity benchmarks and a bellwether for household spending, the earnings shortfall and guidance mix contributed to wider risk-off sentiment. Equity trading reflected heightened sensitivity to signs of slowing growth in key segments of the U.S. economy.