European Investor
20 Aug 2026, 14:03
Walmart Stock Falls 9% Premarket Despite Revenue Growth as Earnings Disappoint
Walmart (NASDAQ: WMT) shares fell about 9% Thursday despite reporting solid second-quarter revenue growth and strong e-commerce performance, as investors focused on earnings that fell short of market expectations and continued tariff-related uncertainty.
Revenue Grows 5.9%, E-Commerce Jumps 23%
Second-quarter revenue increased 5.9% to $187.9 billion, or 5.1% in constant currency.
Global e-commerce sales jumped 23%, supported by store-fulfilled pickup and delivery and marketplace growth. Walmart's global advertising business increased 38%, while membership fee revenue grew 17%.
Operating income rose 28.8%, or 17.4% on an adjusted constant-currency basis, helped partly by tariff refunds. Adjusted EPS came in at $0.81.
Earnings and Tariff Concerns Pressure WMT
Despite strong top-line growth, the market reaction suggests investors were disappointed with profitability relative to expectations. Walmart's adjusted EPS of $0.81 was below Wall Street expectations, overshadowing the strong revenue performance.
Tariffs also remain an important issue. Walmart said operating income benefited from tariff refunds during the quarter, partially offset by price investments. The company plans to prioritize remaining tariff refunds toward further price investments, potentially limiting the benefit to future earnings.
Walmart reiterated its fiscal 2027 outlook and issued third-quarter guidance, but the combination of an earnings miss, elevated inventory and continued tariff-related margin uncertainty appears to be driving WMT's 9% decline.
Walmart (NASDAQ: WMT) shares fell about 9% Thursday despite reporting solid second-quarter revenue growth and strong e-commerce performance, as investors focused on earnings that fell short of market expectations and continued tariff-related uncertainty.
Revenue Grows 5.9%, E-Commerce Jumps 23%
Second-quarter revenue increased 5.9% to $187.9 billion, or 5.1% in constant currency.
Global e-commerce sales jumped 23%, supported by store-fulfilled pickup and delivery and marketplace growth. Walmart's global advertising business increased 38%, while membership fee revenue grew 17%.
Operating income rose 28.8%, or 17.4% on an adjusted constant-currency basis, helped partly by tariff refunds. Adjusted EPS came in at $0.81.
Earnings and Tariff Concerns Pressure WMT
Despite strong top-line growth, the market reaction suggests investors were disappointed with profitability relative to expectations. Walmart's adjusted EPS of $0.81 was below Wall Street expectations, overshadowing the strong revenue performance.
Tariffs also remain an important issue. Walmart said operating income benefited from tariff refunds during the quarter, partially offset by price investments. The company plans to prioritize remaining tariff refunds toward further price investments, potentially limiting the benefit to future earnings.
Walmart reiterated its fiscal 2027 outlook and issued third-quarter guidance, but the combination of an earnings miss, elevated inventory and continued tariff-related margin uncertainty appears to be driving WMT's 9% decline.
