Walmart (WMT) earnings today sparked plenty of conversation even before markets opened. The company is often seen as a window into how everyday shoppers are doing, and this quarter showed a bit of both good and bad. On one hand, sales growth was stronger than expected. On the other, profit came up short, which took some shine off the results.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Walmart’s Revenue Growth Pushes Past Expectations
Revenue for the quarter rose to $177.4 billion, a 4.8% increase compared with last year. That figure came in above what analysts had penciled in, which was just under $176 billion. Comparable sales growth was also impressive. U.S. Walmart stores rose 4.6%, and Sam’s Club delivered an even stronger 5.9% increase. It’s clear shoppers are still spending, especially in categories like groceries and health products where Walmart has a strong hold.
Walmart’s EPS falls short of Wall Street hopes
The area that disappointed was earnings per share. Adjusted EPS landed at $0.68, barely up from last year’s $0.67 but noticeably shy of the $0.73 Wall Street had expected. This small gap is still important, because it ended a long run of quarterly profit beats that investors had come to count on. Even though margins improved slightly to 24.5%, heavier costs from legal and restructuring expenses cut into overall profit.
Walmart Raises Guidance despite the Miss
Interestingly, management still raised its full-year outlook. Adjusted EPS for the year is now expected to be between $2.52 and $2.62, a little higher than the previous forecast. Net sales growth guidance was lifted too, to a range of 3.75%–4.75%. E-commerce remains a standout, growing about 25% worldwide, and Walmart clearly sees that digital side as a long-term growth engine. In other words, despite the miss this quarter, the company is signaling confidence in where it’s heading.
Share Repurchases Continue Behind the Scenes
Another detail tucked into the report was Walmart’s ongoing share repurchase program. These buybacks don’t always grab attention like earnings or sales, but they do matter. Reducing the number of shares on the market can support the stock price and reward investors over time. It’s a quiet but steady way Walmart continues to show confidence in its own business.
WMT Stock Reacts Cautiously
Investors, however, didn’t cheer right away. The stock slipped around 2.5% to 3% in pre-market trading after the release. That move reflects the tension between stronger sales on one side and weaker-than-hoped profits on the other. Still, with raised guidance and e-commerce growth looking solid, the broader message is that Walmart remains in a strong position, even if this particular earnings report wasn’t perfect.
Is Walmart a Buy, Sell, or Hold?
Wall Street analysts are still leaning heavily in Walmart’s favor. Out of 22 analysts who issued ratings over the past three months, 22 call it a Buy, zero rate it a Hold, and zero recommend a Sell. That unanimous view gives Walmart a “Strong Buy” consensus rating.
The average 12-month WMT price target sits at $114.50, which implies about 11.6% upside. These ratings are likely to change post the results.
