Shares in U.S. retail giant Walmart (WMT) slipped nearly 3% in pre-market trading after it missed Q2 earnings forecasts.
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However, it also revealed strong revenue growth and a lift in its outlook for 2026.
Profit Blow
The company reported adjusted earnings per share for the period of $0.68, missing forecasts of $0.74. Operating income dropped 8.2% to $7.2 billion.
Revenues rose 4.8% to $177.4 billion, surpassing expectations of around $175 billion. U.S. same-store sales rocked up 4.6%, helped by strong demand for grocery, health and wellness and more pricing rollbacks given the uncertain economic picture.
E-commerce sales were strong over the period with a 25% hike in demand globally and by 26% in the U.S. alone. This was led by store-fulfilled pickup & delivery and marketplace.
Walmart International also did well with sales up 5.5% to $31.2 billion. This was led by stronger demand in China, Mexico and India. Food and general merchandise products did well in these markets, with e-commerce sales surging 22%.
This continues a strong recent performance worldwide – as seen below.
Sam’s Club U.S. sales were up 3.4%, with comparative sales 5.9% higher. Membership income grew by 7.6%.
Bright Future
The company also, despite tariff headwinds and uncertain consumer confidence, hiked its 2026 annual forecasts. It now expects sales growth for the year of between 3.75% to 4.75%, compared with previous guidance of 3% to 4%.
Adjusted EPS is now tipped to come in at $2.52 per share to $2.62 per share, compared with previous expectations of $2.5 to $2.6.
“The top-line momentum we have in our business comes from how we’re innovating and executing. Connecting with our customers and members through digital experiences is helping to drive our business, and the way we’re deploying AI will make these experiences even better. We’re people-led and tech-powered, and I love how our associates continue to drive change and results for our company,” said Doug McMillon, president and chief executive of Walmart.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy forecast based on 22 Buy ratings. Its highest price target is $130. WMT stock’s consensus price target is $114.50, implying a 11.63% upside. These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
