Walmart Stock Drops On Weak Q2 Profit, Slower U.S. Comps Growth, Despite Positive Outlook

(RTTNews) - Shares of Walmart Inc. were losing around 7 percent in the pre-market activity on the NYSE, after the retail behemoth reported Thursday lower profit in its second quarter and slower growth in U.S. comparable sales, despite strong eCommerce performance.

Further, the company issued positive third-quarter outlook, and lifted fiscal 2027 forecast.

John David Rainey, Walmart Inc. executive vice president and chief financial officer, stated, "Our business model is only getting stronger and more durable, and we're pleased to raise our guidance for the year. For Q3 sales guidance, we expect a headwind of over 100bps to growth related to a timing shift of Flipkart's Big Billion Days between Q3 and Q4. Our operating income outlook reflects the continued prioritization of tariff refunds received in Q2 into customer experience and price investments in the second half."

Rainey further urged to consider second-quarter and third-quarter performance together to assess the underlying growth of the business.

Looking ahead for the third quarter, the company projects adjusted earnings per share to be $0.62 to $0.64, compared to last year's $0.62.

Adjusted operating income is expected to grow 2.0 percent to 4.0 percent, with net sales growth of 3.0 percent to 3.75 percent, all in constant currency.

Further, for fiscal 2027, the company now expects adjusted earnings per share to be $2.80 to $2.87, with adjusted operating income growth of 7.0 percent to 8.5 percent, and net sales growth of 4.0 percent to 5.0 percent.

Walmart previously projected adjusted earnings per share between $2.75 and $2.85, with adjusted operating income growth of 6.0 percent to 8.0 percent and net sales growth of 3.5 percent to 4.5 percent from last year at constant currency.

In fiscal 2026, adjusted earnings per share were $2.64, adjusted operating income was $31.0 billion and net sales were $706.4 billion.

In the second quarter, net income attributable to Walmart dropped 9.4 percent to $6.366 billion from last year's $7.026 billion. Earnings per share fell 9.1 percent to $0.80 from $0.88 last year.

Adjusted earnings per share were $0.81.

Operating income, however, climbed 28.8 percent, year-over-year to $9.383 billion, and adjusted operating income grew 17.4 percent in constant currency to $9.248 billion.

Total revenues grew 5.9 percent to $187.937 billion from $177.402 billion last year. On a constant currency basis, revenues grew 5.1 percent.

Net sales increased 5.9 percent to $186.100 billion from $175.750 billion a year ago.

Walmart U.S. net sales of $125.2 billion increased 3.5 percent from last year, mainly reflecting continued strong momentum in eCommerce and broad-based share gains.

Walmart U.S. comparable sales, including fuel, grew 3.1 percent, compared to last year's increase of 4.5 percent. The growth was 2.6 percent excluding fuel, led by growth in transactions, compared to a 4.6 percent increase last year.

Walmart International net sales went up 12.8 percent year-over-year to $35.2 billion.

Sam's Club U.S. net sales were $25.7 billion, up 8.8 percent from last year, and the increase was 4.5 percent excluding fuel.

Sam's Club U.S. comparable sales, including fuel, increased 8.5 percent. The growth was 4.4 percent excluding fuel, compared to a growth of 5.9 percent last year.

Global eCommerce sales grew 23 percent, led by store-fulfilled pickup & delivery and marketplace

Global advertising business climbed 38 percent, with strength across segments. Walmart U.S. advertising went up 38 percent.

Membership fee revenue grew 17 percent globally

In pre-market activity, the shares were losing around 7.25 percent, trading at $106.01.

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