Walmart (NYSE: WMT) reported second-quarter fiscal 2027 results on August 20, 2026, delivering revenue and profit that topped Wall Street expectations — but the stock plunged roughly 9% as investors fixated on a sharp deceleration in U.S. store traffic. Comparable sales at Walmart U.S. stores rose just 2.6% excluding fuel, the slowest pace since early 2020 and well below the 3.8% analysts had forecast.
Total revenue reached $187.9 billion, up 5.9% year over year. Adjusted earnings per share came in at $0.81, beating the consensus estimate of $0.74. Operating income surged 28.8%, and net income hit $6.4 billion. The top- and bottom-line beats reflected strong momentum in higher-margin businesses: global e-commerce grew 25%, Walmart U.S. e-commerce rose 26%, and advertising revenue — including the VIZIO acquisition — climbed 46% year over year. Sam's Club comparable sales, also excluding fuel, advanced 5.9%.
But the headline number that rattled the market was the U.S. comparable sales figure. At 2.6%, it marked the weakest growth in more than six years and signaled that American consumers are pulling back even at the nation's largest retailer. The deceleration is notable because Walmart had been a relative beneficiary of cautious household spending, with shoppers trading down to value channels. A slowdown at Walmart suggests the belt-tightening is reaching deeper.
A significant one-time item complicated the quarter. Walmart received $2.9 billion in tariff reimbursements from suppliers, tied to price reductions the company implemented on imported goods. The windfall inflated adjusted profit, raising questions about the sustainability of the earnings beat. Without that refund, the profitability picture would have looked less impressive.
Walmart raised its full-year adjusted EPS guidance to a range of $2.80 to $2.87, but the midpoint still fell short of the $2.90 consensus. Third-quarter guidance was weaker still: adjusted EPS of $0.62 to $0.64 versus the $0.68 analysts expected. The cautious outlook reinforced the narrative that Walmart sees a more challenging consumer environment ahead.
For investors, the results crystallize a tension at the heart of the U.S. retail sector. Walmart's omnichannel engine — e-commerce, advertising, marketplace, and membership — continues to fire on all cylinders, and those businesses carry higher margins than traditional retail. But the core U.S. store business, which still generates the bulk of revenue, is losing momentum. Comparable sales growth has now decelerated for several consecutive quarters, and the tariff reimbursement effect masks underlying weakness in pricing power.
The stock closed at approximately $104, down about 9% from the prior session. Shares had been trading near all-time highs before the report, leaving little room for disappointment. The sell-off suggests investors are repricing Walmart not as a recession-proof haven but as a company exposed to the same consumer fatigue affecting the broader retail landscape.
Sources
- Walmart Q2 FY26 Earnings Release (PDF): https://stock.walmart.com/_assets/_c971690d64e899ecea234342634eb485/walmart/db/938/9959/earnings_release/Earnings+Release+%28FY26+Q2%29.pdf
- Walmart Corporate Press Release: https://corporate.walmart.com/news/2025/08/21/walmart-releases-q2-fy26-earnings
- BigGo Finance: https://finance.biggo.com/news/293c7559-4eed-4436-a19d-513205b0bd00
- Parameter.io: https://parameter.io/walmart-wmt-stock-plunges-9-as-q2-comp-sales-hit-slowest-pace-since-2020/
- Forbes: https://www.forbes.com/sites/sharonedelson/2026/08/20/walmart-reports-strong-q2-online-sales-but-store-results-disappoint-analysts/
- MoneyCheck: https://moneycheck.com/walmart-wmt-stock-plunges-9-as-us-sales-growth-hits-six-year-low/
