Walmart Stock Suffers Worst Day in Four Years After US Comparable Sales Miss by Widest Margin in Six Years

Walmart reported fiscal second-quarter revenue of $187.9 billion and adjusted EPS of $0.81, beating Wall Street estimates of $186.7 billion and $0.74, respectively. But the headline number that rattled markets was U.S. comparable sales growth of just 2.6% excluding fuel, the slowest pace since 2020 and far short of the 3.7% analysts had expected. Management attributed the shortfall primarily to falling pharmacy prices, which created a drag of roughly 80 to 125 basis points on comparable sales, and to high gasoline prices that are forcing shoppers to make trade-offs.

CEO Doug McMillon said $4-per-gallon gas is the threshold where consumers visibly pull back, while noting continued spending strength from higher-income households. Despite the topline miss, Walmart raised its full-year fiscal 2027 guidance, lifting adjusted EPS to a range of $2.80 to $2.87 from a prior $2.75 to $2.85, and guiding net sales growth of 4% to 5% in constant currency. Third-quarter adjusted EPS guidance of $0.62 to $0.64 came in below the $0.68 consensus, which compounded investor concern.

Walmart disclosed it is eligible for up to $2.9 billion in tariff refunds, though CFO John David Rainey told CNBC that less than $100 million has been received so far; the company said it plans to funnel those refunds into lower prices for shoppers, with adjustments expected to show up in the third quarter. Bright spots included 23% global e-commerce growth, 38% growth in the global advertising business, 17% growth in membership fee revenue, and an 8.8% revenue gain at Sam's Club. Usage of Walmart's AI shopping assistant Sparky rose 70% year over year, with users spending 40% more per order than non-users.

Shares fell roughly 9% to 10% on the day, the worst single-session decline since May 2022, dragging the Dow Jones Industrial Average down approximately 637 points and pulling competitor stocks including Target and Costco lower. The miss, described by one analyst as one of the biggest in years for the retailer, revived broad concern about the health of the U.S. consumer.