Walmart Suffers Worst Single-Day Drop in Four Years After Slowest US Sales Growth in Six Years

Walmart shares fell roughly 9% on Thursday, erasing about $89 billion in market value in the company's worst trading session in four years, after its second-quarter results revealed US comparable-store sales growth of just 2.6%, the slowest pace in six years and below Wall Street expectations. The miss came despite Walmart beating revenue and adjusted earnings estimates and raising its full-year financial outlook, with the stock's decline driven instead by weaker-than-anticipated domestic same-store performance, a drag from its pharmacy and health-and-wellness segment, and third-quarter EPS guidance that came in below consensus. Walmart's CFO John David Rainey said the company plans to deploy its $2.9 billion in Trump tariff refunds to reduce product prices.

Bright spots included e-commerce sales up 24%, advertising revenue up 38%, and continued membership growth, while CEO John Furner highlighted that customers using the company's AI assistant Sparky spend 40% more per order, with Sparky usage up 70% year-over-year. Walmart also flagged that Flipkart's shift of its Big Billion Days sales event will weigh on Q3 international segment growth by more than 100 basis points. At least a dozen brokerages cut their price targets on the stock: JPMorgan lowered its target to $125 from $137, Morgan Stanley to $125 from $140, TD Cowen to $125 from $150, D.A.

Davidson to $132 from $150, Piper Sandler to $128 from $137, RBC to $131 from $137, Telsey Advisory to $130 from $140, BTIG to $140 from $145, Guggenheim to $130, and BMO, Truist, UBS, Wolfe Research, Baird, and Goldman Sachs also reduced targets. Despite the cuts, JPMorgan and Bank of America told clients to buy the dip, with JPMorgan noting shares are now cheaper than their historical norm, and Freedom Broker upgraded Walmart to Buy with a $124 price target. On the same day, Walmart announced it will begin accepting Apple Pay and Google Pay at select Walmart and Sam's Club locations starting August 24, with a full US rollout planned by year-end and gas stations to follow by mid-2027, ending more than a decade of holding out against the contactless payment platforms.

The company also opened its 100th company-owned electric vehicle fast-charging site, in Monument, Colorado. Separately, Chief Communications Officer Allyson Park announced she will leave the company early next year, with Walmart planning an external search for her replacement.