Shares of Walmart were down on Thursday, closing 5 percent lower as the market focused on its second-quarter earnings missing analyst expectations instead of the better growth forecast for retail giant for the full-year.
The Arkansas-based company posted adjusted earnings per share (EPS) of USD0.68, below the USD0.73 projected by analysts. However, revenue came in at USD177.4 billion, up 4.8 percent year-on-year and better than consensus.
Despite the earnings-per-share being off target, Walmart raised its fiscal 2026 revenue growth guidance to 3.75 percent–4.75 percent and adjusted EPS to a range of USD2.52–USD2.62. The company also issued an upbeat forecast for the current quarter, expecting revenue growth of up to 4.75 percent and adjusted EPS of a much as USD0.60—both above analyst estimates.
Walmart chief executive officer Doug McMillon cited the strength of digital transformation as a key growth driver for the company.
“The top-line momentum we have in our business comes from how we’re innovating and executing,” McMillon said. “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.”
Walmart reported 25 percent growth in global eCommerce sales and a 31 percent increase in Walmart Connect, its U.S. advertising business. U.S. comparable sales rose 4.6 percent, led by strength in grocery and health and wellness. However, operating income declined 8.2 percent due to legal and restructuring costs.
Investors appeared to focus on the profit miss and margin pressures, sending shares lower, despite signs of healthy consumer demand and raised guidance.
