Walmart Q2 2026 Earnings Review: Walmart Stock Plunges 9% as Slowing Sales and High Fuel Costs Pressure Shoppers

WMT Q2 2026 Earnings Review

Walmart (WMT Aug 20, 2026, close, $103.84 -9.15%)

Walmart reported its weakest quarterly comparable-sales growth in six years on Thursday, warning that elevated gasoline prices are squeezing shoppers and signaling mounting pressure on U.S. consumers.

America’s largest retailer, widely viewed as an industry bellwether delivered stronger-than-expected quarterly results, with sales climbing nearly 6% to $187.9 billion - well ahead of the roughly $186 billion analysts had projected. The retailer also posted adjusted earnings of 81 cents per share, topping the 74-cent consensus estimate.

Walmart Q2 Key Earning Highlights

• Although Walmart raised its full-year sales and profit forecasts, saying aggressive price cuts would help drive demand later in the year, investors remained unconvinced. The company’s shares plunged as much as 10% to a nine-month low of $102.85 before closing more than 9% lower. The decline erased over $80 billion in market value and marked Walmart’s steepest one-day drop since May 2022.

• Walmart, the world’s largest retailer by revenue, has built its competitive edge on low prices for groceries and everyday essentials. However, its newly announced rollbacks on 11,000 products will be partly financed by $2.9 billion in tariff refunds—a one-time benefit. Competitors such as Target are adopting similar pricing strategies.

• Walmart’s U.S. same-store sales increased 2.6%, falling short of Wall Street’s 3.7% forecast. The result marked the retailer’s slowest quarterly growth in U.S. comparable-store sales since the fourth quarter of 2020.

• Lower pharmacy sales weighed on Walmart’s overall growth. The health and wellness segment was hurt by maximum fair price legislation, which permits Medicare to negotiate certain drug prices. Excluding that segment, Walmart’s core merchandise recorded stronger same-store sales growth of 3.4%.

• The company raised its full-year outlook, now forecasting earnings per share of $2.80 to $2.87, up from the previous range of $2.75 to $2.85. The company also expects revenue to grow 4% to 5%, compared with its earlier projection of 3.5% to 4.5%.

• WMT issued a cautious outlook for the third quarter, forecasting sales and adjusted earnings per share below analysts’ expectations. Management attributed the weaker guidance to a timing shift involving its Indian subsidiary, Flipkart, and its continued decision to channel tariff refunds into price investments aimed at offering lower prices to inflation-weary consumers.

• Walmart CFO John David Rainey urged investors to evaluate the company’s second- and third-quarter results together to better understand its underlying business growth.

Slowing Consumer Demand

There are other signs pointing to softening demand. U.S. retail sales fell unexpectedly in July, while gasoline prices have remained elevated for months. President Donald Trump last week warned consumers that fuel prices could remain high as the war in Iran drags on.

Walmart now anticipates fuel costs will be $2 billion higher than previously forecast. CFO John David Rainey said gasoline prices above $4 could affect consumer psychology and lead shoppers to make spending trade-offs. Meanwhile, store-traffic growth slowed to 1.5% in the latest quarter, down from 3% in the first quarter.

The Race to Cut Prices

The company executives urged investors to be patient, saying lower prices in grocery and general merchandise would take time to boost results. CFO John David Rainey recommended evaluating the second and third quarters together, while CEO John Furner said growing unit sales should ultimately help the retailer gain market share.

Walmart’s business model is built to perform during economic downturns, leading some analysts and investors to believe the retailer remains best positioned to prevail in a price war.

The retail giant has other tools to support lower prices, including its high-margin Walmart Connect advertising business, where sales climbed 43% year over year. Membership revenue also rose 17%. Overall comparable sales increased 2.6%, missing LSEG analysts’ 3.8% forecast, but growth would have reached 3.4% excluding the pharmacy segment, which was impacted by lower prices negotiated through the Inflation Reduction Act’s Maximum Fair Price program.

E-commerce remained a bright spot, with sales rising 24%. Walmart also reported that the number of items delivered within 30 minutes has doubled compared with the same period last year.

An Outlier Miss

The report marks an unusual setback for Walmart, which has long been known for consistently exceeding sales expectations and raising its forecasts. It was the first time in at least five years that the retailer’s same-store sales missed analysts’ expectations. Average spending per transaction rose just 1.1%, compared with a 3.1% increase a year earlier.

Walmart raised its fiscal 2027 outlook, projecting 4%–5% net sales growth and adjusted EPS of $2.80–$2.87, up from previous ranges of 3.5%–4.5% and $2.75–$2.85. However, it forecast third-quarter adjusted EPS of 62–64 cents, below analysts’ 68-cent estimate.

Analysts Expectation post Walmart (WMT) Q2 Earnings

• BofA Securities cut Walmart’s price target to $126 from $144 while maintaining its Buy rating.

• A Freedom Broker analyst upgraded Walmart from Hold to Buy and set a $124 price target.

• An analyst at Gordon Haskett downgraded Walmart (NASDAQ: WMT) from Buy to Accumulate and set a $110 price target.

SHARIAH Compliance Metrics of Walmart (WMT)

WMT is “Doubtful” based on AAOIFI methodology as of Q1 2026 report.

• Business Activity 82.36% Halal, Doubtful is 17.60%, and non-Halal is 0.04%.

• Interest-bearing securities and assets = 1.60% (Shariah-complaint is < 30%).

• Interest-bearing debt = 8.68% (Shariah-complaint is < 30%).

You can get a more detailed breakdown of Walmart Shariah status on its stock page.