Walmart stock tanks after it discloses second-quarter sales and profits in challenging tariff environment

Walmart has reported increases in second-quarter profits and sales Thursday despite facing a challenging tariff environment. The largest retail giant continues to pull in price-sensitive shoppers for everyday essentials like groceries.

The Bentonville, Arkansas-based company, also reported an increase in its annual profit and sales outlook. It's among the first group of major US retailers this week to report quarterly results that should shed more light on how consumers are coping with rising prices because of higher tariff costs.

The company said Thursday that it earned USD 7.03 billion, or 88 cents per share, for the three-month period ended July 31. That compares with USD 4.50 billion, or 56 cents per share, a year ago. Sales rose nearly 5 per cent to USD 177.40 billion, as per AP.


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Walmart stocks tank

Shares of Walmart fell about 2.5% in premarket trading Thursday after the giant retailer reported fiscal 2026 second-quarter profit below expectation. Walmart raised its fiscal 2026 outlooks for revenue and adjusted EPS, to 3.75% to 4.75% and $2.52 to $2.62, respectively, reported Investopedia.

Walmart said Thursday that it continues to see strong momentum in its U.S. business, even as higher prices weigh on shoppers. The retailer noted earlier this year that inflationary pressures began picking up in late April and accelerated in May. The company had warned that the financial impact would be felt more sharply in June and July as the back-to-school season gained pace.

For the latest quarter, Walmart reported adjusted earnings of 68 cents per share, excluding costs tied to legal matters and business restructuring. That fell short of Wall Street’s forecast of 73 cents per share on revenue of $175.93 billion, according to FactSet.

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Comparable sales in the U.S.—which include established stores and online channels—rose 4.6%, edging past the 4.5% increase recorded in the prior quarter. Growth was led by demand for groceries and health and wellness products. Meanwhile, global e-commerce sales jumped 25%, an improvement over the 22% rise in the fiscal first quarter.

Looking ahead, Walmart expects earnings of 58 to 60 cents per share for the current quarter, compared with analysts’ projections of 57 cents. The company also anticipates revenue growth of 3.75% to 4.75% in the period.

For the full fiscal year, Walmart raised its earnings outlook to a range of $2.52 to $2.62 per share, slightly higher than its earlier forecast of $2.50 to $2.60. Analysts are targeting $2.62 per share, according to FactSet. The retailer also lifted its annual sales growth projection to between 3.75% and 4.75%, up from its prior range of 3% to 4%.