WMT stock tumbles despite record holiday sales as Walmart’s forecast falls short of expectations - what investors need to know

WMT stock drops after Walmart earnings: Walmart stock (WMT) dropped more than 3% in premarket trading on Thursday, after the retailer reported strong holiday-quarter results and outlined its below-expectation forecast for the coming year under CEO John Furner.

WMT Stock Drops After Walmart Earnings and 2027 Forecast

The company posted overall revenue of $190.66 billion for the quarter, up 5.6% and slightly ahead of expectations. US same-store sales rose 4.6%, surpassing analyst projections of 4.2%, while online sales grew 27%, marking the 15th consecutive quarter of double-digit e-commerce growth, as per a Reuters report.

Walmart's Strong Holiday Sales and E-Commerce Growth Drive Revenue

Expedited store-fulfilled deliveries, including same-day and two-day shipping, jumped more than 50%, highlighting Walmart’s continuing strength in digital channels.


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Walmart CEO John Furner Focuses on Speed, Convenience, and Personalization

Furner, who previously led Walmart’s US business, emphasized the retailer’s focus on speed, convenience, and personalization for customers. He said, "The pace of change in retail is accelerating... For our customers and members, the future is fast, convenient, and personalized," as quoted by Reuters. Walmart also announced a new $30 billion share buyback plan.

WMT Stock Down After Walmart 2027 Forecast Slightly Below Wall Street Expectations

Looking ahead, Walmart expects consolidated net sales for fiscal 2027 to rise between 3.5% and 4.5%, slightly below analysts’ roughly 5% growth expectations. Adjusted earnings per share are projected at $2.75 to $2.85, below the $2.96 anticipated by Wall Street.

Walmart’s Market Value Surpasses $1 Trillion

Despite the stock dip, Walmart’s market value remains strong, having gained 22% over the past year and becoming the first US retailer to surpass $1 trillion.

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Walmart’s Key Customer Base: High-Income and Value-Conscious Shoppers

Its US unit, led by David Guggina, accounts for nearly 70% of total revenue, while high-income households and value-conscious shoppers have driven both in-store and online growth, as per the Reuters report.

Walmart’s performance highlights its resilience amid consumer retrenchment, with US retail sales excluding autos, gasoline, building materials, and food services easing 0.1% in December after a 0.2% gain in November, reflecting broader pressures from tariffs and higher goods costs.

FAQs

Why did Walmart stock drop despite strong sales?
Walmart’s forecast for fiscal 2027 came in slightly below analyst expectations, prompting the premarket dip.

How did Walmart perform in the holiday quarter?
Revenue rose 5.6%, US same-store sales increased 4.6%, and online sales grew 27%.