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Walmart Stock Declines Sharply Following Disappointing Outlook

August 21, 2026Pablo Navarro4 мин

Walmart is anticipated to reveal its fiscal second-quarter earnings before the market opens on Thursday. This release will provide the latest insights into the financial health of American consumers.

The retail giant, which has focused on offering value to lower-income customers while also attracting higher-income shoppers, has largely navigated macroeconomic challenges. However, the company has previously noted an increasing disparity between different income groups.

As the largest retailer in the U.S., Walmart offers a distinct perspective on consumer behavior patterns.

According to a survey of analysts conducted by LSEG, the company's performance is expected to be as follows:

  • Earnings Per Share (EPS): Projected at 74 cents.
  • Revenue: Expected to reach $186.77 billion.

In the previous quarter, the retailer issued a less optimistic outlook for the year than Wall Street had anticipated. This was attributed to surging gas prices and declining consumer confidence. That quarter marked only the third time in sixteen quarters that Walmart did not surpass its quarterly earnings estimates.

John David Rainey, Chief Financial Officer, had previously suggested to CNBC that higher tax refunds might have partially offset some of the pressure on consumers in the early months of the year.

"It's something we are monitoring closely, and that expectation is already incorporated into our guidance for the second quarter," Rainey had stated.

Analysts at Bernstein noted in a late July report that they believe Walmart is experiencing a deceleration in comparable sales growth. This slowdown is potentially due to "lapping tariff-driven price increases," which had previously boosted revenue.

"Combined with discussions of price reductions by grocers, weak read-across from competitors, and persistent inflationary pressures on lower-income consumers, this has resulted in a heightened level of uncertainty," they wrote.

Nevertheless, the analysts maintain that Walmart remains in a "strong fundamental position" regarding its pricing, product assortment, and delivery services.

The company is also expected to provide details on how tariff refunds impacted its business during the quarter.

Rival retailer Target reported on Wednesday that its quarterly earnings were positively affected by a $752 million boost to net earnings, equivalent to $1.65 per share, from tariff refunds. Home improvement retailers Home Depot and Lowe's also announced increased earnings due to these refunds. Home Depot specifically mentioned that $685 million of its refunds were utilized to decrease the cost of goods sold.

English Translation:

Walmart Stock Tumbles 9% After Outlook Disappoints Wall Street

Walmart is projected to announce its fiscal second-quarter earnings before the market opens on Thursday, offering its latest assessment of the U.S. consumer's economic health.

The retailer, which has been focusing on value for its lower-income customer base while also appealing to higher-income shoppers, has largely remained unaffected by macroeconomic pressures. However, the company has previously indicated that it is observing a widening gap between different income demographics.

As the largest U.S. retailer, Walmart possesses a unique vantage point from which to observe consumer behavior.

Based on an analyst survey by LSEG, the company's expected performance is as follows:

  • Earnings Per Share (EPS): Expected at 74 cents.
  • Revenue: Expected at $186.77 billion.

In the preceding quarter, the retailer issued a less optimistic annual outlook than Wall Street had anticipated, citing soaring gas prices and diminished consumer confidence. That fiscal first quarter was only the third instance in sixteen quarters where Walmart did not exceed quarterly earnings expectations.

Chief Financial Officer John David Rainey had previously told CNBC that he believed higher tax refunds may have "muted" some of the consumer pressure during the initial months of the year.

"It's something that we are keeping a close eye on, but that expectation is built into our guidance for the second quarter," Rainey stated at the time.

Analysts at Bernstein wrote in a late July note that they believe Walmart is experiencing a slowdown in comparable sales due to "lapping tariff-driven price increases," which had previously boosted revenue.

"This, combined with price cut discussions from grocers, weak read-across from peers, and ongoing inflationary pressure on the low-income consumer, has created an elevated level of uncertainty," they elaborated.

Nonetheless, the analysts affirmed that they continue to see Walmart in "a strong fundamental position" with its pricing, assortment, and delivery capabilities.

The retailer is also expected to provide some commentary on how tariff refunds influenced its business during the quarter.

Competitor Target announced on Wednesday that its quarterly results included a $752 million boost to net earnings, or $1.65 per share, attributed to tariff refunds. Home improvement retailers Home Depot and Lowe's also reported increases in earnings from these refunds, with Home Depot noting that $685 million of its refunds were applied to reduce the cost of goods sold.