Walmart stock tumbles 9% after cautious outlook disappoints Wall Street

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Started 22D · Updated 20D

Walmart reported its slowest U.S. comparable sales growth in six years, rising just 2.6% in the fiscal second quarter, missing analyst expectations and sending shares down as much as 9% . The miss, which Mizuho analyst David Bellinger called "one of the biggest misses in years," raised concerns about consumer spending as higher fuel prices squeeze households .

The numbers

U.S. comparable sales rose 2.6%, below the 3.5% FactSet consensus and the 3.8% LSEG forecast .
Total revenue climbed 5.9% to $187.94 billion, beating estimates, while adjusted EPS of 81 cents topped expectations .
Global e-commerce sales jumped 23%, with U.S. e-commerce up 24% .

Tariff refunds and price cuts

Walmart received $2.9 billion in tariff refunds, which boosted operating income by 750 basis points and funded price cuts on 11,000 items . CFO John David Rainey said the company will use the funds to lower prices, with effects expected in the third quarter .

Consumer strain

Executives cited rising gas prices—averaging $4.10 a gallon—as a key drag on spending. "When fuel prices increase and get above $4, perhaps there’s a psychological impact to that," Rainey said . Walmart expects $2 billion in incremental fuel costs this year .

Outlook and disagreement

Walmart raised its full-year net sales growth forecast to 4–5% and adjusted EPS to $2.80–$2.87 . However, sources differ on the severity: AP News frames the guidance as "cautious," while Fox Business highlights the raise as a sign of confidence . Analysts remain split, with some calling headwinds "transitory" and others warning of a broader slowdown .

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