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Walmart stock (WMT) dropped sharply on August 20 after the retailer reported its fiscal second-quarter 2027 results. The headline numbers were not uniformly weak: total revenue increased 5.9% year oveWalmart stock (WMT) dropped sharply on August 20 after the retailer reported its fiscal second-quarter 2027 results. The headline numbers were not uniformly weak: total revenue increased 5.9% year ove

Why Is Walmart Stock Down? Q2 Earnings, Weak Sales Growth and WMT Outlook Explained

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Author: James Mitchell

2026/08/21 14:27

Key Takeaways

Walmart stock fell more than 9% after Q2 FY2027 results showed weaker-than-expected U.S. comparable sales growth. Despite strong e-commerce growth and a higher full-year outlook, investors focused on slowing consumer spending, fuel costs and a softer Q3 earnings forecast.

Walmart stock (WMT) dropped sharply on August 20 after the retailer reported its fiscal second-quarter 2027 results. The headline numbers were not uniformly weak: total revenue increased 5.9% year over year, Walmart U.S. e-commerce sales rose 24%, and the company raised its full-year sales and earnings outlook. Yet WMT stock still fell more than 9%, wiping out more than $80 billion in market value.

The reason was the gap between Walmart’s overall growth and what investors saw underneath it. Walmart U.S. comparable sales increased just 2.6% excluding fuel, below the roughly 3.8% growth analysts had expected and marking the company’s slowest comparable-sales growth in about six years. With consumers facing higher gasoline costs and broader economic uncertainty, the results raised a bigger question for investors: is Walmart beginning to feel a slowdown in U.S. consumer spending?

What to Know

Walmart stock fell more than 9% following its Q2 FY2027 earnings report.
Walmart U.S. comparable sales increased 2.6% excluding fuel, missing market expectations of roughly 3.8%.
Total revenue grew 5.9% year over year, while Walmart U.S. e-commerce sales increased 24%.
Walmart raised its FY2027 net sales growth outlook to 4%–5%.
Adjusted EPS guidance for FY2027 was raised to $2.80–$2.87.
Q3 adjusted EPS guidance of $0.62–$0.64 came in below the roughly $0.68 expected by the market.

Why Is Walmart Stock Down After Q2 Earnings?

The biggest reason Walmart stock fell was the comparable-sales miss.

According to Walmart’s Q2 FY2027 results, Walmart U.S. comparable sales grew 2.6% excluding fuel. That represented a clear slowdown from the 4.1% growth reported in Q1 FY2027. Walmart noted that pharmacy-related Maximum Fair Pricing legislation reduced the Q2 comparable-sales figure by approximately 125 basis points, but the slowdown still attracted investor attention.

The miss matters because Walmart is often viewed as one of the strongest large U.S. retailers during periods of economic uncertainty. Its scale, grocery exposure and value-oriented positioning can attract consumers trading down from more expensive retailers. A slowdown at Walmart therefore carries implications beyond WMT stock itself.

Reuters reported that higher gasoline prices were already affecting how customers allocated their spending. Walmart expects roughly $2 billion in additional fuel expenses, while management acknowledged that consumers are making more trade-offs between fuel and other purchases. That combination helped turn what looked like a reasonably strong earnings report into a warning signal about the health of the U.S. consumer.

Walmart Earnings Still Show Strong E-Commerce and Digital Growth

The selloff does not mean every part of Walmart’s Q2 earnings was weak.

Walmart reported total revenue growth of 5.9%, while global e-commerce sales increased 23%. Walmart U.S. e-commerce grew 24%, store-fulfilled delivery increased 40%, and marketplace net sales rose more than 50%. E-commerce now represents roughly 23% of Walmart U.S. sales.

Higher-margin businesses also continued to expand. Global advertising revenue increased 38%, while Walmart Connect in the U.S. grew 43% excluding VIZIO. Global membership fee revenue increased 17%.

These figures matter because Walmart has spent years trying to expand beyond the economics of traditional retail. Advertising, marketplace services, membership and fulfillment can potentially contribute higher-margin revenue while Walmart uses its physical store network to support digital fulfillment.

The Q2 results therefore presented investors with two different Walmart stories: slower growth in the core U.S. retail business, but continued expansion in digital and higher-margin businesses.

Walmart Raises FY2027 Outlook, So Why Did WMT Stock Still Fall?

Walmart actually became more optimistic about the full fiscal year.

The company now expects FY2027 net sales to grow 4%–5% and adjusted EPS to reach $2.80–$2.87. Walmart said its business model is becoming more durable as e-commerce economics improve and revenue from advertising, membership, marketplace and fulfillment services expands.

But markets trade on expectations rather than headline growth alone.

One concern was Walmart’s third-quarter outlook. The company expects adjusted EPS of $0.62–$0.64 for Q3, below the approximately $0.68 analysts had expected. Investors also questioned how sustainable current profit growth would be after Walmart received approximately $2.9 billion in tariff refunds and used part of that benefit to fund price reductions.

That helps explain the apparently contradictory reaction: Walmart raised its annual guidance, yet Walmart stock still suffered one of its sharpest single-day declines in years. Investors were looking past the full-year headline and focusing instead on slowing comparable sales, consumer pressure and the near-term earnings trajectory.

What Walmart Earnings Say About the U.S. Consumer

Walmart earnings are closely watched because the company serves around 280 million customers and members globally each week and has exposure across different U.S. income groups. Its results can therefore provide an important read on household spending conditions.

The Q2 report suggests consumers have not stopped spending, but they are becoming more selective. Walmart continued to gain market share across income cohorts, while demand for value and convenience remained strong. At the same time, higher fuel costs are forcing some households to make trade-offs.

The market treated that distinction seriously. Walmart's decline also weighed on other retail stocks, while the broader Dow Jones Industrial Average fell 1.32%, the S&P 500 lost 0.87% and the Nasdaq Composite declined 1.00% on August 20. Rising Treasury yields and oil prices added to concerns about inflation and consumer purchasing power.

For investors watching Walmart stock, the next question is therefore less about whether Walmart can continue growing and more about whether U.S. comparable-sales growth can stabilize as consumers navigate higher fuel costs and economic uncertainty.

Explore Walmart Stock Markets on MEXC

Eligible users can explore U.S. stocks through RealStocks on MEXC. For leveraged long or short exposure to Walmart stock, traders can also access the WMTSTOCK_USDT stock futures.. Product availability may vary by region.

FAQ

Why is Walmart stock down today?

Walmart stock fell more than 9% on August 20 after its Q2 FY2027 earnings report. The main concern was Walmart U.S. comparable sales growth of 2.6%, which came in below analyst expectations of roughly 3.8%. Investors also focused on weaker-than-expected Q3 earnings guidance and signs that higher fuel costs are affecting consumer spending.

Did Walmart beat earnings expectations?

Walmart delivered strong overall revenue growth and raised its full-year outlook, but U.S. comparable sales missed expectations. The market reaction shows that investors were more focused on the slowdown in underlying U.S. sales growth and the Q3 outlook than on the stronger full-year guidance.

What is Walmart's FY2027 outlook?

Walmart expects FY2027 net sales growth of 4%–5% and adjusted earnings per share of $2.80–$2.87. The company raised its outlook following Q2 results.

Is Walmart e-commerce still growing?

Yes. Walmart U.S. e-commerce sales grew 24% year over year in Q2 FY2027, while global e-commerce increased 23%. Store-fulfilled delivery and marketplace sales also recorded strong growth.

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