Walmart heads into Q2 earnings with e-commerce momentum and a stronger profit mix, but fuel costs, cautious consumers and a premium valuation temper the setup.
Walmart's investors are counting on the company's ad business to drive profits as same-store sales growth has cooled and the company's stock has fallen on a cautious annual outlook, Reuters reported Tuesday (Aug. 18).
Walmart reports their fiscal Q2 '27 before the opening bell on Thursday, August 20th, 2026. Current consensus per the LSEG data is expecting $0.74 in EPS on $186.8 in revenue for expected y-o-y growth of 5% and 8.8%, respectively. Walmart's longer-term revenue and EPS growth expectations of 5% (revenue) and high single- or low double-digit remain unchanged.
Walmart leans on 7,200 rollbacks and low prices to sustain traffic as fuel costs squeeze lower-income shoppers and spending patterns diverge.
Walmart maintains a hold rating due to its premium valuation and mixed technical outlook ahead of Q2 earnings. WMT's Q1 results showed solid revenue and eCommerce growth, but cautious guidance and elevated costs weighed on sentiment. Management reaffirmed FY 2027 guidance, projecting 3.5%-4.5% net sales growth and $2.75-$2.85 adjusted EPS, disappointing those hoping for upgrades.
Walmart (WMT) faces heightened scrutiny as it reports earnings Thursday, with concerns over U.S. comparable sales potentially missing expectations. Oppenheimer downgraded WMT to Perform, citing anticipated comps of 3% versus the Street's 3.8%, and moderating growth in General Merchandise and Health & Wellness.
Second-quarter earnings so far might be among the strongest on record — but companies like retailers and hotels haven't been major contributors to the blowout performance.
Now that inflation has cooled a bit, are shoppers still clipping coupons and leaving gas stations with half-filled tanks?
The Q2 earnings season is winding down, but many retail companies, including Walmart, have still yet to report. It and other big-box retailers have faced a difficult operating environment, with elevated fuel costs adding to consumers' financial burdens and increasing retailers' expenses.
Walmart Inc (NYSE:WMT, XETRA:WMT) is expected to post largely in-line second-quarter results, with investor focus centered on second-half guidance, the treatment of potential tariff refunds, and how much of that money gets reinvested into pricing, according to a note from Jefferies. Analysts at the firm said management has continued to emphasize a consistent strategy built around price leadership, including plans to funnel potential tariff refunds into lower prices to widen the retailer's price gaps against competitors and drive market share gains, particularly in consumables.
Amazon's latest Alexa demonstration looked almost trivial: photograph a refrigerator, ask what groceries are missing, and let artificial intelligence assemble the shopping list. But for Walmart, it represents a considerably bigger strategic problem.
Walmart (WMT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.