Walmart Shares Tumble 5% Despite Revenue Growth and Raised Outlook
Walmart's stock fell over 5% to $97.31 following its quarterly results. The company reported revenue of $177.40 billion, a 4.8% year-over-year increase, but saw an 8.2% decrease in operating income. Adjusted EPS was $0.68, missing market expectations. Despite this, Walmart showed strong performance in global eCommerce sales (25% growth), advertising business (46% increase), and membership income (15.3% rise globally). The company raised its fiscal year 2026 outlook for sales and EPS, indicating confidence in its long-term strategy. The stock's decline coincided with broader market weakness.

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Retail giant Walmart (NYSE: WMT) saw its shares plummet over 5% to a low of $97.31 following the release of its quarterly results, despite reporting revenue growth and an improved long-term outlook. The stock's decline coincided with broader market weakness, as major indices traded in negative territory.
Financial Performance
Walmart reported revenue of $177.40 billion for the quarter, representing a 4.8% increase year-over-year. However, the company's operating income decreased by 8.2%, primarily due to legal and restructuring costs. The adjusted earnings per share (EPS) came in at $0.68, falling short of market expectations.
Mixed Results and Future Outlook
Despite missing earnings estimates, Walmart demonstrated strong performance in key areas:
- Global eCommerce sales grew by 25%
- Global advertising business increased by 46%
- Membership income rose 15.3% globally
In light of these positive trends, Walmart raised its fiscal year 2026 outlook for both sales and EPS. This forward-looking stance suggests confidence in the company's long-term strategy and growth potential.
Market Reaction
The market's response to Walmart's results was decidedly negative, with the stock experiencing significant selling pressure. Over 10 million shares changed hands during the decline, indicating high trading volume and investor interest in the news.
Broader Market Context
Walmart's stock decline occurred against a backdrop of general market weakness, with major indices trading in negative territory. This suggests that while company-specific factors played a role in the stock's movement, broader market sentiment may have also contributed to the downward pressure.
Conclusion
While Walmart's quarterly results presented a mixed picture with strong revenue growth and improved performance in key areas, the market focused on the earnings miss and the decrease in operating income. The company's raised long-term outlook, however, indicates that management remains optimistic about Walmart's future prospects despite the current challenges.