BENTONVILLE, Arkansas, August 22, 2026, 15:38 CDT
- Walmart saw its market value drop by approximately $92 billion over the course of earnings week.
- U.S. comparable sales increased by 2.6%, falling short of the 3.8% figure analysts had projected, according to Reuters.
- Digital, advertising, and membership continued to see robust growth, yet the shares are still valued at around 37 times earnings.
- Seven leading brokers reduced their targets on Friday but mostly maintained positive ratings.
Walmart Inc. NASDAQ:WMT saw its market value decline by about $92 billion last week as an unusual U.S. sales shortfall put pressure on the premium that investors have assigned to its reputation for nearly flawless execution.
The stock finished Friday at $103.70, marking a 10.0% decline since August 14. Most of the loss came Thursday, as shares dropped 9.15% following earnings. There was no recovery on Friday.
| Market measure | August 14 | August 21 | Change |
|---|---|---|---|
| Closing price | $115.27 | $103.70 | -10.0% |
| Implied equity value | About $920 billion | About $827 billion | About -$92 billion |
| 52-week high | $135.16 | Friday’s close was 23.3% beneath | |
The quarter showed strength in some areas. Revenue climbed 5.9% to $187.94 billion. Adjusted earnings came in at $0.81 per share, and global e-commerce rose 23%.
| Q2 FY27 measure | Reported | Reference point | Investor read |
|---|---|---|---|
| Total revenue | $187.94 billion; up 5.9% | $186.26 billion Zacks consensus | Beat |
| Adjusted EPS | $0.81; up 19.1% | $0.73 Zacks consensus | Beat |
| Walmart U.S. comparable sales | up 2.6% | up 3.8% LSEG consensus | Shortfalls by 1.2 points |
| Global e-commerce | up 23% | Year-ago basis | Strong |
| Global advertising | up 38% | Year-ago basis | Strong |
| Global membership fees | up 17% | Year-ago basis | Strong |
Walmart posted a 2.6% increase in comparable sales, marking its most modest rise in six years and falling short of the 3.8% forecast from LSEG. Adjustments in pharmacy pricing weighed on results, while store visits were up by only 1.5%.
The gap is significant as Walmart’s valuation continues to reflect expectations of sustained market share growth. Shares closed on Friday at about 37.4 times trailing earnings. With its established grocery segment, there is less flexibility for another operational lapse.
The company lifted its full-year outlook, though its third-quarter forecast appeared cautious. Sales are projected to increase by 3.0% to 3.75%. Adjusted EPS guidance stands at $0.62 to $0.64, falling short of the market expectation of about $0.68.
| Guidance measure | Q3 FY27 | FY27 | Change versus prior FY27 view |
|---|---|---|---|
| Net sales, constant currency | +3.0% to +3.75% | +4.0% to +5.0% | Up from +3.5% to +4.5% |
| Adjusted operating income | +2.0% to +4.0% | +7.0% to +8.5% | Up from +6.0% to +8.0% |
| Adjusted EPS | $0.62 to $0.64 | $2.80 to $2.87 | Up from $2.75 to $2.85 |
Chief Financial Officer John David Rainey advised investors to evaluate the second and third quarters in combination. Walmart plans to allocate outstanding tariff refunds towards investing in prices and customers. Additionally, moving a Flipkart event removes over one point from anticipated growth in the third quarter.
The sell-side reaction was cautious rather than bearish. After the release, seven firms lowered their targets, though the majority kept Buy, Overweight or Outperform ratings.
| Firm | Rating | New target | Old target | Upside from $103.70 |
|---|---|---|---|---|
| Goldman Sachs | Buy | $130 | $141 | 25.4% |
| UBS | Buy | $130 | $141 | 25.4% |
| Argus | Buy | $130 | $145 | 25.4% |
| BofA Securities | Buy | $126 | $144 | 21.5% |
| JPMorgan | Overweight | $125 | $137 | 20.5% |
| Wolfe Research | Outperform | $115 | $133 | 10.9% |
| Deutsche Bank | Hold | $113 | $120 | 9.0% |
The reductions decreased anticipated returns but did not change the overall long-term outlook. UBS analyst Michael Lasser stated the report would “flame the debate,” but maintained a positive stance. Reuters report; JPMorgan target; UBS target
On Friday, peers showed a stronger rebound. Costco Wholesale Corp. NASDAQ:COST advanced 1.52%, Target Corp. NYSE:TGT climbed 4.54%, and Kroger Co. NYSE:KR was up 2.81%. Walmart eased 0.13%, and Amazon.com Inc. NASDAQ:AMZN declined 0.57%.
| Retailer | Friday move | Read-through |
|---|---|---|
| Target | +4.54% | Led gains among competitors |
| Kroger | +2.81% | Exceeded other food retailers |
| Costco | +1.52% | Showed resilience in the retail sector |
| Walmart | -0.13% | Did not recover after downturn |
| Amazon | -0.57% | Ongoing weakness in e-commerce |
Walmart launches Tap to Pay at some U.S. Walmart and Sam’s Club outlets starting Monday, offering a new operational catalyst. The service will expand to all Walmart and Sam’s Club locations in the U.S. by the end of the year. Management has not provided any financial projections for the initiative.
The investor question is more straightforward. Walmart needs to demonstrate that digital earnings and advertising revenue make up for softer core sales. Introducing an easier checkout option does not resolve that issue.
Risks: Reduced fuel expenses, deflation in the pharmacy segment, and price investments linked to tariffs could continue to weigh on sales or margins. Improved traffic, accelerated growth in digital profitability, or a clearer third quarter performance could help regain the valuation premium.
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