Walmart stock falls with investors eyeing the gas pump

22 May 2026

New York, May 22, 2026, 08:03 EDT

Walmart Inc. is under pressure as U.S. trading approaches Friday. Shares fell 7.3% to $121.34 on Thursday, its steepest daily decline since 2023. That drop wiped out recent gains and left Walmart as the worst Dow Jones Industrial Average performer for the session. Investors sold after the retailer topped first-quarter revenue estimates.

Why it matters now: Walmart gives a wide look at U.S. consumer demand, with its grocery, fuel and basics business reaching tens of millions every week. Its latest report showed high fuel costs are still hitting, even for Walmart, the biggest big-box name. U.S. stock-index futures were slightly up Friday ahead of a long weekend. Markets will close Monday for Memorial Day.

Walmart set a tough benchmark. Reuters said this week Walmart’s stock jumped ahead of peers since the April 2025 tariffs, trading at about 43 times forward earnings. That’s based on forecasts for future profit. “When the economy is hurting or people feel like their wallet is stretched, they go to Walmart,” Morningstar’s Brett Husslein told Reuters. Reuters

Walmart reported a 7.3% rise in first-quarter revenue to $177.8 billion. Operating income climbed 5.0%. Global e-commerce sales were up 26%. Adjusted earnings per share were 66 cents. For the second quarter, Walmart expects net sales to rise 4% to 5% in constant currency and sees adjusted EPS between 72 cents and 74 cents. Full-year guidance stays the same. CEO John Furner said these numbers showed “better shopping experiences, a broader assortment, and faster delivery.” Walmart News & Leadership

Walmart U.S. said comparable sales rose 4.1%, tracking sales at stores open at least a year and online. Retail analyst Bruce Winder called it “slower than last year and recent trend” and said “may concern investors a little.” Axios

Walmart flagged rising fuel expenses in its supply and distribution network, with CFO John David Rainey saying the retailer is “not immune, not bulletproof” to broader economic pressures. The retailer’s operating income took a hit from those fuel costs. Stock strategist Bryan Hayes at Zacks Investment Research said holding steady on guidance “was not enough to push shares higher.” Reuters

Not only Walmart saw a read-through. Target raised its full-year sales outlook this week but kept a warning on the economy. CEO Michael Fiddelke said, “we will not confuse this progress with potential.” That’s important for Walmart holders, who are watching value traffic climb while the market keeps cutting profit risk. Reuters

There’s a clear risk if fuel costs stay high. Walmart can either absorb the hit, squeezing margins, or raise prices more, which could hurt store traffic. A bigger drop in spending from budget shoppers would put more pressure on Walmart’s pricing edge.

Still, the report didn’t show weaker demand. E-commerce, ad sales and membership fees all outpaced store growth again. The focus as trading gets going is if those better-margin areas can make up for a fuel bill investors weren’t eager to cover.

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Khadija Saeed is a financial markets reporter at TS2.tech. Her coverage ranges from stocks and technology to emerging industries and developments across global markets. She studied economics and finance at the London School of Economics and worked in market research before becoming a financial journalist. Follow Khadija Saeed on Google News.

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