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August 21, 2025
WMT Earnings: Walmart (WMT) shares slid more than 4% on Thursday morning. The drop followed second-quarter earnings that fell short of expectations.
Even so, U.S. sales growth beat forecasts. Shoppers turned to Walmart’s low prices. Rising tariff concerns also made families more cautious with their spending.
On the earnings call, CEO Doug McMillon spoke about pricing in the U.S. He said the company is handling tariff-related cost pressures just as planned.
Walmart is working to keep prices low and stretch that commitment for as long as possible.
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According to McMillon, customer behavior in the U.S. has stayed steady. He noted there have been no major shifts in how people are shopping.
In the second quarter, U.S. same-store sales climbed 4.6%. That beat Wall Street’s 4.2% projection, based on Bloomberg data.
It also came in slightly above the 4.5% growth posted in the first quarter. Sam’s Club, Walmart’s membership-based business, delivered a 5.9% increase. The Street had been looking for 5.3%.
The company has updated its forecast for fiscal 2026. Net sales are now expected to grow between 3.75% and 4.75%. That marks an increase from the 3% to 4% range it projected last quarter.
Walmart's stock fell after its quarterly earnings came in below expectations. Adjusted earnings were $0.68 per share, missing the Street’s $0.74 forecast.
This marked the company’s first earnings miss since May 2022. Walmart said the shortfall was driven by one-time legal and restructuring charges.
The company reported revenue of $177.4 billion, beating Wall Street’s estimate of $176.05 billion. For the current quarter, adjusted earnings per share are expected to fall between $0.58 and $0.60.
Looking at the full year, Walmart projects adjusted earnings in the range of $2.52 to $2.62. Analysts had forecast $2.61.
Walmart pointed to strong results in grocery and health and wellness as key drivers of U.S. sales growth.
The company gained shoppers across income groups, with the sharpest increase among higher-income households.
Inflation in U.S. stores was 1.1% for the quarter on a like-for-like basis. Walmart said it is still working through the impact of tariff uncertainty.
In U.S. stores, grocery sales grew at a mid-single-digit pace. Health and wellness sales rose by a mid-teens percentage.
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Groceries account for about 60% of U.S. sales and are largely shielded from tariffs when sourced from the U.S., Mexico, or Canada.
Walmart is also strengthening its e-commerce and delivery operations. Its U.S. online business remained profitable in the second quarter after turning a profit in the first.
The company still expects prices to move higher in the back half of the year. CEO Doug McMillon explained that costs are rising as new inventory comes in at post-tariff levels.
He said the pressure will likely carry through the third and fourth quarters.
“Through the quarter, we’ll be keeping an eye on price gaps. We’ll also track gross margins and overall profitability,” the company said.
About two-thirds of Walmart’s products are sourced in the U.S. The rest, less than one-third, come from markets such as China, Mexico, Vietnam, India, and Canada.
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