Walmart Q2 Earnings Beat Estimates but Third-Quarter Guidance Falls Short

Walmart Inc. (NASDAQ:WMT) reported upbeat second-quarter earnings on Thursday but issued third-quarter guidance below estimates.

The company's adjusted earnings came in at 81 cents per share, beating the consensus estimate of 74 cents. Sales reached $187.9 billion, topping the $186.8 billion estimate.

For the third quarter, Walmart expects adjusted EPS of 62-64 cents, below the 68-cent estimate. It forecasts sales of $183.134-$184.468 billion, compared with the $188.339 billion estimate.

Walmart raised its fiscal 2027 adjusted EPS outlook to $2.80-$2.87 from $2.75-$2.85. The consensus estimate is $2.90. The company also raised its fiscal 2027 sales outlook to $734.656 billion-$741.720 billion from $731.124 billion-$738.188 billion.

The company's shares fell 9.2% to close at $103.84 on Thursday after the earnings announcement.

Analysts who made changes to their price targets on Walmart following the earnings announcement include BTIG analyst Robert Drbul, Baird analyst Peter Benedict, and RBC Capital analyst Steven Shemesh.