Walmart delivered a double beat and raised its full-year outlook, yet shares fell more than 7% in early trading. Total revenue of $187.9 billion rose 5.9% and topped the Zacks Consensus Estimate of $186.3 billion, while adjusted EPS of $0.81 crushed the $0.73 consensus by nearly 11%. Management lifted fiscal 2027 guidance across the board, but the market focused on a sharp deceleration in U.S. comparable sales to 2.6% excluding fuel, down from 4.6% a year ago and 4.1% last quarter, and on third-quarter guidance implying flat to roughly 3% EPS growth. CFO John David Rainey said the second quarter was flattered by tariff refunds and the third quarter will be depressed, encouraging investors to consider the two quarters together. Target, which reported a day earlier, grew comparable sales 3.8% and traffic 3.6%, outpacing Walmart's 1.5% traffic growth and reversing a multi-year share-gain narrative.
Walmart Inc.Walmart beat earnings and raised guidance, but shares fell on decelerating U.S. comps and weak Q3 EPS guidance.
Target CorporationTarget's comparable sales and traffic growth outpaced Walmart's, indicating stronger consumer demand for Target.
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