Walmart shares fell 9% on August 20, 2026, despite beating earnings estimates and raising full-year guidance, marking its worst earnings-day reaction in ten quarters. Adjusted EPS came in at $0.81 versus a $0.7413 consensus on revenue of $187.94 billion, up 6% year over year, and management lifted FY27 adjusted EPS guidance to $2.80 to $2.87 from $2.75 to $2.85. The selloff followed CFO John David Rainey's disclosure that operating income included a net benefit of approximately 750 basis points from tariff refunds, much of which was reinvested into more than 11,000 price rollbacks, leading to soft Q3 guidance of $0.62 to $0.64 adjusted EPS. Walmart also repurchased 25.7 million shares for $3.0 billion at an average price of $117.61, above the $103.84 close, while Target rose a day earlier after booking a $994 million pretax IEEPA refund worth $1.65 per share.
Walmart Inc.Walmart's stock fell 9% despite earnings beat and raised guidance, due to soft Q3 guidance and reinvestment of tariff refunds into price rollbacks
Target CorporationTarget rose after booking a $994 million pretax IEEPA refund worth $1.65 per share, a financial benefit
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