Walmart Stock Drops 9.2% Amid Slowing U.S. Sales Growth
On August 20, Walmart (NASDAQ: WMT) reported a significant stock decline of 9.2%, marking its worst single-day drop since May 2022 and the fourth-largest in the past 15 years. Despite strong overall financial results—including $187.9 billion in revenue for Q2 FY2026, up 5.9% year-over-year—investors focused on a slowdown in U.S. comparable sales growth from 4.6% to just 2.6%. The deceleration was attributed partly to pharmacy deflation due to new drug-price regulations and rising fuel costs expected this year. Walmart raised its full-year outlook, now expecting fiscal-year sales growth of 4%-5%, up from a previous range of 3.5%-4.5%. Adjusted earnings per share are projected between $2.80-$2.87. However, the market reacted negatively to concerns about slowing consumer spending and margin pressures. Historically, Walmart's three larger drops in recent years have led to modest recoveries within a year—typically 6%–14%. Yet this time is different: shares are still down around 14% from their May drop after the first-quarter report. This suggests that investor sentiment may be more cautious due to broader macroeconomic concerns.
Tickers: $WMT
Topics: consumer_spending retail revenue_growth