GET DAILY SIGNALSWhy Is Walmart (WMT) Stock Down -7.88% Today?
Key Takeaways
- Shares of Walmart fell roughly 7.88% to $105.29 in intraday trading, down from a prior close of $114.30.
- The decline followed second-quarter fiscal 2027 results that beat on revenue and profit but missed sharply on U.S. comparable sales growth.
- U.S. comparable sales rose just 2.6% excluding fuel, the slowest pace in more than six years and well below the roughly 3.67% consensus estimate.
- Forward guidance disappointed, with third-quarter adjusted EPS guided to $0.62–$0.64 versus the $0.68 analysts expected.
- Federal drug-price negotiations weighed on the pharmacy business, an 80-basis-point headwind to U.S. comparable sales.
- Investors are now watching whether consumer-spending softness and heightened retail competition pressure growth in the coming quarters.
Opening Summary
Walmart Inc. (WMT), the world's largest retailer and a closely watched barometer of U.S. consumer health, saw its stock slide roughly 7.88% in Thursday's session. The shares traded at $105.29, down $9.01 from the previous session's closing price of $114.30. The selloff came after the Bentonville, Arkansas-based company reported fiscal second-quarter results that topped expectations on revenue and earnings but revealed meaningfully slower growth in its core U.S. store business, alongside weaker-than-anticipated guidance for the current quarter. The market reaction underscored investor concern that Walmart's domestic growth momentum is cooling even as the broader economy shows signs of strain.
Earnings Results and Guidance Miss
The headline numbers were strong: total revenue rose 5.9% year over year to $187.9 billion, and adjusted earnings per share came in at $0.81, comfortably ahead of the $0.74 consensus. Yet shares plunged because the market focused on what came next. The company guided third-quarter adjusted EPS to a range of $0.62 to $0.64, below the roughly $0.68 analysts had projected, and flagged a more than 100-basis-point headwind from a timing shift in Flipkart's Big Billion Days promotional event.
For the full fiscal year, Walmart raised its adjusted EPS outlook to $2.80 to $2.87, up from $2.75 to $2.85, and lifted its net-sales growth forecast to 4% to 5% in constant currency. But even the upgraded full-year midpoint of about $2.84 remained below the roughly $2.90 Wall Street had been modeling, reinforcing a "beat-and-miss" narrative that punished the stock.
U.S. Comparable Sales Slow to a Six-Year Low
The most damaging data point was Walmart U.S. comparable sales excluding fuel, which grew only 2.6%, the slowest rate in more than six years and below even the most pessimistic analyst expectations. Transaction counts held up, but average ticket growth slowed to 1.1%, signaling that shoppers are becoming more cautious and spending less per visit. The miss was striking for a company that has routinely outpaced forecasts, and analysts described the print as one of Walmart's biggest shortfalls in years.
Pharmacy and Drug-Price Pressures
A key factor behind the comparable-sales slowdown was the health and wellness segment, which imposed an 80-basis-point headwind. Federal drug-price negotiations under the Inflation Reduction Act have pushed down prices on certain high-cost medications, reducing pharmacy revenue. Excluding health and wellness, U.S. comparable sales would have risen a healthier 3.4%. Management has described the pharmacy drag as transitory but expects it to persist into next year.
Consumer and Competitive Headwinds
The results arrived amid broader concerns about U.S. consumer resilience. Elevated gasoline prices have pressured lower-income households, consumer confidence dipped in August, and the labor market has shown signs of softening. Meanwhile, the competitive landscape has intensified, with peers such as TGT, COST, and KR sharpening their pricing strategies to capture share. Walmart's higher-margin growth engines — global e-commerce sales up 23% and advertising revenue up 38% — provided offsetting strength, but were not enough to assuage investor worries about slowing core retail momentum.
Market Context and Trading Activity
Trading activity was heavy as investors digested the report, with elevated volume relative to typical sessions reflecting the significance of the earnings-driven move. The decline in WMT weighed on the consumer staples and broad retail complex, diverging from a market already contending with geopolitical tensions and macro uncertainty. The sharp single-day drop also pushed the stock through key technical levels and effectively erased much of its year-to-date gain, underscoring the intensity of the repositioning among institutional holders.
What Comes Next for WMT
Looking ahead, investors will scrutinize whether Walmart's U.S. comparable-sales growth stabilizes as the pharmacy headwind eases and whether the company's decision to reinvest tariff refunds into lower prices supports traffic without eroding margins. Upcoming quarters will test the durability of e-commerce and advertising momentum, while broader macro data on inflation, gasoline prices, and consumer confidence will shape sentiment. Competitive dynamics from discount and grocery rivals, along with the ongoing consumer trade-down cycle, remain key risks to monitor.
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WMT's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for WMT turned positive on October 07, 2026. Looking at past instances where WMT's MACD turned positive, the stock continued to rise in 31 of 47 cases over the following month. The odds of a continued upward trend are 66%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on WMT as a result. In 47 of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 64%.
WMT moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for WMT crossed bullishly above the 50-day moving average on October 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +5.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in 212 of 370 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
The Aroon Indicator entered an Uptrend today. In 200 of 363 cases where WMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 55%.
Bearish Trend Analysis
The 10-day RSI Indicator for WMT moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 56 similar instances where the indicator moved out of overbought territory. In 25 of the 56 cases, the stock moved lower in the following days. This puts the odds of a move lower at 45%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 25 of 73 cases where WMT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 34%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WMT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 36%.
WMT broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 11 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 23 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 42 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating fairly steady price growth. WMT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: WMT's P/B Ratio (10.137) is slightly higher than the industry average of (5.834). WMT has a moderately high P/E Ratio (45.314) as compared to the industry average of (24.535). WMT's Projected Growth (PEG Ratio) (4.175) is slightly higher than the industry average of (2.171). Dividend Yield (0.008) settles around the average of (0.010) among similar stocks. P/S Ratio (1.169) is also within normal values, averaging (1.008).
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