Walmart announced that its U.S. comparable sales grew 2.6% in the second quarter, marking the slowest pace in six years. The figure, which measures sales at stores open at least a year plus online sales tied to those locations, fell short of analysts’ 3.8% expectation.
Quarterly performance and earnings
For the three‑month period ending July 31, Walmart reported net income of $6.37 billion, or 80 cents per share. Adjusted earnings came in at 81 cents per share, beating the Wall Street consensus of 74 cents. Total sales reached $187.94 billion, slightly above the $186.62 billion forecast.
Despite the modest sales increase, the retailer’s U.S. e‑commerce segment grew 24%, a slowdown from the 26% growth recorded in the first quarter. Walmart continues to rely on its online platform as a key growth engine.
Factors influencing the slowdown
The company cited federal legislation that caps prices for certain high‑cost Medicare drugs sold through its pharmacies as a drag on sales. Excluding the wellness category, which includes pharmacy sales, comparable sales rose 3.4%.
Analysts noted that broader economic pressures, including higher gasoline and grocery prices, may be curbing consumer spending. Recent retail‑sales data for July showed weaker performance than expected, and a University of Michigan survey indicated growing consumer pessimism.
Guidance for the remainder of 2026
Walmart provided a cautious outlook for the third quarter, projecting earnings per share of 62 to 64 cents and sales growth of 3% to 3.5%, translating to $184.88 billion to $186.23 billion in revenue. Both metrics fall short of analyst expectations of 68 cents per share and $188.19 billion in sales.
For the full year, the retailer now expects earnings per share between $2.80 and $2.87 and sales growth of 4% to 5%, equating to $741.7 billion to $748.8 billion. Analysts had anticipated $2.90 per share and $752.06 billion in sales.
Market share trends
Walmart noted that its share of higher‑income households continues to grow, with the largest gains coming from families earning over $100,000 annually. The company’s vast customer base—more than 150 million shoppers weekly—remains a key barometer of U.S. consumer behavior.
Investors reacted to the mixed results, sending Walmart’s shares down about 6% in pre‑market trading on Thursday.
Original reporting: KTBS 3 (Shreveport) — read the source article.
