FMP
Walmart Stock Drops 6% as Fiscal 2026 Sales Outlook Disappoints
Feb 21, 2025 1:51 PM - Parth Sanghvi
Image credit: Caique Morais
Walmart (NYSE:WMT) shares tumbled more than 6% on Thursday after the retail giant projected a lower-than-expected sales outlook for its 2026 fiscal year. Despite strong holiday-season sales, concerns over inflation-hit consumers and macroeconomic uncertainties weighed on the stock.
Key Takeaways
- Weaker 2026 Sales Outlook: Walmart expects 3%-4% annual net sales growth, below analyst estimates of 4%.
- Stock Performance: Before the drop, Walmart stock had gained 15.6% YTD.
- Consumer Headwinds: Retail sales have softened amid higher inflation, economic uncertainty, and Trump's proposed tariffs.
- Mixed Q4 Results:
- U.S. comparable sales (ex-fuel) rose 4.9%, beating 4.15% expectations.
- Adjusted EPS came in at $0.66, slightly above estimates of $0.65.
- The company flagged negative currency effects impacting earnings.
What's Driving Walmart's Outlook?
- Inflationary Pressures: The latest hotter-than-expected U.S. inflation data suggests that consumers may tighten discretionary spending.
- Retail Sales Slowdown: A dip in monthly U.S. retail sales and declining consumer sentiment signals potential demand weakness.
- Leap Year Impact: Walmart noted that lapping the 2024 leap year would be a headwind for growth.
How Walmart Weathered the Storm
- Despite supply chain disruptions, bad weather, and rising egg prices, Walmart outperformed in holiday sales.
- GLP-1 obesity drug demand has boosted revenue, particularly in its pharmacy segment.
Relevant Market Data APIs
📊 Market Most Active - Track Walmart's trading volume as investors react to earnings.
📉 Earnings Calendar - Stay ahead of key earnings reports for retail giants like Walmart.
Conclusion
While Walmart's strong Q4 showed resilience, its muted 2026 outlook raises questions about consumer spending trends in a challenging economic environment. Investors should closely watch U.S. retail sales data, inflation trends, and potential policy shifts affecting the retail sector.
🚀 Stay ahead of market trends with Financial Modeling Prep APIs!
Other Blogs
May 27, 2024 3:30 PM - Rajnish Katharotiya
The best 5 GPU stocks other than NVDA
In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...
Jun 6, 2024 2:57 AM - Parth Sanghvi
DCF vs NPV: Which Valuation Method Should You Use?
When it comes to valuing an investment or a business, two of the most commonly used methods are Discounted Cash Flow (DCF) and Net Present Value (NPV). Both methods are essential tools in finance, but they serve slightly different purposes and are used in different contexts. This guide will explore ...
Jun 10, 2024 3:46 AM - Parth Sanghvi
Fixed Costs vs Variable Costs: Understanding Cost Structures
Understanding the difference between fixed and variable costs is essential for managing a business’s finances. These costs form the foundation of any cost structure and play a critical role in pricing, budgeting, and profit margin analysis. In this guide, we will explore what fixed and variable cost...
