Walmart Crashes 9% as U.S. Sales Growth Hits Six-Year Low
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Walmart Inc. shares plummeted 9% on Thursday after the retailer reported its slowest U.S. comparable sales growth in six years, despite exceeding Wall Street's earnings expectations for the second quarter . The stock closed at $103.84, erasing roughly $81 billion from its market valuation, as investors focused on a 2.6% rise in U.S. comparable sales—the weakest since 2020 and below the 3.7% consensus forecast . Executives attributed the miss to lower prescription drug prices from federal Medicare negotiations, which created a roughly 80-basis-point headwind . Excluding health and wellness, core comparable sales grew 3.4% . The company's outlook for the third quarter also disappointed, with net sales growth forecast at 3% to 3.75%, lagging analyst estimates of 4.9% . Walmart raised its full-year earnings guidance to between $2.80 and $2.87 per share, roughly in line with or slightly below consensus of $2.90 . The retailer also confirmed it has received substantially all of a $2.9 billion tariff refund, which it plans to reinvest in price reductions, as customers face pressure from higher fuel costs .
Walmart Inc. shares plummeted 9% on Thursday after the retailer reported its slowest U.S. comparable sales growth in six years, despite exceeding Wall Street's earnings expectations for the second quarter . The stock closed at $103.84, erasing roughly $81 billion from its market valuation, as investors focused on a 2.6% rise in U.S. comparable sales—the weakest since 2020 and below the 3.7% consensus forecast . Executives attributed the miss to lower prescription drug prices from federal Medicare negotiations, which created a roughly 80-basis-point headwind . Excluding health and wellness, core comparable sales grew 3.4% . The company's outlook for the third quarter also disappointed, with net sales growth forecast at 3% to 3.75%, lagging analyst estimates of 4.9% . Walmart raised its full-year earnings guidance to between $2.80 and $2.87 per share, roughly in line with or slightly below consensus of $2.90 . The retailer also confirmed it has received substantially all of a $2.9 billion tariff refund, which it plans to reinvest in price reductions, as customers face pressure from higher fuel costs .
More context
Timeline
- On Feb 2026 Supreme Court ruled Trump’s emergency tariffs illegal, triggering refund process .
- · On May 2026 U.S. government began issuing billions in tariff refunds to importers .
- · On Jul 31 2026 Walmart's Q2 revenue hit $187.94B, up 5.9% year-over-year .
- · On Aug 19 2026 Walmart reported Q2 U.S. comparable sales rose 2.6% .
- · On Aug 20 2026 Walmart stock fell 9.15% to close at $103.84 per share .
- · On Aug 20 2026 Goldman Sachs and BofA cut price targets on Walmart stock .
- · Walmart expects Medicare drug price pressures to persist into next year .
- · In Q3 2026 Walmart forecasts net sales growth of 3% to 3.75% .
- · Walmart plans to use $2.9B tariff refund for price investments through yearend .
- · For fiscal 2027 Walmart expects 4% to 5% sales growth and $2.80-$2.87 EPS .
Why it matters
Immediate U.S. impact: Walmart's decline signals pressure on lower-income consumer spending. Long-term U.S. impact: Medicare drug price deflation may persistently pressure retail pharmacy revenue. Most affected groups: Lower-income shoppers, Walmart investors, and Medicare patients benefit from cheaper drugs. Reader priority: Distinguish pharmacy headwinds from underlying consumer demand for clarity.
Coverage notes
Left: Emphasizes consumer stress, fuel costs, and policy benefits like Medicare . Center: Presents earnings beat weighed against guidance miss and tariff refunds . Right: Highlights tariff refund as government interference, market overreaction to beat .
Primary report
Walmart Q2 earnings missed U.S. comps estimates and guidance.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
