Walmart (WMT) stock is inching lower on Thursday morning even though the omnichannel retail behemoth posted market-beating earnings for its second financial quarter. The company recorded $187.9 billion in revenue — up 5.9% year-over-year — on $0.81 in earnings per share (EPS), representing a 19.1% increase versus the same quarter last year.
Following the post-earnings dip, Walmart stock is down roughly 23% versus its year-to-date high.
What’s Driving Walmart Stock Down Today
Despite beating top- and bottom-line estimates, WMT shares are under pressure primarily because of a rare slowdown in retail momentum.
Specifically, U.S. same-store sales came in up only 2.6% compared to last year, well below the consensus forecast of 3.5%.
In fact, Mizuho analyst David Bellinger dubbed this comparable store sales weakness “one of the biggest misses in years.”
The shortfall was largely attributed to weakness in Walmart’s pharmacy and healthcare department, driven mostly by government drug-price regulations rather than lower demand.
Cautious discretionary spending from price-sensitive consumers also added to pressure in Q2. Note that the post-earnings decline drove WMT below its 20-day moving average (MA), indicating the bearish momentum could sustain in the near-term.
Should You Buy the Dip in WMT Shares?
For long-term investors willing to look past the near-term noise, however, Walmart shares’ broader thesis remains intact.
The company’s high-margin e-commerce and advertising sales went up 23% and 38%, respectively, while management raised its full-year outlook for both net sales and operating income.
In fact, CFO John David Rainey explicitly told CNBC, “Our business is strong — we feel really good about the progress we’re making.”
All in all, with market share gains continuing among higher-income demographics and digital sales improving, today’s selloff may have created an attractive buying opportunity for those in it for the long haul.
Wall Street’s View on Walmart
Investors should also take heart in the fact that Wall Street analysts remain bullish as ever on WMT stock for the remainder of 2026.
According to Barchart, the consensus rating on Walmart sits at “Strong Buy” currently, with the mean price target of about $140 indicating potential upside of nearly 35% from here.
