Walmart Raises Its Outlook, but Six-Year-Low U.S. Sales Growth Sends Shares Down

Walmart delivered a quarter that looked strong at first glance and complicated on closer inspection. The retailer reported $187.9 billion in second-quarter fiscal 2027 revenue, an increase of 5.9% from a year earlier, and raised its full-year sales forecast. Investors focused instead on slowing growth in its core U.S. business, sending the shares sharply lower after the results.

Adjusted earnings reached 81 cents a share, above the 74 cents expected by analysts cited in market coverage. The company also lifted its outlook for annual net sales growth to a range of 4% to 5%, up from 3.5% to 4.5%. Those numbers show that Walmart’s global scale and broad merchandise mix are still producing growth in a cautious consumer environment.

The pressure point was Walmart U.S. comparable sales excluding fuel, which increased 2.6%. That was the division’s slowest growth rate in roughly six years and fell short of expectations near 3.5%. The gap mattered because comparable sales show how established stores and digital operations are performing without the boost that comes simply from opening more locations.

Walmart noted that its underlying U.S. momentum looked stronger when wellness was excluded, with comparable sales up 3.4% on that basis. Lower drug prices, including the effect of capped Medicare prices, reduced reported sales dollars in the health category even when customer demand did not necessarily weaken at the same pace. That distinction helped explain the slowdown, but it did not erase investor concern.

The market reaction was severe: Walmart shares fell about 9% after the report. A decline of that size shows how demanding expectations had become for a company often viewed as a defensive winner. Walmart attracts shoppers across income levels and has gained business by emphasizing value, so even a modest deceleration can raise questions about the health of the consumer and the limits of recent market-share gains.

Other parts of the report were more encouraging. International operations posted double-digit sales growth in important categories, and e-commerce continued to support the company’s broader expansion. Walmart has spent heavily on fulfillment, advertising and technology, turning stores into pickup and delivery hubs while using its online marketplace to widen selection beyond what any single location can carry.

Management also faces a difficult pricing environment. Tariffs, transportation expenses and supplier costs can increase the price of imported goods, while Walmart’s brand promise depends on keeping prices low. The company has said tariff-related refunds have been reinvested in price, a choice that can strengthen customer loyalty but may limit how much benefit reaches near-term profit.

The quarterly result arrives at a sensitive moment for U.S. retailers. Households are still spending, but many remain selective after years of higher prices. They may shift toward groceries and essentials, delay discretionary purchases or trade down to lower-cost options. Walmart can benefit from those moves, yet its size means it also provides an unusually broad reading on demand across food, apparel, electronics and household goods.

The raised forecast suggests executives believe the business can maintain momentum through the rest of the fiscal year. Still, guidance is not a guarantee. Holiday demand, employment, inflation and tariff policy can all change the sales mix quickly. The company must also balance investments in faster delivery and digital services with the discipline investors expect from a mature retailer.

For competitors, the message is mixed. Walmart remains a formidable price and logistics rival with the resources to defend market share. At the same time, the slower comparable-sales figure shows that even the largest chains are not insulated from consumer fatigue or category-specific price changes. Retailers will watch whether Walmart responds with heavier promotions, sharper grocery pricing or more spending on member benefits.

The next quarter will help determine whether the slowdown was mainly a temporary effect from lower pharmacy prices or an early signal of softer demand. Investors will look for a rebound in U.S. comparable sales, continued e-commerce gains and evidence that price investment is supporting traffic without damaging profitability. Walmart beat expectations and raised its outlook, but the stock reaction made clear that the market now wants stronger growth as well.