Walmart Experiences 9% Stock Plunge Amidst Slowest US Sales Growth in Six Years
On August 20, 2026, Walmart (NYSE: WMT) sent shockwaves through the financial markets as its stock took a steep dive of nearly 9.5%. This marked its most severe single-day performance since May 2022. The surprising downturn occurred despite the retail behemoth reporting a robust earnings beat. Walmart announced adjusted earnings of $0.81 per share, significantly surpassing the $0.74 consensus estimate. The company also reported a total revenue of $187.9 billion, exceeding Wall Street’s forecast of approximately $186 billion.
The precipitous sell-off was spurred by a critical shortfall in U.S. comparable-store sales, which saw a meager growth of 2.6%. This figure fell considerably short of the 3.7% analysts had anticipated, marking the slowest pace of growth since Q4 of 2020. Walmart, the world’s leading retailer, conceded that customers are feeling the pinch of rising gas prices. Additionally, reduced pharmacy pricing, a result of Medicare drug-price negotiations, further impacted the results.
For Q3 2026, Walmart provided a guidance for adjusted earnings per share in the range of $0.62–$0.64, falling short of the $0.68 Street forecast. The retail sector contagion spread rapidly, causing shares of Target and Costco to also dip amidst concerns over the overall health of the American consumer. In response, Goldman Sachs analyst Kate McShane revised her price target for Walmart down to $130.00. Despite the upheaval, analysts at Jefferies and RBC Capital Markets upheld their Buy ratings, attributing their decision to a strong e-commerce growth of 23% and advertising growth of 38%.
Source: Yahoo Finance – Walmart Stock Drops 9%