Walmart’s Q3 EPS guidance of $0.63 misses estimates, dragging shares down as U.S. same-store sales grow at the slowest pace since Q4 2020.
Walmart shares plunged 8% to $105.45 after reporting U.S. same-store sales growth of 2.6%, the weakest since Q4 2020, and Q3 EPS guidance of $0.63, below the $0.68 consensus. Revenue rose 6% year over year to $187.9 billion, slightly above the $186 billion estimate.
The retail giant’s decelerating comps contrast with prior quarters, where growth remained above 4%. Advertising revenue climbed 38%, and marketplace sales surged 52%, but these gains failed to offset concerns over slowing consumer demand. The SPDR S&P Retail ETF fell just 1%, signaling a Walmart-specific reaction rather than broader sector weakness.
Target and Costco shares held steadier, with Target down less than 1% and Costco off 2%. The S&P 500 dipped 0.5%, highlighting Walmart’s outsized decline relative to peers and the broader market.