WMT
Walmart did the classic “good quarter, but…” routine
Walmart came in with a pretty solid first quarter: revenue rose 7.3% to $177.8 billion, and adjusted earnings matched estimates at 66 cents a share. So far, so normal-big-retail-giant.
But the market’s favorite game is not “what happened?” It’s “what happens next?” And Walmart’s next-step commentary was a little less sparkly. The company guided second-quarter adjusted EPS to 72 cents to 74 cents, below the 75-cent Street consensus, and revenue to $182.8 billion to $184.6 billion, also under expectations.
Analysts heard the word “below” and reached for the calculator
That’s where the forecast cuts came in. BNP Paribas kept an Outperform rating but nudged its price target down from $147 to $146, while RBC Capital stayed Outperform and trimmed its target from $140 to $137.
Not exactly a crisis. More like a tiny haircut after a strong haircut appointment. But it does signal that even Walmart — the corporate equivalent of a reliable old SUV — isn’t immune when guidance comes in a touch soft.
Why investors should care
Walmart reaffirmed fiscal 2027 guidance, but that range still sits below Wall Street’s current models. Translation: investors are now asking whether this is just temporary caution or the beginning of a more conservative stretch.
- Shares fell 1.2% to $119.91 on Friday
- Q2 EPS guidance: 72 to 74 cents vs. 75-cent consensus
- Fiscal 2027 EPS guidance: $2.75 to $2.85 vs. $2.94 expected
- Fiscal 2027 revenue outlook: $731.1 billion to $738.2 billion vs. $742.6 billion expected
Big picture: Walmart is still Walmart — huge, resilient, and annoyingly good at being boring. But when a stock priced for perfection hears “guidance below expectations,” even the most dependable retailer can lose a little shine.