A Walmart in Ellsworth, Maine, on April 28, 2025 (Getty Images)

Walmart gives disappointing Q2 guidance, warns about stress among low-income consumers

The retailer reported earnings before the bell on Thursday.

5/21/26 7:38AM

Walmart, America’s largest retailer and a bellwether for the US consumer, dropped after it reported Q1 earnings results that hit Wall Street estimates but gave lukewarm guidance for the current quarter. The company warned that lower-income shoppers are showing signs of financial stress and that rising fuel costs could pressure prices and margins later this year.

For the three-month period ending in April, Walmart reported:

Adjusted earnings per share of $0.66, right in line with what analysts polled by FactSet were expecting. Walmart said it absorbed roughly $175 million in higher-than-expected fuel costs during the quarter.
Revenues of $177.8 billion, more than the $174.8 billion analysts were penciling in.

For the current quarter, Walmart said it expects:

Adjusted EPS to fall between $0.72 and $0.74, less than the $0.75 expected.
Sales to grow 4.0% to 5.0% year over year — a lower midpoint than the 4.9% growth the Street had guessed.

For its current fiscal year, the company reiterated its guidance, which is:

Adjusted EPS to hit between $2.75 and $2.85, less than the $2.90 analysts expect.
Sales to increase 3.5% to 4.5% year over year. Analysts had been forecasting about 5% annual revenue growth.

Walmart fell 7% by about 10:30 a.m. ET. If it holds those loses, it would be the worst day for the company since November 2023. The stock is up about 7.8% since the start of the year through Wednesday’s close.

CFO John Rainey said the company expects “somewhat higher retail price inflation” in the current quarter and the second half of the year.

Rainey also said it’s seeing “the high-income customer spending with confidence,” while “the lower income consumer is more budget conscious and perhaps navigating financial distress” — the latest sign America’s in a K-shaped economy.

He said the average number of gallons customers purchase at Walmart fuel stations recently fell below 10 for the first time since 2022.

“That’s an indication of stress,” he said.

Luke Kawa

7/13/26

Meet the newly public, Bezos-backed company that’s recreating the sun and stars

General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

J. Edward Moreno7/7/26

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

Luke Kawa

7/2/26

US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

Floridians Seek Employment Opportunities At Job Fair In Sunrise

Luke Kawa

7/1/26

Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings

Paige Oamek6/30/26

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

Revenue of $11.0 billion (estimate: $10.8 billion).
Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

Walmart gives disappointing Q2 guidance, warns about stress among low-income consumers

More Markets

SpaceX gets a wave of bullish ratings from Wall Street analysts

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Latest Stories