Dear Walmart Stock Fans, Mark Your Calendars for August 20

Earnings season is in full swing, and it’s always a big deal for investors. It is when companies have to show their cards, and one weak quarter or cautious outlook can quickly shake up a stock. The numbers matter, but so does what management says about the road ahead. That makes Aug. 20 an important date for Walmart (WMT) shareholders, when the retail giant is set to report its fiscal 2027 Q2 results before the market opens. Wall Street is leaning bullish, with analysts expecting Walmart to post growth on both the top and bottom lines.

But WMT stock is still sitting well below its 52-week high, leaving investors looking for something more than just a decent quarter. Solid guidance could be the shot in the arm the shares need. And that is where this earnings report gets interesting.

Walmart has traditionally been viewed as one of the market’s defensive names. During difficult economies, consumers tighten their belts, although they still need groceries, household essentials and other everyday basics. But this time around, even that defensive shield is being tested.

The pressure became clear in Q1. As gasoline prices climbed, shoppers with already-stretched budgets had less room to spend, while higher fuel expenses also started eating into Walmart’s own margins. Management flagged signs of softer spending among lower-income customers and suggested that persistent cost pressures could eventually make their way into prices. Its cautious Q2 outlook disappointed the market, and those pressures may not have eased much.

So, what’s in store? Let’s take a closer look at what investors need to know before Aug. 20.

About Walmart Stock

Most people have heard of Walmart, and chances are, many have walked through its doors at some point. It may have started as a traditional discount retailer in Arkansas, but it has come a long way since those early days. Today, Walmart is one of the world’s biggest retail and technology-driven companies, serving nearly 280 million customers every week through more than 10,900 stores and online platforms across 19 countries. Its bread-and-butter formula has always been to keep prices low and make everyday shopping convenient, whether customers walk into a store or shop online.

But Walmart did not stop there. Over the past few years, the company has poured billions of dollars into automation, artificial intelligence, faster delivery, and digital advertising, pushing well beyond its big-box roots to keep pace with the e-commerce race.

The retail giant looked almost unstoppable for a while. Earlier this year, it crossed the $1 trillion market-cap milestone, becoming the first major brick-and-mortar retailer to reach that level. Although its valuation has since cooled, Walmart still commands a hefty market cap of $897 billion.

WMT stock had a pretty strong run into the spring, but the story changed after the company’s fiscal Q1 2027 earnings report in May. Shares climbed to an all-time high of $135.15, only to lose momentum as investors digested management’s cautious comments. The reaction was swift, with shares falling 7.27% since the earnings report and now sitting about 16.8% below that May peak.

WMT stock is still up 8.36% over the past 52 weeks, although it has gained just 1.08% so far in 2026. During the year, shares slipped as low as $106.79 in July before recovering, but the stock has struggled to regain its earlier footing.

A big part of the problem was expectations. Walmart left its full-year sales, operating income, and earnings guidance unchanged, with all three coming in below Wall Street’s estimates. With the stock carrying a lofty valuation, investors were looking for an upward guidance revision to help justify the premium multiple. When that didn’t happen, some investors decided it was time to take money off the table.

The 14-day RSI is 49.22, suggesting WMT is neither overbought nor oversold. Meanwhile, the MACD oscillator is showing early signs of improvement, with the MACD line recently moving above the signal line and the histogram turning positive. For now, momentum may be stabilizing rather than completely running out of steam.

Walmart’s recent pullback may have taken some heat out of the stock, but it has not exactly made WMT a bargain. The stock is priced at 38.77 times forward adjusted price-to-earnings and 1.25 times sales, both looking rich compared with sector averages and Walmart’s own historical levels.

However, the dividend gives long-term investors something on which to hang their hat. Walmart has increased its dividend for 52 consecutive years, putting it firmly in the elite Dividend Kings club. The company currently pays $0.99 per share annually, distributed through quarterly payments. But the dividend yield is only around 0.89%, so this is hardly an income-heavy play. Still, that long track record of consistent payouts offers a little extra stability while investors wait to see whether Walmart can get its growth story back on track.

A Closer Look at Walmart’s Q1 Numbers

Walmart’s revenue for Q1 climbed 7% year-over-year (YOY) to $177.8 billion, while adjusted EPS rose 8.2% annually to $0.66. Both beat Wall Street’s expectations, showing that Walmart can still keep the wheels turning even as inflation and higher fuel costs squeeze shoppers.

A lot of that growth came from Walmart’s digital engine. U.S. sales benefited from stronger e-commerce demand and the company’s growing use of stores as fulfillment hubs. Store-fulfilled deliveries have more than doubled over the past two years, and more than 36% of those orders arrived within three hours in Q1. That speed is helping Walmart’s omnichannel strategy gain traction, while the company continues to win market share in groceries and general merchandise, particularly among higher-income shoppers.

The digital momentum did not stop there. Global e-commerce sales jumped 26%, with online operations now accounting for 23% of total net sales. Walmart’s advertising business was another bright spot, growing 37% worldwide and 36% in the U.S., while membership fee income climbed 17.4%.

Walmart ended the quarter with $10.7 billion in cash and cash equivalents and $58.1 billion in total debt. Operating cash flow slipped to $4.7 billion, while free cash flow turned negative at $1.9 billion, largely because the company is spending heavily on automation, delivery infrastructure, and omnichannel expansion. Walmart also bought back $2.1 billion of its own shares during the quarter.

The problem was not really the quarter that just ended. It was what Walmart had to say about the road ahead. The company continues to attract shoppers across income groups with low prices, quick delivery, and a huge product selection. But higher gasoline prices and the U.S.-Iran war have added another layer of pressure, particularly for budget-conscious consumers.

Management expects sales growth for the May-to-July quarter to slow to around 4% to 5%, with adjusted EPS between $0.72 and $0.74. That cautious outlook rattled investors and raised fresh questions about the strength of the U.S. consumer. 

Walmart also left its fiscal 2027 guidance unchanged, estimating net sales growth of 3.5% to 4.5%, adjusted operating income growth of 6% to 8%, and adjusted EPS of $2.75 to $2.85. On paper, nothing was broken. But with Walmart carrying a hefty valuation, investors were looking for something more – perhaps an upgrade, not a status quo. And when they did not get it, the stock took the hit.

With the company gearing up to release its Q2 2027 earnings report next Thursday, analysts tracking Walmart anticipate revenue for the quarter to be around $186.9 billion, while adjusted EPS is anticipated to be $0.73, up 7.4% YOY. For fiscal 2027, adjusted EPS is expected to rise 9.1% annually to $2.88, and surge by another 13.2% YOY to 3.26 in fiscal 2028.

What Do Analysts Expect for Walmart Stock?

Last week, Oppenheimer took a step back on Walmart ahead of its Q2 earnings report, downgrading WMT stock to a “Perform” from an “Outperform” and dropping its $140 price target. The brokerage firm sees three near-term concerns – potential pharmacy headwinds tied to the Inflation Reduction Act, a “peakish” valuation that could take a hit if sales growth slows, and Wall Street estimates already running ahead of Walmart’s guidance.

Oppenheimer expects 3% U.S. comparable-sales growth, below the Street’s projections, with grocery strength offset by softer general merchandise and health growth. Still, the brokerage firm remains bullish long term, citing market-share gains, advertising, memberships, improving e-commerce profitability, AI investments, and CEO John Furner’s leadership. Its fiscal 2027 EPS estimate remains $3.10, while the stock could find support in the low-$90s to low-$100s range.

WMT stock has a consensus “Strong Buy” rating overall. Out of 39 analysts covering the stock, 28 advise a “Strong Buy,” six recommend a “Moderate Buy,” and the remaining five analysts are playing it safe with a “Hold” rating.

WMT’s mean target price of $139.87 implies potential upside of approximately 24.4% from current levels. The Street-high target of $155 suggests the stock could rally as much as 37.8% from here.