Walmart's Profit Beat Wall Street. Its US Sales Growth Didn't — and the Stock Fell Anyway
A one-time tariff refund helped margins, but slower store traffic and price-conscious shoppers pulled US comparable sales below forecasts. Walmart raised its full-year outlook regardless.
Meridians Money Desk
Published 21 August 2026 · Updated 21 August 2026 · 5 min read
BusinessThe short answer
- Walmart's fiscal Q2 2027 revenue reached $187.9 billion, up 5.9% year-over-year, with adjusted EPS of $0.81, up 19.1%.
- US comparable sales grew 2.6%, missing Wall Street's 3.7% estimate; the stock dropped about 6% in premarket trading despite the earnings beat.
- Global e-commerce sales rose 23%, with US marketplace sales up 52% and Walmart Connect advertising revenue up 43%.
- Walmart raised its full-year guidance and says it could be eligible for roughly $2.4 billion in tariff refunds, which helped expand margins this quarter but may not recur.
Walmart beat Wall Street's profit estimates for its fiscal second quarter, reported August 20, 2026, and its stock still fell. Total revenue reached $187.9 billion, up 5.9% year-over-year, with adjusted earnings per share of $0.81, up 19.1%. The company raised its full-year guidance. Investors focused on something else.
Why the stock dropped on a beat
US comparable sales grew 2.6%, well short of Wall Street's 3.7% estimate. Both store traffic and average ticket size came in lower than analysts expected. Sales excluding health and wellness products grew a stronger 3.4%; the health and wellness segment was held back by Medicare drug price negotiation legislation. Walmart has been cutting prices on thousands of items, including staples like beef, chips and soda, to keep cost-conscious shoppers in its stores.
Where the growth actually came from
- Global e-commerce sales up 23%, with US e-commerce up 24%
- US marketplace sales up 52%
- Walmart Connect advertising revenue up 43%
The tariff refund behind the margin gain
Walmart's gross profit rate expanded 96 basis points to 25.4%, and the company says a significant portion of that expansion came from tariff refunds, money it expects to receive back on tariffs it already paid. Walmart estimates it could be eligible for roughly $2.4 billion in IEEPA tariff refunds, about 0.5% of its US annual sales, and says it plans to put any refund toward further price cuts rather than profit. The company also cautioned that this quarter's margin gains from tariff refunds may not repeat.
The outlook
Walmart raised its full-year guidance to 4.0%-5.0% constant-currency net sales growth, up from 3.5%-4.5%, and adjusted EPS of $2.80-$2.87, up from $2.75-$2.85.
Sources
Every factual claim above is traceable to these documents. Check them — that is why they are here.
About this byline
Meridians Money Desk is an editorial desk at Meridians, not an individual. A desk byline means the article was produced and fact-checked to that desk's published standards. Read our editorial standards and corrections policy.
Sponsored
Paid placement · not editorial
The FTC Fined Payment Processor Nuvei $4.85 Million Over Merchants It Kept Processing for Years
4 min read · 10 September 2026
Broadcom's AI Chip Revenue Grew 221% Last Quarter — and Its Own Forecast Says That Accelerates
3 min read · 7 September 2026
CrowdStrike Posts a Record Quarter, Raises Its Full-Year Growth Forecast
4 min read · 31 August 2026
The Meridians Brief
One considered email a week
What changed, what it costs you, and what to do about it — from the Meridians desks. No sponsored picks disguised as recommendations.
Sign-up opens with our launch issue. Nothing is sent or stored yet.