Don't Miss Walmart's Aug 21 Earnings: $0.73 EPS Forecast, Grocery + E-Com Dual Engines – Unlimited Upside Potential?
TradingKey - Walmart's stock price has shown an overall fluctuating upward trend since the release of its first-quarter earnings report, benefiting from investors' favoritism towards Walmart as a defensive stock, as well as expectations for its stable growth in e-commerce and grocery businesses. Walmart's FY2026 Q2 earnings report will be released before the U.S. stock market opens on August 21, 2025. Below are the expectations for its revenue and earnings per share:
· Revenue Expectation: Based on analyst consensus, the average revenue expectation for this quarter is $174.11 billion, with a year-over-year growth rate of approximately 4% (compared to $167.77 billion in the same period last year).
· EPS Expectation: The average EPS expectation is $0.73, with a year-over-year growth rate of approximately 9% (compared to $0.67 EPS in the same period last year).
These expectations reflect the market's optimism about Walmart's continued growth in grocery and e-commerce sectors, but also take into account the impacts of slowing consumer spending and potential tariff pressures.
Key Investor Focus Areas
When paying attention to Walmart's FY2026 Q2 earnings report, investors should focus on the following fundamental information, as these factors will directly affect the company's short-term performance and long-term valuation:
Consumer Spending and Inflation Trends: Pay attention to comparable store sales growth (especially in grocery and essentials departments) and changes in consumer behavior, such as whether they continue to shift towards low-priced goods or reduce purchases of non-essentials. If inflation eases but consumer spending remains weak (such as affected by high interest rates), it may lead to revenue falling short of expectations, negatively impacting the stock price; conversely, if Walmart maintains market share through pricing strategies, it will strengthen its defensive position and boost investor confidence.
E-commerce and Digital Business Growth: Focus on the proportion of online sales, Walmart+ membership growth, and advertising revenue. E-commerce achieved profitability in Q1, and if Q2 continues strong growth (including digital payments and third-party services as expected), it will drive overall revenue diversification and positively boost valuation; however, if growth slows down due to competition (such as from Amazon), it may expose challenges in digital transformation, leading the market to adjust expectations.
Gross Margin and Operating Costs: Investors need to pay attention to changes in gross margin, supply chain efficiency, and labor costs. Potential tariff increases (such as on imported goods) may drive up costs, squeezing profit margins and causing EPS to fall short of expectations, triggering a stock price pullback; if the company mitigates the impact through domestic sourcing or efficiency improvements, it will demonstrate operational resilience and support stock price upside.
Future Guidance and Macroeconomic Insights: Investors should closely monitor Walmart's updated guidance for full-year revenue and EPS, as well as its comments on the macroeconomic outlook, such as key factors like supply chain disruptions and consumer confidence levels. If the company provides optimistic guidance, it will further strengthen its growth narrative and may drive continued stock price increases; conversely, if the outlook is more conservative, it may trigger market selling pressure, especially under the current high valuation of 44 times price-to-earnings ratio, which would amplify downside risks and test investor confidence.
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