Walmart announces Q2 adjusted earnings per share of 68 cents, falling short of the expected 74 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Should l Buy WMT?
Q2 Revenue Performance: The company reported a Q2 revenue of $177.4 billion, exceeding the consensus estimate of $174.38 million.
E-commerce Growth: E-commerce sales increased by 25% globally, indicating strong performance in online retail.
Innovation and Customer Connection: The company attributes its growth to innovation and effective execution, emphasizing the importance of digital experiences in connecting with customers.
AI Deployment: The integration of AI is highlighted as a key factor in enhancing customer experiences, showcasing the company's commitment to being people-led and tech-powered.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to fall
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 127.950
Low
119.00
Averages
125.75
High
136.00
Current: 127.950
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Walmart's High Valuation Raises Investment Risks
- Strong Earnings Report: Walmart recently posted earnings that exceeded market expectations on both revenue and net income; however, the stock did not surge, indicating investor concerns about its inflated valuation.
- Price Surge vs. Growth Rate: Over the past three years, Walmart's stock price has increased by 170%, yet its average growth rate has only been around 5%, leading to a current P/E ratio of 47, which appears excessively high.
- Attraction of Safe Investments: Amidst a trend of investors flocking to traditional safe assets like gold and silver, Walmart's performance as a blue-chip stock has been relatively strong, but this does not imply that its current price is justifiable.
- Cautious Investment Advice: Despite Walmart's solid business fundamentals, analysts recommend that investors exercise caution in purchasing at this high valuation, suggesting that there are better value investment opportunities available in the market.
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- Market Cap and Performance: Walmart's market cap exceeds $1 trillion, and although it recently posted earnings that beat expectations, the stock has not surged, indicating investor concerns about its high valuation.
- Growth Rate Analysis: With an average annual growth rate of around 5%, Walmart's stable growth seems insufficient to justify a 170% increase in its stock price over the past three years.
- Valuation Concerns: Currently trading at a price-to-earnings ratio of 47, which is extraordinarily high for a blue-chip stock, investors need to be cautious about future growth expectations, as the current price appears unjustifiable.
- Market Outlook: Despite Walmart's solid business performance, its stock may have peaked, as recent declines suggest that market expectations for future growth are not optimistic.
See More
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- Earnings Beat Expectations: Walmart recently reported earnings that surpassed market expectations on both revenue and net income; however, the stock did not surge, indicating investor concerns about its high valuation, which could impact future investment decisions.
- Stable Growth Rate: With an average annual growth rate of around 5%, Walmart's growth has been consistent, but it seems insufficient to justify a 170% increase in stock price over the past three years, leading to potential price corrections.
- High Valuation: Currently trading at a price-to-earnings ratio of 47, Walmart's valuation is considered extremely high for a blue-chip stock, prompting investors to carefully assess its future growth potential to determine if the current price is justified.
- Cautious Investment Advice: Despite Walmart's solid business performance, analysts recommend avoiding the stock at its current high valuation, suggesting that there are better value investment options available, which may affect Walmart's market performance.
See More
Walmart Beats Earnings Expectations, E-commerce Penetration Hits Record High
- Walmart Earnings Surprise: Walmart reported earnings of $0.74 per share, exceeding expectations, although its conservative guidance raises concerns about potential economic slowdown as its market share among high-income households grows.
- Record E-commerce Penetration: Walmart's e-commerce penetration reached 23%, a record high, driving operating income growth and demonstrating success in its digital transformation, thereby enhancing its competitive position in the market.
- Booking Holdings Stock Volatility: Despite Booking Holdings posting strong earnings and guiding for 15% revenue growth next quarter, its shares fell 7.5%, indicating investor concerns over its stock split announcement and future growth prospects.
- eBay Acquires Etsy's Depop: eBay's acquisition of Etsy's Depop business for over $1 billion has been positively received by the market, but analysts warn that this may impact eBay's shareholder returns, while Etsy benefits from cash flow, making it the bigger winner in the deal.
See More
Walmart Beats Earnings Expectations, E-commerce Penetration Hits Record High
- Earnings Beat: Walmart reported earnings of $0.74 per share, exceeding expectations, and while its guidance remains conservative, the company's historical trend of raising forecasts suggests potential for future growth, enhancing investor confidence.
- Record E-commerce Penetration: Walmart's e-commerce penetration reached 23%, a record high, which not only boosts operating income but also indicates successful digital transformation, further solidifying its market position.
- Booking Holdings Stock Volatility: Despite Booking Holdings posting strong earnings, its stock fell 7.5%, indicating market skepticism towards its 25-for-1 stock split, even as it forecasts 15% revenue growth for the upcoming quarter, reflecting investor concerns about future growth.
- Etsy and eBay Acquisition Deal: eBay's acquisition of Etsy's Depop business was met with positive market reactions, but analysts suggest Etsy is the bigger winner, gaining cash flow while shedding a distraction, highlighting its successful strategic realignment.
See More
Target Corporation's Q4 Earnings Preview and Turnaround Strategy
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- Profitability Analysis: Expected earnings per share of $2.16, down from $2.41 last year, reflects a potential concern for market recovery despite the company beating EPS estimates in 7 of the last 10 quarters, raising doubts about its recovery trajectory.
- Stock Volatility: Target's shares have averaged a 7.9% decline following the last five earnings reports, and while the stock is up 11.9% year-to-date, its overall performance remains below expectations, indicating market caution regarding its turnaround strategy.
- Digital Transformation: The integration of the Target app with OpenAI's ChatGPT aims to enhance customer experience, and while digital sales have increased, investors are still looking for signs of recovery in discretionary categories.
See More
Walmart's High Valuation Raises Investment Risks
- Strong Earnings Report: Walmart recently posted earnings that exceeded market expectations on both revenue and net income; however, the stock did not surge, indicating investor concerns about its inflated valuation.
- Price Surge vs. Growth Rate: Over the past three years, Walmart's stock price has increased by 170%, yet its average growth rate has only been around 5%, leading to a current P/E ratio of 47, which appears excessively high.
- Attraction of Safe Investments: Amidst a trend of investors flocking to traditional safe assets like gold and silver, Walmart's performance as a blue-chip stock has been relatively strong, but this does not imply that its current price is justifiable.
- Cautious Investment Advice: Despite Walmart's solid business fundamentals, analysts recommend that investors exercise caution in purchasing at this high valuation, suggesting that there are better value investment opportunities available in the market.
See More
Walmart's High Valuation Raises Investor Concerns
- Market Cap and Performance: Walmart's market cap exceeds $1 trillion, and although it recently posted earnings that beat expectations, the stock has not surged, indicating investor concerns about its high valuation.
- Growth Rate Analysis: With an average annual growth rate of around 5%, Walmart's stable growth seems insufficient to justify a 170% increase in its stock price over the past three years.
- Valuation Concerns: Currently trading at a price-to-earnings ratio of 47, which is extraordinarily high for a blue-chip stock, investors need to be cautious about future growth expectations, as the current price appears unjustifiable.
- Market Outlook: Despite Walmart's solid business performance, its stock may have peaked, as recent declines suggest that market expectations for future growth are not optimistic.
See More
Has Walmart's Stock Peaked?
- Earnings Beat Expectations: Walmart recently reported earnings that surpassed market expectations on both revenue and net income; however, the stock did not surge, indicating investor concerns about its high valuation, which could impact future investment decisions.
- Stable Growth Rate: With an average annual growth rate of around 5%, Walmart's growth has been consistent, but it seems insufficient to justify a 170% increase in stock price over the past three years, leading to potential price corrections.
- High Valuation: Currently trading at a price-to-earnings ratio of 47, Walmart's valuation is considered extremely high for a blue-chip stock, prompting investors to carefully assess its future growth potential to determine if the current price is justified.
- Cautious Investment Advice: Despite Walmart's solid business performance, analysts recommend avoiding the stock at its current high valuation, suggesting that there are better value investment options available, which may affect Walmart's market performance.
See More
Walmart Beats Earnings Expectations, E-commerce Penetration Hits Record High
- Walmart Earnings Surprise: Walmart reported earnings of $0.74 per share, exceeding expectations, although its conservative guidance raises concerns about potential economic slowdown as its market share among high-income households grows.
- Record E-commerce Penetration: Walmart's e-commerce penetration reached 23%, a record high, driving operating income growth and demonstrating success in its digital transformation, thereby enhancing its competitive position in the market.
- Booking Holdings Stock Volatility: Despite Booking Holdings posting strong earnings and guiding for 15% revenue growth next quarter, its shares fell 7.5%, indicating investor concerns over its stock split announcement and future growth prospects.
- eBay Acquires Etsy's Depop: eBay's acquisition of Etsy's Depop business for over $1 billion has been positively received by the market, but analysts warn that this may impact eBay's shareholder returns, while Etsy benefits from cash flow, making it the bigger winner in the deal.
See More
Walmart Beats Earnings Expectations, E-commerce Penetration Hits Record High
- Earnings Beat: Walmart reported earnings of $0.74 per share, exceeding expectations, and while its guidance remains conservative, the company's historical trend of raising forecasts suggests potential for future growth, enhancing investor confidence.
- Record E-commerce Penetration: Walmart's e-commerce penetration reached 23%, a record high, which not only boosts operating income but also indicates successful digital transformation, further solidifying its market position.
- Booking Holdings Stock Volatility: Despite Booking Holdings posting strong earnings, its stock fell 7.5%, indicating market skepticism towards its 25-for-1 stock split, even as it forecasts 15% revenue growth for the upcoming quarter, reflecting investor concerns about future growth.
- Etsy and eBay Acquisition Deal: eBay's acquisition of Etsy's Depop business was met with positive market reactions, but analysts suggest Etsy is the bigger winner, gaining cash flow while shedding a distraction, highlighting its successful strategic realignment.
See More
Target Corporation's Q4 Earnings Preview and Turnaround Strategy
- Earnings Expectations: Analysts forecast Target's Q4 revenue at $30.50 billion, down from $30.91 billion last year, indicating competitive pressures that may affect investor confidence moving forward.
- Profitability Analysis: Expected earnings per share of $2.16, down from $2.41 last year, reflects a potential concern for market recovery despite the company beating EPS estimates in 7 of the last 10 quarters, raising doubts about its recovery trajectory.
- Stock Volatility: Target's shares have averaged a 7.9% decline following the last five earnings reports, and while the stock is up 11.9% year-to-date, its overall performance remains below expectations, indicating market caution regarding its turnaround strategy.
- Digital Transformation: The integration of the Target app with OpenAI's ChatGPT aims to enhance customer experience, and while digital sales have increased, investors are still looking for signs of recovery in discretionary categories.
See More
