Now I have the actual Q2 FY27 results from the SEC filing. Let me get more details. Now I have all the key data from the actual Q2 FY27 earnings release (SEC filing). Let me compile the briefing.

Walmart Beat Expectations and Raised Guidance, So Why Did the Stock Drop 5.6% — And What Does a 2.6% Comp Tell Us About the American Consumer?

Shares plunged 5.6% to $107.90 Thursday morning after Walmart's fiscal second-quarter report delivered a paradox: numbers that beat forecasts on paper but revealed a worrying slowdown underneath. Walmart reported strong revenue growth including 23% global e-commerce gains , and U.S. comparable sales grew just 2.6% — dragged by an 80-basis-point headwind from health & wellness — while the company raised its full-year outlook. Revenue of roughly $187.9 billion topped the Wall Street consensus of approximately $186.8 billion , and full-year net sales guidance was lifted to 4.0%–5.0% growth with adjusted operating income now expected to rise 7.0%–8.5% , up from the prior 3.5%–4.5% and 6.0%–8.0% ranges, respectively.

  • Same-Store Sales Slowed Sharply, and That Spooked Investors

U.S. comparable sales of 2.6% mark a steep deceleration from the 4.1% posted in Q1 and the 4.6% recorded in the year-ago quarter.

Oppenheimer had warned of a slowdown to roughly 3%, citing softer general merchandise and health-related headwinds, calling Walmart's valuation "peakish." For a stock that entered the day trading near 37 times forward earnings — above the industry average of about 34 times — even a beat-and-raise can't overcome decelerating foot traffic in the core U.S. business.

  • Tariff Refunds Flattered Profits, Raising Quality-of-Earnings Questions

CFO John David Rainey said tariff refunds received in Q2 will be prioritized into customer experience and price investments in the second half , effectively warning that Q2 margins got a one-time boost that won't repeat. Bernstein analysts had flagged that Walmart was experiencing a comparable-sales slowdown due to "the lapping of tariff-driven price increases." In other words, some of the quarter's profit strength was borrowed from future periods.

  • The Guidance Raise Is Real, but Q3 Looks Soft

Q3 guidance calls for just 3.0%–3.75% net sales growth and 2.0%–4.0% operating income growth — noticeably weaker than Q2. Management cited a 100-basis-point headwind from a timing shift in Flipkart's major sales event between Q3 and Q4. Still, the deceleration reinforces the market's concern that the consumer is softening, especially after July U.S. retail sales fell 0.6%, missing expectations by a wide margin.

  • A Premium Valuation Leaves No Room for Doubt

Shares entered 2026 down roughly 4% for the year because Walmart's prior-quarter guidance hold disappointed investors who wanted a raise to justify the premium valuation. Today's sell-off, the largest single-day drop since February, suggests the raise finally arrived — but the quality of the underlying sales growth did not. At ~$107.90, WMT now sits near its July low of $106.79 , a level that will test whether long-term bulls still see the advertising, e-commerce, and membership story as intact or increasingly priced for perfection.