Walmart stock drops as it posts Q4 earnings beat, cautious 2025 guidance

Published On Feb 20, 2025, 9:11 AM

Walmart reported better-than-expected earnings for Q4, with revenues increasing 5.3% year-on-year to $182.6 billion and adjusted earnings per share rising to $0.66. However, the stock fell by about 7% during early trading due to disappointing fiscal guidance for 2026, projecting sales growth of only 3% to 4%. Despite the growth in e-commerce sales and strong performance in its grocery segment, analysts note that concerns over consumer behavior and economic conditions cloud the outlook. Walmart has seen significant stock appreciation over the past year, contrasting with sector peers like Target.

Stock Forecasts

WMT

Negative

Investor sentiment may remain negative due to the cautious outlook and missed expectations on future sales growth. The stock initially reacted strongly to the guidance, indicating a trend that may continue if market conditions do not improve. The cautious guidance could signal potential headwinds that investors are now wary of.

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Walmart reported strong quarterly results, continuing to benefit from an increase in higher earners who were purchasing more groceries and discretionary items.