Walmart's Stock Plummets 4.49% on Earnings Miss Despite Record $5.08B Volume Surge and 9th-Market Rank

On August 21, 2025, Walmart (WMT) shares declined 4.49% amid mixed earnings results, despite a 166.2% surge in trading volume to $5.08 billion. The drop followed the retailer’s Q2 earnings report, which revealed adjusted earnings per share of $0.68—below the $0.74 Wall Street anticipated. The shortfall marked the first quarterly earnings miss since May 2022, attributed to one-time charges related to legal and restructuring costs. Despite revenue of $177.4 billion exceeding forecasts, the stock fell to a 9th-place volume rank in the broader market.

CEO Doug McMillon emphasized Walmart’s low-price strategy as a response to tariff-driven cost pressures, stating the company is “keeping prices as low as we can for as long as we can.” US same-store sales rose 4.6%, outperforming the 4.2% forecast, while Sam’s Club’s sales grew 5.9% against expectations of 5.3%. However, operating income declined over 8% due to tariff-related expenses. The company raised its full-year revenue and profit outlook to 3.75%-4.75% growth and $2.52-$2.62 adjusted EPS, slightly above current market expectations.

Strong performance in grocery and health & wellness categories—driven by tariff-exempt domestic and North American sourcing—offset broader inflationary pressures. US e-commerce sales grew 25% year-over-year, outpacing analyst projections. Yet, CFO John David Rainey noted ongoing cost increases as inventory replenishment at post-tariff prices continues. The company expects price adjustments in the second half of 2025 to maintain gross margins and profitability.

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