Walmart stock price falls on disappointing forecast, but the retail giant is not worried about tariffs

Walmart shares fell early trading on Thursday after it posted its fourth-quarter earnings results. Despite an increase in sales, the retail giant said it expected profit growth to slow during this fiscal year.

E-commerce sales increased 20% in the United States while revenue for the fourth quarter was up around 4%, according to Walmart’s earnings release. Growth in store pickups and speed of home deliveries—as well as share gains primarily from upper-income households—drove sales growth for the quarter, Walmart said.

But Walmart stock (NYSE: WMT) still decreased on Thursday after it reported 2026 fiscal-year revenue and profit targets that were below analysts’ expectations. The retailer projected adjusted earnings per share of $2.50 to $2.60, which is south of the $2.76 share analysts had predicted, according to a consensus estimate cited by CNBC.

Walmart noted that it expects net sales to increase in the range of 3% to 4%. Operating income is set to grow 3.5% to 5.5%, including headwinds of 150 basis points from its acquisition of smart-TV maker Vizio and an extra day in 2024 from Leap Year.

As of midday Thursday, Walmart stock was down over 6%.

“Low Prices and Convenience”

During an investors call on Thursday, John David Rainey, chief financial officer, said that faster, more frequent deliveries and low costs have helped Walmart’s e-commerce business grow over the years.

“Our prices are low and we are becoming more convenient,” CEO Doug McMillon added on the call. “Customers and members are going to be looking for value. They’re going to be looking for convenience.”

Uncertainty in the global environment, including shifting trade policies and tariffs, has led to concerns about rising costs for businesses and consumers alike. Walmart plans to navigate these challenges by finding ways to maintain affordability for their customers.

A Walmart spokesperson told Fast Company that the retailer has operated in a tariff environment for the past eight years and is well prepared to continue doing so. The spokesperson emphasized that Walmart will work hard to keep prices as low as they have been.

Walmart continues to remain confident in its ability to provide value to customers despite the economic uncertainties.