Walmart $WMT just delivered mixed results, and the market punished the stock.
Shares slipped -0.5% on the day, marking the second consecutive negative earnings reaction for the world’s largest retailer.
It’s not that the numbers were terrible. They weren’t.
But the guidance was a huge disappointment.
With revenue growth flattening and consumer trends appearing somewhat fragile, investors are clearly adopting a more cautious stance.
Additionally, the stock is exhibiting signs of exhaustion. It has carved out a potential multi-month distribution pattern.
Walmart’s still a bellwether for the U.S. consumer.
However, if this stock starts to break down, it might be indicating more about the market than just the company.
So what else did we learn from yesterday's earnings reactions? Let's dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Steris $STE had the best reaction score after reporting a double beat.
The company reported revenues of $1.48B, versus the expected $1.47B, and earnings per share of $2.74, versus the expected $2.60.
Walmart $WMT had the worst reaction score after reporting mixed results.
The company reported revenues of $165.61B, versus the expected $165.62B, and earnings per share of $0.61, versus the expected $0.58.
Now let's dive into the data and talk about what happened with these reports 👇
DE has been rewarded for 3 of its last 4 earnings reports:
John Deere rallied 3.8% after this earnings report, and here's why:
Deere’s precision technology adoption is accelerating, with over 1,000 new orders for See & Spray in 2025 and a 15% year-over-year increase in engaged acres on the John Deere Operations Center platform.
Margins, while down year-over-year, improved sequentially and exceeded projections, with the equipment operations margin reaching 18.8% for the quarter.
Management reiterated its outlook for fiscal 2025, with net income guidance of $4.75B to $5.50B.
This company is dominating the agribusiness industry, and the market loves it.
The stock recently put the finishing touches on a textbook multi-year accumulation pattern, and it's now printing fresh all-time highs.
If DE is above 450, the path of least resistance is likely to remain higher for the foreseeable future.
WMT has been punished for 2 consecutive earnings reports:
Walmart fell 0.5% after this earnings report, and here's why:
Management issued a sales outlook for fiscal year 2026 of 3% to 4% growth, which was below analyst expectations of 4%.
They also provided EPS guidance of $0.57 to $0.58 for Q1 2026, compared to the consensus estimate of $0.64.
The International operating income declined by 17.5% year-over-year.
No company in the world generates more revenue than Walmart, but currently, it is struggling to translate that into increased profits for its shareholders.
The price has been churning sideways for the last six months, and it's beginning to resemble a distribution pattern.
With the market reacting negatively to their last 2 earnings reports, we want to give the bears the benefit of the doubt.
If WMT is below 90, the path of least resistance will shift from sideways to lower for the foreseeable future.
Thank you for reading.
- The Beat Report Team
PS: Retail tells a story — and Jeff Macke knows how to read it. From Walmart earnings to trends at Target and Nike, he’s breaking down what’s really moving the consumer. If retail’s in play, Macke’s on it, and you stay up to speed with his Retail Roundup portfolio.
If you find our content valuable, we would greatly appreciate it if you could shareit with your friends, family, and colleagues. Your help in spreading the word is invaluable in supporting our work. Thank you to all of you who share!
