$WMT

Walmart (WMT) will report Q2 earnings on Thursday. Last quarter, it beat revenue expectations with $177.8 billion, up 7.3% YoY, but missed EPS and revenue guidance. Analysts expect 5.3% YoY revenue growth this quarter. Peers Grocery Outlet and Sprouts reported mixed results. WMT shares are up 3% in the last month, with an average price target of $137.93.

U.S. stock futures were steady after Wall Street's third straight session decline, driven by rising bond yields and oil prices. The Nasdaq fell 1.3%, with tech and semiconductor stocks leading losses. Nvidia (NVDA) dropped 2.3% and Micron (MU) slid 7%. The 30-year Treasury yield hit a 17-year high before easing. Home Depot (HD) reported better-than-expected earnings. Investors await Fed minutes for policy clues.

Stock futures are mixed, with Nasdaq poised to open higher. Retail earnings from Target, Walmart, Home Depot, and others are expected this week. AI-related chip stocks are rising. The dollar is at a 3-month low as Fed rate hike bets fade. Harvard disclosed a $2.2B stake in SpaceX.

Walmart is offering a $1 trial for its Walmart+ membership, which includes free Peacock streaming. This follows Peacock's price increase to $12.99/month. Walmart+ also offers discounts on fuel, delivery, and other perks. Members can also get free Paramount+ access.

Retailers like Target, TJX, Lowe’s, and Walmart are set to report earnings this week. Despite economic challenges, retailers have performed well, with consumer staples up 9% year-to-date. Discount retailers are benefiting from consumers trading down. Analysts note mixed results, with automotive and home furnishings retailers struggling.

Walmart Inc. (WMT) reported a 44% increase in its retail-media division, Walmart Connect, last quarter. Advertising, which has higher margins than retail, now contributes significantly to operational income. U.S. same-store sales growth slowed to 4.1% last quarter, with analysts predicting further deceleration. Walmart is leveraging AI tools and platforms to grow its advertising business.

Walmart's retail media arm, Walmart Connect, grew 44% in Q2, offsetting slower same-store sales growth of 4.1%. The business contributes significantly to operating income with high margins. Analysts expect similar trends in upcoming earnings, with same-store sales growth dipping below 4%. PYMNTS data indicates financial strain among consumers, focusing on value spending.

US retail sales fell 0.2% in July, the first decline in nine months. Walmart's earnings are anticipated to show whether consumers are becoming more selective. Analysts expect Walmart to gain market share due to its low-cost offerings. Telsey Advisory Group forecasts a 3.3% increase in Walmart US comps, citing strong customer focus and financial flexibility.

Walmart (WMT) shares rose 1.5% to $115.99 as investors favored defensive stocks. Analysts expect $186.7B in Q2 revenue, up 5.2% YoY, with EPS at $0.74. The company's valuation at 41x earnings and near $1T market cap will be tested during earnings on August 20, with focus on e-commerce growth and profitability.

Walmart (WMT) is set to report Q2 earnings on Aug. 20, with a consensus EPS estimate of $0.73, up 7.35% YoY. Options data suggests a bearish outlook, with a put-to-call ratio of 1.56x and a potential 4.28% drop. Bernstein recommends buying the pullback, citing strong fundamentals and a $142 price target. The stock is up less than 2% in 2026, trading at 40x forward earnings.