#NewsAlert | Walmart sees Q3 adjusted EPS at 58¢ to 60¢ vs estimates of 57¢#Walmart #EarningsUpdate #Q3Results #StockMarket #RetailNews #BusinessUpdate pic.twitter.com/8Me320dMpA
— ET NOW (@ETNOWlive) August 21, 2025
Walmart, the world’s largest retailer, reported a 4.6% increase in U.S. sales for the second quarter, surpassing Wall Street’s expectations. The company’s low-price strategy attracted consumers amidst tariff-related uncertainty and economic challenges. CEO Doug McMillon acknowledged that tariff costs have been rising each week and are expected to continue.
Despite this, Walmart has maintained lower prices on top back-to-school products compared to the previous year. McMillon noted that the impact of tariffs has not caused significant changes in customer behavior.
#NewsAlert | Wipro: Walmart sees Q3 adjusted EPS at 58¢ to 60¢ vs estimates of 57¢#Walmart #EarningsUpdate #Q3Results #StockMarket #RetailNews #BusinessUpdate pic.twitter.com/BcR7nRWjwd
— ET NOW (@ETNOWlive) August 21, 2025
While some price increases have occurred, Walmart continues to attract higher-income shoppers seeking deals, while middle- and lower-income customers may adjust their purchasing habits.
Walmart CEO Says Tariff Costs Expected To Rise, Lower And Middle Income Consumers Hit Most.https://t.co/i7pnhxtO28
— Benzinga (@Benzinga) August 21, 2025
Rival retailers, such as Home Depot and Lowe’s, have also reported sales growth despite the uncertain environment created by tariffs. Home Depot CEO Ted Decker highlighted that general economic uncertainty is the primary reason for consumers delaying large projects. Retailers and manufacturers have largely avoided major price hikes by stockpiling goods in advance.
Walmart, Home Depot, and Sony have all announced price hikes this week because of the Stefanik-Trump tariff tax hikes.@EliseStefanik and every NY House Republican voted to make life more expensive for New York families.https://t.co/hWKlOO5xyO
— New York State Democratic Party (@nydems) August 21, 2025
Walmart’s Q2 sales growth analysis
TJX, the parent company of T.J.Maxx, Marshalls, and HomeGoods, reported buying more inventory than usual to ensure they remain well-stocked. Walmart’s stock fell 4.5% after the company reported adjusted earnings per share of $0.68, falling short of the expected $0.74.
This marked the first quarterly earnings miss since May 2022. However, revenue exceeded expectations at $177.4 billion. The company expects net sales in fiscal 2026 to increase between 3.75%-4.75%, up from the previous range of 3%-4% growth.
Walmart highlighted strength in its grocery and health and wellness categories, driving U.S. sales growth. Approximately 60% of Walmart’s U.S. sales come from groceries, which are largely tariff-exempt if produced domestically or in Mexico and Canada. The company has also been focusing on e-commerce and delivery, with U.S. e-commerce profitability continuing to increase.
Walmart sources two-thirds of its goods directly from the U.S., with less than one-third being imported from China, Mexico, Vietnam, India, and Canada. The company expects prices to increase in the latter half of the year as costs continue to rise due to tariffs.