Walmart (WMT) Faces E-Commerce Battle, Downgrade Before Earnings

Font: Financial Modeling Prep  • Aug 19, 2026

Walmart Inc. (NASDAQ: WMT) Faces E-Commerce Competition Ahead of Earnings

• Walmart Inc. (NASDAQ: WMT) remains dominant in U.S. grocery spending but trails Amazon in several higher-margin retail categories.
• Oppenheimer downgraded Walmart from “Outperform” to “Perform” and withdrew its $140 price target, citing a less compelling near-term risk-reward profile.
• Walmart is scheduled to report its fiscal second-quarter 2027 results on August 20, 2026. Its previous quarter’s adjusted earnings modestly exceeded the Zacks consensus estimate.

Walmart Inc. is a global omnichannel retailer operating supermarkets, discount stores, warehouse clubs, and e-commerce platforms. The company holds a commanding position in U.S. grocery spending but competes closely with Amazon in categories such as electronics, clothing, furniture, and sporting goods.

According to PYMNTS, Walmart accounted for 20.8% of U.S. consumer spending on food and beverages during the first quarter of 2026, compared with Amazon’s 2.9%. However, Amazon led in several higher-margin retail categories and held 9.3% of overall U.S. retail spending, compared with Walmart’s 7.8%. These figures illustrate Walmart’s challenge in converting its frequent grocery customers into buyers of more profitable general merchandise.

On August 4, 2026, Oppenheimer downgraded Walmart from “Outperform” to “Perform” and removed its previous $140 price target. The firm cited potential pharmacy-related pressure on comparable sales, Walmart’s elevated valuation, and Wall Street profit estimates that appeared demanding relative to company guidance. 

Walmart is scheduled to release its fiscal second-quarter 2027 results on August 20, 2026. The company previously guided for adjusted earnings of $0.72 to $0.74 per share and constant-currency net-sales growth of 4% to 5% for the quarter. Market-based technical observations about resistance levels may indicate trader sentiment, but they do not guarantee that the share price will rise after earnings.

In its fiscal first quarter of 2027, Walmart reported adjusted earnings of $0.66 per share, slightly above the Zacks consensus estimate of $0.65 and representing a 1.54% earnings surprise. Its average earnings surprise over the two most recently reported quarters was approximately 1.45%. Walmart also reported revenue of $177.8 billion, up 7.3%, while global e-commerce sales increased 26%.