Walmart's Q4 Outlook Clouded by Consumer Spending Concerns: JP Morgan Analyst

Walmart Inc WMT shares are trading higher on Thursday after the company announced strong second-quarter 2025 results and raised full-year guidance.

The retailer reported adjusted EPS of $0.67 (+9.8% Y/Y), beating the consensus of $0.64 and sales of $169.34 billion, surpassing the consensus of $168.57 billion.

Walmart expects third-quarter adjusted EPS of $0.51 to $0.52 versus a consensus of $0.55, and its net sales to grow 3.25% – 4.25% in CC.

JP Morgan analyst Christopher Horvers has an Overweight rating on WMT. The analyst anticipates a positive stock price reaction today, given concerns about the consumer market and fears of a slowdown at the end of the second quarter, coupled with strong gross margins exceeding Street expectations in both the U.S. and international markets.  

This assumes management adequately addresses the third-quarter timing shift mentioned, writes the analyst. Horvers adds that the absence of an upgrade to implied fourth-quarter estimates likely reflects caution over consumer trends and uncertainties in the second half due to known headwinds.

The analyst says that the third-quarter guidance accounts for the timing of festive events in the international segment and planned expenses. This includes the impact of FK’s Big Billion Days events, which frequently shift between the third and fourth quarters (as seen in 2023).

Investors can gain exposure to the stock via Vanguard Consumer Staples ETF VDC and SPDR Select Sector Fund – Consumer Staples XLP.

Price Action: WMT shares are up 6.55% at $73.15 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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