Walmart Stock (WMT) Plunge: Analyst Calls Q2 Results a ’Prime Buying Opportunity’

Retail giant's mixed earnings spark divergent reactions—while some panic, analysts spot blood in the water.

The Numbers Don't Lie

Walmart's Q2 performance delivered the classic 'good news, bad news' scenario that sends retail investors scrambling and hedge funds licking their chops. Revenue beat expectations while margins tightened—the kind of nuanced picture that separates momentum traders from value hunters.

Street Sentiment Split

Analysts remain bullish despite the headline noise, pointing to underlying strength in grocery and e-commerce segments. One major firm upgraded WMT to 'Strong Buy' citing discounted entry points—because nothing makes Wall Street happier than a temporary 5% dip they can call a 'generational opportunity'.

The Cynical Take

Let's be real: when institutions talk about 'buying opportunities,' they usually mean 'we need greater fools to hold these bags while we rebalance.' But occasionally—just occasionally—the retail herd actually gets it right.

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Q2 Wobble

The company reported adjusted earnings per share for the period of $0.68, missing forecasts of $0.74. Operating income dropped 8.2% to $7.2 billion.

Revenues ROSE 4.8% to $177.4 billion, surpassing expectations of around $175 billion. U.S. same-store sales rocked up 4.6%, helped by strong demand for grocery, health and wellness and more pricing rollbacks given the uncertain economic picture.

E-commerce sales were strong over the period with a 25% hike in demand globally and by 26% in the U.S. alone. This was led by store-fulfilled pickup & delivery and marketplace.

How Did Analysts React?

Jason Strominger of Telsey Advisory raised the firm’s price target on Walmart to $118 from $115 and kept an Outperform rating on the shares. He expects Walmart will remain a market share gainer in the retail industry and is encouraged by the company’s expanded vision beyond retail and e-commerce. He added that the company’s planned new businesses are more profitable than traditional retail, which should help the company grow its operating income faster.

Mizuho analyst David Bellinger said the post-earnings selloff in shares of Walmart is a buying opportunity. “There is nothing thesis-changing in the Q2 earnings miss as insurance cost true-ups should not stick around forever,” he said.

Kelly Bania of BMO agreed that the bottom line had been hit by “unplanned insurance claims costs” and that the company faced the potential of near-term volatility “from tariffs which should build in the second half.”

However, she believes Walmart will “emerge as a major share gainer” and is on “offense” heading into the second half.

Oliver Chen, of TD Cowen, said Walmart remained a top 2025 idea boosted by “low prices and high convenience meeting artificial intelligence for the long-term.” He said that tariff-related price volatility was lower than expected and that it was still the value choice for consumers. He is also encouraged by back to school spend and the potential for the holiday season.

Is WMT a Good Stock to Buy Now?

On TipRanks, WMT has a Strong Buy consensus based on 28 Buy ratings. Its highest price target is $130. WMT stock’s consensus price target is $113.96, implying a 17.05% upside.