Walmart (WMT) stock is in the middle of its worst week in two years, falling over 9% in the last week following its Q4 2024 earnings report. Both top and bottom lines came in higher than Wall Street expected in the retailer’s fourth quarter and fiscal 2025 results, released on Thursday before the market opened. Quarterly revenue increased 5.3% year over year to $182.6 billion, while adjusted earnings per share were up 10% to $0.66. However, the retailer’s fiscal 2026 guidance is what appears to have concerned investors.
For its fiscal year 2026, the company put forth conservative guidance, which it has done for the last two years. It projects to increase net sales between 3% to 4%. “We’ve been operating in a highly dynamic backdrop for several years, and we expect this year to be no different,” Walmart CFO John David Rainey said on the earnings call. “Our outlook assumes a relatively stable macroeconomic environment, but acknowledges that there are still uncertainties related to consumer behavior and global economic and geopolitical conditions.”
Is Walmart Stock Still Looking Bright in 2025?
Despite the dip, Walmart is still seen as one of the top choices on the US market. Most analysts are bullish on WMT stock in 2025, therefore, the recent dip could be seen as a buying opportunity. Former Walmart U.S. CEO Bill Simon believes the retailer’s recent stock sell-off creates a major opportunity for investors. “I absolutely thought their guidance was pretty strong given the fact that… nobody knows what’s going to happen with tariffs,” he told CNBC’s “Fast Money” on Thursday. “The big guys, Walmart, Costco, Target, Amazon… have the supply and the sourcing capability to mitigate tariffs by redirecting the product – bringing it in from different places [and] developing their own private labels. Those guys will figure out tariffs.”
Also Read: Nvidia (NVDA): How Much Would a 2020 Investment Be Worth Today?
Simon also believes that while WMT stock was attractive before the earnings announcement, it looks even better now. “If you liked that story yesterday before the earnings release, you should love it today because it’s… cheaper.” Despite this slump, Walmart stock remains up 3% in 2025. While it’s now down 10% from its all-time high hit on Feb. 14, WMT remains up about 60% over the past 52 weeks.
The current Walmart stock dip shouldn’t be too much of a concern for investors. Despite the poor 2026 outlook, 2025 still looks like a great year for WMT. Further, the 2026 outlook could very much be revised if the company posts solid Q1 2025 earnings.