New York, Feb 21, 2026, 12:26 PM EST — The market has closed.
- Walmart dropped 1.5% on Friday, settling at $122.99. Shares kept slipping after its latest earnings report.
- The retailer unveiled a $30 billion buyback and bumped up its dividend, but its adjusted profit guidance for fiscal 2027 landed on the soft side.
- Attention shifts to analyst estimate changes, fresh consumer data, and the upcoming inflation and spending numbers.
Walmart Inc (WMT.N) fell 1.5% to close at $122.99 on Friday, extending its slide to a second day after the retailer’s latest outlook unsettled some investors. Shares ranged from $121.06 to $125.05 throughout the session.
Why does it matter? Walmart is routinely used as a proxy for the American consumer, particularly when wallets are squeezed. Fresh data Friday underscored ongoing inflation pressures: core PCE prices, which strip out food and energy and are closely tracked by the Fed, climbed 3.0% year-over-year in December, according to the BEA. 1
Walmart projected fiscal 2027 adjusted EPS in the $2.75 to $2.85 range, stripping out select items, and sees net sales climbing 3.5% to 4.5% in constant currency, not counting exchange-rate shifts. For the fourth quarter, revenue hit $190.7 billion with adjusted earnings at 74 cents a share. The company also cleared a fresh $30 billion buyback. “The pace of change in retail is accelerating,” President and CEO John Furner said in the release. 2
Despite Walmart turning in solid U.S. same-store sales and keeping its online business humming, the mood stayed cautious, according to Reuters. “The outlook implies a resilient but value-focused consumer,” noted Russell Shor, senior market analyst at Tradu, adding there’s not much demand for high-priced items right now. 3
The company bumped up its annual dividend to $0.99 per share for fiscal 2027, marking a 5% rise over the previous year and detailing the record and payable dates for its next round of quarterly payments. “We’re proud to be increasing our annual dividend for the 53rd consecutive year,” Chief Financial Officer John David Rainey said. 4
Walmart dropped 1.51% Friday—even as retail and tech names pushed higher. Amazon jumped 2.56%. Target picked up 0.89%. That’s all per MarketWatch. 5
Valuation is grabbing more attention than execution now on the Street. HSBC cut its rating on Walmart to “hold” from “buy”, but bumped the price target to $131 from $122. The move, flagged by Investing.com, came after HSBC trimmed its forecasts, pointing to valuation worries and what it called Walmart’s softer-than-expected guidance. 6
Walmart’s answer to that pushback: show profit growth outpacing sales, leaning on segments like advertising, memberships, and its marketplace—investors see these as higher margin. None of those areas have hit full stride yet, though the company continues to highlight them.
The risk is clear enough: should value-driven shoppers pull back, Walmart might have to push prices lower just as it’s shelling out for automation and speedier delivery. In its outlook, the company pointed to vulnerability around demand swings, inflation, rates, trade and tariff policy shifts—plus a few other moving pieces.
Come Monday, the focus turns to whether post-earnings sellers keep up the pressure as U.S. markets resume on Feb. 23. Traders are also eyeing any talk of buybacks or dividend boosts—either could put the brakes on the decline.
On deck: the BEA drops its January personal income and spending numbers — PCE inflation’s in there too — on March 13. Walmart’s got its first dividend record date at the bumped-up annual rate locked in for March 20.
