Walmart shares tumble 8% on pre-market Nasdaq after subdued US sales growth; what investors should know

Walmart shares tumbled 8% during the pre-market hours on Nasdaq on Thursday, August 20, as investors focused on one of the largest American retailer’s disappointing US sales growth as drug prices were impacted by the changes in regulations on prescribed medication.

After the opening bell on August 20, Walmart stock declined more than 8% on Thursday’s trading session to around $105.18 apiece, according to the exchange data.

MarketWatch data showed that Walmart shares were trading more than 8% lower at $105.05 per share during Thursday’s pre-market session on Nasdaq ahead of the opening bell, in comparison to $114.30 per share at the previous equity market close.

Although the company raised its full-year financial guidance, the stock declined on Thursday as investors focused on the declining sales growth in the US market, largely due to the decline in drug prices.

Walmart posts Q2 FY27 earnings

Walmart’s filings data showed that the US store sales advanced 2.6% in the period under review, falling behind Wall Street estimates of 3.7%, with reports suggesting that this the slowest pace of growth since the fourth quarter (Q4) of 2020.

The subdued US store sales was a result of the cheaper drug prices in the United States which in turn reduced the sales growth in the retail stores due to the maximum fair price legislation that allows Medicare to negotiate drug prices.

However, in other segments like core merchandise, the company reported a 3.4% sales growth.

Walmart’s e-commerce sales surged 23% above the 22% expectations, with a 24% increase in its US sales in the segment largely due to the promotions which the company ran to beat competitors.

The filings also showed that the company’s total revenues surged 5.9% YoY to $187.9 billion in Q2 FY27, in comparison to $177.4 billion in the same period a year earlier.

While the operating income increased 28.8% in the June quarter to $9.4 billion, in comparison to $7.3 billion in the same period of the previous financial year, as per the official filing.

How have Walmart shares performed?

Walmart share prices have delivered more than 126% returns to their investors in the last five years and over 11% gains in the last one-year period, according to MarketWatch data.

The company shares were up 1.3% on a year-to-date (YTD) basis, but has lost 7% in the last six month period, as per the exchange data. However, Walmart shares were up 1.8% in the past one-month.

Shares of Walmart surged to their 52-week high of $135.16 apiece, while the 52-week low was at $95.42 apiece. The store retailer’s market capitalisation (m-cap) was at $909.61 billion as of the trading session on Thursday, August 20, 2026.