Walmart's Dismal Forecast Overshadows Quarterly Win

Core Viewpoint - Walmart Inc's stock has dropped 6.5% to $97.27 despite reporting a fourth-quarter earnings beat, as the company provided weaker-than-expected guidance for the fiscal year [1][2]. Financial Performance - For the fourth quarter, Walmart reported adjusted earnings per share of 66 cents and revenue of $180.55 billion [1]. - The company forecasts earnings per share for 2026 to be between $2.50 and $2.60, which is below analyst expectations [2]. Market Reaction - The update from Walmart is causing ripples across the broader market, contributing to increased volatility [2]. - There is significant activity in the options market, with 104,000 calls and 116,000 puts traded, which is eight times the average intraday volume [3]. Stock Performance - Today's decline has caused Walmart to distance itself from its record high of $105.30 on February 14, slipping below its 20-day moving average, although the 50-day trendline continues to provide support [4]. - Despite the current drop, Walmart has a year-to-date gain of 7.2% and a year-over-year increase of 67.2% [4].