Walmart Stock Plummets 6% Amid Consumer Spending Concerns

Walmart shares suffered their steepest single-day decline in 13 months, dropping over 6% despite meeting earnings estimates. First-quarter revenue of $177.75 billion surpassed expectations, but cautious guidance for Q2 rattled investors. The retailer maintained full-year sales projections near the upper end of its 3.5%-4.5% growth range.

E-commerce surged 26% year-over-year while advertising revenue jumped 37%, signaling successful digital transformation efforts. CFO John David Rainey noted growing pressure on low-income consumers as gas prices hit $4.56 per gallon, creating uneven spending patterns across demographic groups.

The market reaction highlights how even minor guidance misses can trigger outsized moves in richly valued stocks. Walmart had outperformed the S&P 500 with a 17% gain year-to-date before the earnings report, leaving little margin for disappointment.