Walmart (WMT) Reports Next Week: Wall Street Expects Earnings Growth

Walmart (WMT) is set to report Q2 FY25 earnings on August 21, with Wall Street expecting EPS of $0.72 (+7.5% YoY) on revenues of $175.51 billion (+3.7% YoY). The company is strongly positioned for an earnings beat, evidenced by a positive Zacks Earnings ESP of +4.95% and a Zacks Rank #2 (Buy), a combination historically predictive of positive surprises. This expectation is further reinforced by Walmart's consistent track record of beating consensus EPS estimates in the last four quarters, making it a compelling candidate for an upside surprise.

Analysis

Walmart is positioned for a likely earnings beat in its upcoming quarterly report for the period ending July 2025, scheduled for release on August 21. Wall Street's consensus projects solid year-over-year growth, with revenues expected at $175.51 billion, a 3.7% increase, and earnings per share at $0.72, representing a 7.5% rise. The probability of an upside surprise is underscored by a positive Zacks Earnings ESP of +4.95%, indicating that the most recent analyst estimates are more bullish than the standing consensus. This signal is amplified by the stock's Zacks Rank #2 (Buy), a combination that has historically preceded an earnings beat nearly 70% of the time. This optimistic outlook is further supported by the company's consistent performance history, having surpassed consensus EPS estimates in each of the last four quarters, including a significant 7.02% surprise in the prior quarter. While the consensus estimate itself has been stable over the last 30 days, the positive ESP suggests a recent shift in analyst sentiment leading into the report.

Key Decisions for Investors

• Given the combination of a positive Earnings ESP of +4.95% and a Zacks Rank #2, which historically indicates a high probability of an EPS beat, investors could consider maintaining or initiating bullish positions ahead of the release.
• Investors should recognize that while an earnings beat is probable, the market's reaction will also be heavily influenced by management's forward guidance and commentary on business conditions during the earnings call.
• Considering Walmart's track record of four consecutive EPS beats, a positive result may be partially priced in, so the magnitude of the surprise and the strength of the outlook will be critical for sustained upward momentum post-announcement.