Stock Market Today, Feb. 19: Walmart Falls After Cautious Profit Outlook Despite Strong E-Commerce Growth

Walmart (NASDAQ:WMT), a global retail and e-commerce operator, closed Thursday at $124.87, down 1.38%. The stock moved as investors weighed a solid fiscal Q4 earnings beat and robust e-commerce growth against Walmart’s cautious profit outlook and commentary on a “somewhat unstable” consumer backdrop. Investors are also balancing how guidance shapes expectations for fiscal 2026.
Trading volume reached 42.1 million shares, about 34% above its three-month average of 31.4 million shares. Walmart IPO'd in 1972 and has grown 581,123% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) slipped 0.29% to 6,862, while the Nasdaq Composite (NASDAQINDEX:^IXIC) declined 0.31% to finish at 22,683. Among discount stores, Costco Wholesale (NASDAQ:COST) closed at $987.82 (-0.83%) and Target (NYSE:TGT) finished at $115.66 (+0.00%), underscoring mixed sentiment across large retail peers.

What this means for investors

Walmart had significant increases in e-commerce and online pickup and delivery orders, especially among consumers with higher incomes. But investors felt its cautious outlook may signal a tough road for the stock price going forward.

In Walmart’s first earnings report since John Furner took over as CEO on Feb. 1, the company reported holiday-quarter sales rose 5% on a constant-currency basis. Operating income grew nearly 11%, as e-commerce sales grew 25% globally and 27% in the U.S.

That beat estimates and showcased how returns from tech and AI investments are paying off. With shares recently up over 20% just this year and with cautious comments especially about low-income consumers, investors took some profits today.

Howard Smith has positions in Target. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.