Walmart’s Stock Drops, But the Business Keeps GrowingWalmart Inc.BATS:WMTmoonyptoWalmart’s Q2 FY27 revenue increased 6% year over year to $187.9 billion, beating estimates by $1.1 billion, while adjusted EPS came in at $0.81, $0.07 above expectations. However, Walmart US comparable sales grew just 2.6%, its weakest pace in more than six years and below the 3.7% consensus estimate, sending the stock sharply lower. Transactions still increased 1.5% The headline comp number doesn’t tell the whole story. New federal drug-pricing rules created roughly a 125 basis point drag on US comps.. Excluding Health & Wellness, comps grew 3.4%. Walmart also used part of its tariff refunds to lower prices on more than 11,000 products. Meanwhile, the company continues to gain market share, especially in grocery and among higher-income consumers More importantly, the parts of Walmart that are increasingly driving its economics remain much stronger than its physical store sales. Global e commerce grew 23%, advertising jumped 38%, and membership revenue increased 17%. Walmart US e commerce has now posted growth above 20% for 10 straight quarters, while profitability continues to improve as stores increasingly double as fulfillment centers Fuel costs remain a headwind, with incremental FY27 fuel expenses now expected to exceed $2 billion. Walmart also plans to keep putting tariff refunds toward lower prices, which is weighing on near term earnings and led to Q3 adjusted EPS guidance of $0.62 to $0.64, below consensus Despite those near term pressures, Walmart raised its FY27 sales growth outlook to 4%–5%, up from 3.5%–4.5%, and lifted adjusted operating income growth guidance to 7%–8.5%, compared with 6%–8% previously The slowdown in US comps looks more related to pharmacy pricing than a loss of market share. Underneath the headline number, e-commerce, advertising, membership, and marketplace are all growing much faster than traditional retail. Walmart is increasingly evolving from a traditional retailer with digital businesses on the side into a broader omnichannel platform powered by its massive retail footprint.