How Will Walmart Stock React To Its Upcoming Earnings?
Walmart (NASDAQ:WMT) is set to report its earnings on Thursday, August 20, 2026. The company has $918 billion in current market capitalization. Revenue over the last twelve months was $725 billion, and it was operationally profitable with $30 billion in operating profits and net income of $23 billion. While the post-earnings stock reaction will depend on how the results and outlook stack up against investor expectations, a detailed look at historical results can aid you if you are an event-driven trader.
Here is how: either understand the historical odds and position yourself prior to the earnings announcement, or look at the correlation between immediate and medium-term returns post earnings and enter a trade one day after the announcement.
See earnings reaction history of all stocks
Ask yourself – Is holding WMT stock risky? Of course it is. The Trefis High Quality Portfolio mitigates that risk.
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Walmart’s Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
- There are 19 earnings data points recorded over the last five years, with 10 positive and 9 negative one-day (1D) returns observed. In summary, positive 1D returns were seen about 53% of the time.
- However, this percentage decreases to 42% if we consider data for the last 3 years instead of 5.
- Median of the 10 positive returns = 4.6%, and median of the 9 negative returns = -4.5%
Additional data for observed 5-Day (5D) and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D | 5D | 21D |
| 5/21/2026 | -7.3% | -9.1% | -10.4% |
| 2/19/2026 | -1.4% | -0.7% | -4.4% |
| 11/20/2025 | 6.5% | 8.4% | 12.1% |
| 8/21/2025 | -4.5% | -6.3% | -0.2% |
| 5/15/2025 | -0.5% | -0.4% | -2.5% |
| 2/20/2025 | -6.5% | -7.5% | -17.5% |
| 11/19/2024 | 3.0% | 6.4% | 11.5% |
| 8/15/2024 | 6.6% | 9.9% | 17.7% |
| 5/16/2024 | 7.0% | 9.1% | 12.0% |
| 2/20/2024 | 3.2% | 5.0% | 7.6% |
| 11/16/2023 | -8.1% | -8.9% | -9.7% |
| 8/17/2023 | -2.2% | -0.7% | 3.4% |
| 5/18/2023 | 1.3% | -1.3% | 4.0% |
| 2/21/2023 | 0.6% | -3.4% | -3.7% |
| 11/15/2022 | 6.5% | 9.2% | 6.4% |
| 8/16/2022 | 5.1% | 1.5% | 1.7% |
| 5/17/2022 | -11.4% | -17.3% | -19.5% |
| 2/17/2022 | 4.0% | 0.7% | 9.3% |
| 11/16/2021 | -2.5% | -1.4% | -0.4% |
| SUMMARY STATS | |||
| # Positive | 10 | 8 | 10 |
| # Negative | 9 | 11 | 9 |
| Median Positive | 4.6% | 7.4% | 8.4% |
| Median Negative | -4.5% | -3.4% | -4.4% |
| Max Positive | 7.0% | 9.9% | 17.7% |
| Max Negative | -11.4% | -17.3% | -19.5% |
Correlation Between 1D, 5D and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves “long” for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on a 5-year and a 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
| History | 1D_5D | 1D_21D | 5D_21D |
|---|---|---|---|
| 5Y History | 53.5% | 54.9% | 27.9% |
| 3Y History | 76.6% | 67.8% | 52.1% |
Is There Any Correlation With Peer Earnings?
Sometimes, peer performance can have an influence on post-earnings stock reaction. Some of that pricing-in may even begin before the earnings are announced. Here is some historical data on the past post-earnings performance of Walmart stock compared with the stock performance of peers that reported earnings just before Walmart. For fair comparison, peer stock returns also represent post-earnings one-day (1D) returns.
| 1D Return | Peer Post-Earnings 1D Return | ||
|---|---|---|---|
| WMT Earnings Dates | WMT | AMZN | HD |
| 5/21/2026 | -7.3% | 0.8% | 0.9% |
| 2/19/2026 | -1.4% | -5.6% | N/A* |
| 11/20/2025 | 6.5% | 9.6% | -6.0% |
| 8/21/2025 | -4.5% | -8.3% | 3.2% |
| 5/15/2025 | -0.5% | -0.1% | N/A* |
| 2/20/2025 | -6.5% | -4.1% | N/A* |
| 11/19/2024 | 3.0% | 6.2% | -1.3% |
| 8/15/2024 | 6.6% | -8.8% | 1.2% |
| 5/16/2024 | 7.0% | 2.3% | -0.1% |
| 2/20/2024 | 3.2% | 7.9% | N/A* |
| 11/16/2023 | -8.1% | 6.8% | 5.4% |
| 8/17/2023 | -2.2% | 8.3% | 0.7% |
| 5/18/2023 | 1.3% | -4.0% | -2.2% |
| 2/21/2023 | 0.6% | -8.4% | N/A* |
| 11/15/2022 | 6.5% | -6.8% | N/A* |
| 8/16/2022 | 5.1% | 10.4% | N/A* |
| 5/17/2022 | -11.4% | -14.0% | N/A* |
| 2/17/2022 | 4.0% | 13.5% | N/A* |
| 11/16/2021 | -2.5% | -2.2% | N/A* |
| CORRELATION | 34.3% | -67.3% | |
* N/A indicates no comparable post-earnings session for that peer in that quarter
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