HSBC analysts cut their rating on Walmart to 'hold' from 'buy' following the retailer's quarterly earnings report, citing a surprisingly weak full-year outlook. The downgrade comes as Walmart's fiscal 2027 adjusted earnings per share guidance of $2.75 to $2.85 fell short of Wall Street expectations of $2.97.

In a research note, HSBC analysts including Joe Thomas and Guilherme Domingues described Walmart's quarterly results as 'solid' but criticized the guidance as 'weak.' The analysts noted that Walmart executives emphasized the 'conservatism' of their projections during the post-earnings call, despite reporting no significant changes in consumer behavior or key performance indicators.

Walmart's first-quarter guidance of $0.63 to $0.65 per share also missed analyst estimates of $0.69. The company cited 'substantial uncertainty' around currency fluctuations, tariffs, and global events as factors affecting its outlook. Fourth-quarter adjusted earnings came in at $0.74 per share on revenue of $190.66 billion, slightly above analyst expectations.