The world's largest retailer, however, slightly raised its annual sales and profit targets for the first time this year, with CEO John Furner pointing to growth in its e-commerce division.
The results offer a key read on the retail bellwether's ability to attract price-sensitive shoppers, who are prioritizing groceries and other essentials over discretionary spending ahead of the back-to-school and holiday seasons.
The company's quarterly U.S. same-store sales rose 2.6%, compared with estimates of a 3.8% increase, according to data compiled by LSEG. Average ticket, or spending per transaction, grew 1.1%, well below a 3.1% rise a year ago.
The report was unusual for Walmart, which has a track record of lifting forecasts during the year and comfortably beating comparable sales estimates.
"For the consumer economy, this is like Nvidia posting a slowdown. Walmart has been winning the trade-down trade, but that tailwind may be fading," said Brian Jacobsen, chief economic strategist at Annex Wealth Management.
The company now expects fiscal 2027 net sales to grow between 4% and 5%, compared with its earlier target of growth between 3.5% and 4.5%.
Walmart also reported a drop in sales at its U.S. pharmacy business, as lower prices negotiated under the Inflation Reduction Act's Maximum Fair Price program reduced the amount consumers spent on each visit.
Excluding the impact from the act, Walmart said its core U.S. comparable sales rose 3.4%.
The retailer has lowered prices on more than 7,000 items this year, supporting margins through lucrative side businesses such as advertising and a growing third-party marketplace.
Walmart Connect, the U.S. advertising business, grew 43%, while its e-commerce sales increased 24%.
Walmart said on Thursday that it would continue to direct the tariff refunds it received into lowering prices. Its adjusted operating income included a 750-basis-point benefit from tariff refunds.
It reported mid-single-digit growth in grocery, which is its biggest merchandising category. General merchandise, which includes toys and apparel, was up in the low-single digits.
On Wednesday, retailer Target (TGT.N) raised its annual forecasts for a second time this year, reaping early rewards from a turnaround effort.
Walmart now expects annual adjusted earnings per share of between $2.80 and $2.87, compared with its earlier target of between $2.75 and $2.85.
It expects third-quarter adjusted earnings per share of between 62 cents and 64 cents, below estimates of 68 cents, while its net sales growth target of 3% to 3.75% was also lower.
