Walmart Inc. Walmart (WMT) shares are sliding on Friday, and it's not because the retail giant had a bad quarter. Quite the opposite: Walmart's first-quarter results, released Thursday, beat expectations on both the top and bottom lines. The problem? Management's outlook for the rest of the year was a lot more cautious than Wall Street had hoped.

Investors are focusing on the future, and the future, according to Walmart, looks a bit less rosy than analysts anticipated. That's why the stock is down 1.46% to $119.57 at the time of writing.

Guidance Misses Wall Street Estimates

First-quarter revenue grew 7.3% year-over-year to $177.8 billion, topping the consensus estimate of $175 billion. That's a solid beat. But when you're Walmart, the market cares about what's coming next.

For the second quarter, Walmart forecast adjusted earnings between 72 cents and 74 cents per share, below the 75 cents analysts were looking for. Revenue guidance of $182.8 billion to $184.6 billion also missed the $186.4 billion consensus. That gap between what Walmart sees and what Wall Street expects is the main reason for Friday's sell-off.

Walmart CFO Warns of Higher Shelf Prices

During Thursday's earnings call, Walmart's CFO delivered a sobering message: if the current elevated cost environment persists, shoppers should expect higher prices on store shelves. "If the current elevated cost environment persists, the company expects somewhat higher retail price inflation in the second quarter and the second half of the year," the CFO said. That's not exactly what investors want to hear from a company known for its low-price leadership.

E-Commerce Strengths Face Headwinds

The cautious outlook overshadowed what was otherwise a strong operational quarter. Walmart U.S. e-commerce sales surged 26%, driven by a 45% increase in store-fulfilled delivery and 50% growth in its Marketplace segment. Those are impressive numbers. But U.S. revenue growth faced a 100-basis-point headwind tied directly to pharmacy pricing changes, reminding us that even retail giants have to deal with sector-specific headwinds.

Walmart Outlook Falls Short

For the full fiscal year 2027, Walmart reaffirmed its guidance: adjusted earnings of $2.75 to $2.85 per share on revenue of $731.1 billion to $738.2 billion. Both metrics fall short of Wall Street forecasts, which called for $2.94 per share and $742.6 billion in revenue. That gap is fueling the Friday stock slide.

WMT Technical Analysis: Key Levels to Watch

Despite the recent dip, Walmart shares are still up 24.63% over the past 12 months. But the near-term chart has softened. The stock is trading 8.1% below its 20-day simple moving average (SMA), 5.9% below its 50-day SMA, and 4% below its 100-day SMA. It's still holding above the 200-day SMA (4.2% above), which keeps the longer-term trend constructive even as the shorter-term trend is being tested.

The moving-average structure remains broadly bullish—the 20-day is above the 50-day, and the 50-day is above the 200-day—but price being below the 20/50-day cluster suggests the market is asking for proof before chasing. Key resistance sits at $129, while key support is at $110.

For now, Walmart's strong quarter is being overshadowed by a cautious outlook. The question is whether the market will eventually reward the company for its conservative approach or continue to punish it for not being optimistic enough.