Key Takeaways
- Walmart (WMT) reported a strong Q2 2026 with Adjusted EPS of $0.81, beating the $0.74 estimate, and raised its full-year earnings guidance to $2.80–$2.87.
- Meta Platforms (META) has quietly emerged as one of Microsoft's (MSFT) largest AI customers, reportedly spending hundreds of millions of dollars annually on Azure cloud services.
- CrowdStrike (CRWD) Global CTO Elia Zaitsev is departing to launch Cognition, a new $170 million venture fund focused on AI-driven cybersecurity.
- The European Commission confirmed EU gas storage is at 62% capacity, stating there is no immediate concern for winter supply despite geopolitical volatility.
- Qatar is intensifying mediation efforts between the U.S. and Iran, focusing on a diplomatic solution to reopen the Strait of Hormuz.
Retail and Corporate Earnings
Walmart (WMT) delivered a robust second-quarter performance for fiscal 2026, posting revenue of $187.94 billion, which exceeded analyst expectations of $186.87 billion. While U.S. comparable store sales (excluding gas) grew 2.6%, slightly trailing the 3.67% estimate, the company’s profitability remained strong with an Adjusted EPS of $0.81. Management expressed confidence in the consumer landscape by raising the full-year Adjusted EPS outlook to a range of $2.80 to $2.87, up from the previous $2.75 to $2.85.
Big Tech and Artificial Intelligence
In a significant shift in the competitive landscape, Meta Platforms (META) has become a premier customer for Microsoft (MSFT) Azure. Reports indicate that Meta is utilizing Microsoft’s infrastructure to scale its AI models, highlighting a deepening reliance between the two tech giants despite their competing AI ambitions. This partnership underscores the massive capital requirements of the AI era, as Meta’s annual spending on these services has reportedly reached the mid-hundreds of millions.
In the cybersecurity sector, CrowdStrike (CRWD) announced that its Chief Technology Officer, Elia Zaitsev, will leave the company. Zaitsev plans to launch Cognition, a venture capital firm targeting $170 million to invest in early-stage AI-cybersecurity startups. Market reaction was cautious, with CrowdStrike shares trading lower in pre-market sessions following the news of the high-profile departure.
Energy and Global Macroeconomics
The European Commission provided a reassuring update on energy security, noting that EU gas storage facilities are currently 62% full. While this level is lower than the 74% recorded during the same period last year, officials stated there is no immediate threat to the bloc's supply. The lower storage levels are attributed to higher global prices and ongoing regional tensions, but the Commission maintains that the EU is on track for the winter season.
On the diplomatic front, Qatar continues to serve as a critical intermediary between the United States and Iran. Qatari officials emphasized that their current focus is on securing a ceasefire and ensuring the freedom of navigation in the Strait of Hormuz. Oil markets remain sensitive to these negotiations, as a successful deal could significantly ease global supply constraints.
Economic Indicators and Crypto
Canada's CFIB Business Barometer for August came in at 57.8, a slight decrease from the previous month's 58.3. The data suggests that while small business sentiment remains in positive territory (above 50), uncertainty regarding trade and domestic demand continues to temper long-term optimism.
In the digital asset space, Ethereum (ETH) saw a notable price surge following a significant "whale" transaction. On-chain data revealed a new wallet deposited $20 million USDC to open a 4x long position on 20,000 ETH. The trader is currently holding an unrealized profit of approximately $6.66 million, as the asset responded positively to the large-scale accumulation.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.