President Trump’s start-and-stop tariff bombshells are shaking up this earnings season.
On Wednesday, both Delta Air Lines and Walmart withdrew financial guidance, blaming growing uncertainty around U.S. trade policy.
The move came just hours after Trump abruptly announced a 90-day pause on reciprocal tariffs for everyone but China — a U-turn that only added to the confusion.
Although stocks surged on the news, the whiplash underscores what Delta CEO Ed Bastian called “uncharted, unprecedented uncertainty.”
“We’re in uncharted, unprecedented uncertainty when you look at what’s happening and to pivot so quickly to this self-inflicted situation,” Bastian told CNBC on Wednesday.
He criticized the administration’s aggressive, all-at-once approach to tariffs, saying, “Trying to do it all at the same time has created chaos in terms of being able to make plans.”
Delta now expects second-quarter revenue to range from a 2% decline to a 2% gain — a wide spread that underscores just how murky the outlook has become.
In its earnings release, Delta said it would hold off on 2025 guidance due to the “current uncertainty,” pledging to update investors later this year “as visibility improves.”
Just three months ago, Bastian had projected a record year for profits, but that optimism has since faded. “Everything has stalled,” he said.
“There’s been a freeze until we get better clarity. And the hope is that the administration moves quickly through the uncertainty, or I think our economy is going to continue to lose steam.”
Delta had been projecting second-half growth of around 4%, but it's now expecting flat results. “We’re taking second-half growth out of our plan,” Bastian said. “If we don’t get a resolution soon, we’ll probably end up in a recession.”
Despite the downbeat forecast, shares of Delta (DAL) surged 23.4% Wednesday, lifted by hopes that the company is being too conservative with estimates.
Walmart flags volatile sales as trade war enters new phase
Retail giant Walmart also shelved its operating income outlook for the quarter, citing deteriorating consumer sentiment and rapidly shifting sales volumes.
“Operating income has been harder to predict and we’re widening our range of scenarios given the current backdrop,” CFO John David Rainey told investors at the company’s Investment Community Meeting.
He added that sales have turned volatile “week to week, and frankly, day to day.”
The company still expects revenue growth in the 3% to 4% range, but Rainey said it’s too early to assess how much the new tariff structure will weigh on performance.
“We’re one week into this new tariff environment and we’re still working through what this means for us,” he said.
Walmart CEO Doug McMillon compared today’s uncertainty to the post-9/11 economy, the 2008 financial crisis, and COVID, but said the company is better prepared this time around.
“While in the short-term we are not immune to some of the effects, we are in position to play offense,” McMillon said. “Nothing about the current environment impacts our confidence in our business or our strategy.”
Shares of Walmart (SMT) gained 9.6% on the day.
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