Walmart Inc.
WMT · Nasdaq
Next quarter
Expected to report Nov 19, 2026 — estimated from last year’s reporting date.
Consensus is $0.63 EPS for Oct 2026 across 11 estimates, ranging $0.62 to $0.66.
WMT Jul 2026
- 10.96%
- $0.73
- $0.81
- —
- $186.10B
Reported results
- $186.10B
- 25.41%
- $9.38B
- 5.04%
- $6.37B
- $0.80
Highlights
- Earnings beat: Adjusted EPS was $0.81 versus consensus of $0.73, a 10.96% surprise; GAAP diluted EPS was $0.80.
- Sales growth: Total revenue rose 5.9% year over year to $187.9 billion, or 5.1% in constant currency, versus $175.7 billion in Q2 FY26 and $175.7 billion in Q1 FY27.
- Operating leverage: GAAP operating income increased 28.8% to $9.4 billion; adjusted operating income rose 17.4% in constant currency to $9.25 billion.
- Digital and ancillary growth: Global eCommerce sales grew 23%, global advertising increased 38%, and membership fee revenue rose 17%.
- U.S. performance: Walmart U.S. comparable sales excluding fuel increased 2.6%, with transactions up 1.5% and eCommerce contributing approximately 510 basis points; operating income rose 20.6% to $8.1 billion.
- Tariff timing: Operating income benefited from tariff refunds and higher gross profit, while price investments offset part of the benefit; management said underlying operating-income growth was at the top end of guidance.
- Outlook raised: FY27 constant-currency sales growth is now expected at 4.0%-5.0%, adjusted operating-income growth at 7.0%-8.5%, and adjusted EPS at $2.80-$2.87, up from prior ranges of 3.5%-4.5%, 6.0%-8.0%, and $2.75-$2.85.
- Cash and investment: Six-month operating cash flow increased $1.4 billion to $19.7 billion, but free cash flow fell $1.4 billion to $5.5 billion as capital expenditures rose $2.8 billion to $14.2 billion.
Analysis
Walmart’s fiscal second quarter was a clear earnings beat with strong operating performance, although the headline profit increase was amplified by tariff refunds and the year-ago comparison included unusual investment gains. Adjusted EPS of $0.81 exceeded the $0.73 consensus by 10.96%, while GAAP diluted EPS was $0.80, down 9.1% from $0.88 a year ago but up from $0.67 in Q1 FY27. Revenue of $187.9 billion increased 5.9% year over year and 7.0% sequentially, while operating income rose 28.8% year over year to $9.4 billion and 25.3% from the prior quarter’s $7.5 billion.
The central operating story remained Walmart’s omnichannel and higher-margin ancillary businesses. Global eCommerce grew 23%, advertising increased 38%, and membership fee revenue rose 17%; Walmart U.S. eCommerce grew 24% and Sam’s Club eCommerce 26%. U.S. comparable sales excluding fuel were more moderate at 2.6%, partly constrained by a 125-basis-point pharmacy deflation headwind. Gross margin expanded 96 basis points, primarily from tariff refunds and mix, but the company is redirecting remaining refunds into price investments. Walmart raised FY27 guidance, while cautioning that Q3 sales will face a more than 100-basis-point timing headwind from Flipkart’s Big Billion Days shift.
Earnings and guidance
The quarter combined a material earnings beat with a higher full-year outlook. Adjusted EPS of $0.81 was $0.08 above the $0.73 consensus, while GAAP EPS was $0.80. The year-over-year adjusted comparison was also stronger than the GAAP comparison: adjusted EPS increased from $0.68 in Q2 FY26, or 19.1%, as the prior-year period included a net $0.26-per-share benefit from investment gains. Walmart said Q2 and Q3 should be viewed together because tariff refunds received in Q2 will be used for price investments in the second half.
- Q3 outlook: Constant-currency net sales are expected to increase 3.0%-3.75%, adjusted operating income 2.0%-4.0%, and adjusted EPS is expected at $0.62-$0.64 versus $0.62 in the year-ago base.
- FY27 outlook: Sales growth was raised to 4.0%-5.0% from 3.5%-4.5%, adjusted operating-income growth to 7.0%-8.5% from 6.0%-8.0%, and adjusted EPS to $2.80-$2.87 from $2.75-$2.85.
- Investment intensity: Full-year capital expenditures are now expected at approximately 4.0% of sales, versus approximately 3.5% in the original outlook.
Omnichannel and monetisation
Digital growth and the businesses attached to Walmart’s customer traffic were the defining structural positives. Global eCommerce sales rose 23%, led by store-fulfilled pickup and delivery and marketplace activity. Advertising growth was broad-based, and membership income continued to grow faster than retail sales. These businesses are helping Walmart expand its ecosystem while improving the economics of online fulfillment.
- eCommerce: Global sales increased 23%; Walmart U.S. grew 24% and Sam’s Club U.S. grew 26%, while Walmart International increased 19%.
- Advertising: The global advertising business grew 38%, including a 38% increase in Walmart U.S. and a 43% increase in Walmart Connect excluding VIZIO; International advertising grew 20%, led by Flipkart Ads.
- Membership: Global membership fee revenue increased 17%. Walmart U.S. membership revenue grew double digits and Walmart+ delivered a record second-quarter high for net adds; Sam’s Club membership revenue increased 6%.
Walmart U.S.
Walmart U.S. delivered steady top-line growth and substantially stronger profit growth. Net sales rose 3.5% to $125.2 billion and operating income increased 20.6% to $8.1 billion. Comparable sales excluding fuel grew 2.6%, below the 4.6% prior-year rate, but transactions continued to increase and digital remained a significant contributor. The reported comp was held back by health and wellness, including a 125-basis-point pharmacy deflation headwind from new maximum fair price regulation.
- Traffic and mix: Transactions rose 1.5%, average ticket increased 1.1%, and eCommerce contributed approximately 510 basis points to comparable sales.
- Margin: Gross profit grew 9.4%, with the gross profit rate expanding 158 basis points to 29.4%, primarily from tariff refund benefits and improved mix, partly offset by price investments and higher fuel costs.
- Costs: Operating expenses increased 6.8% and deleveraged 72 basis points because of higher claims, depreciation, and associate healthcare costs, but improved eCommerce economics supported operating-income growth.
International and Sam’s Club
International and Sam’s Club provided additional growth breadth, with currency making International’s reported results look stronger than its underlying performance. International net sales rose 12.8% to $35.2 billion, or 7.9% in constant currency, and constant-currency operating income grew 5.7% to $1.3 billion. Sam’s Club’s performance was stronger on both traffic and profit, though average ticket declined as transactions and unit volumes increased.
- International: Transaction counts and unit volumes increased across markets; operating-income growth benefited from lower eCommerce losses and mix changes. Currency added $1.5 billion to sales and $0.1 billion to operating income.
- Sam’s Club sales: Net sales rose 8.8% to $25.7 billion, while comparable sales excluding fuel increased 4.4%; transactions rose 7.0% and average ticket fell 2.5%.
- Sam’s Club profit: Operating income increased 44.3% to $678 million, or 23.3% on an adjusted basis, helped by tariff refunds and membership growth.
Cash and capital allocation
Walmart is funding a higher-investment growth strategy while continuing to return capital. Six-month operating cash flow increased 7.4% to $19.7 billion, but free cash flow declined 20.4% to $5.5 billion because capital expenditures rose to $14.2 billion from $11.4 billion. The company said the incremental spending supports its omnichannel growth strategy.
- Balance sheet: Cash and equivalents were $11.5 billion at July 31, 2026, against total debt of $57.2 billion and inventory of $61.6 billion.
- Inventory: Global inventory increased 6.7%, or 6.0% in constant currency, reflecting strategic initiatives and inflation.
- Buybacks: Walmart repurchased 42.3 million shares year to date for $5.1 billion, leaving $25.1 billion under its $30 billion authorization approved in February 2026.
- Returns: Trailing-twelve-month ROI improved to 15.4% from 15.1% a year earlier, while ROA declined to 8.0% from 8.3% because of higher assets and investment valuation effects.
