Latest quarter

Walmart reported Q2 FY2027 revenue of $187.9 billion, up 5.94% from $177.4 billion a year earlier. Revenue exceeded the consensus of $186.3 billion by 0.90%. The company reported adjusted EPS of $0.81, compared with the consensus of $0.73, or 11.0% above the consensus.

The filing shows diluted EPS of $0.80, down 9.09% from $0.88 in Q2 FY2026. Walmart said consolidated revenue growth reflected positive comparable sales in its U.S. segments and international markets, driven by transaction growth; it also said eCommerce net sales grew 23%, primarily driven by store- and club-fulfilled delivery. Gross margin was 26.1%, versus 25.2% a year earlier, while operating margin was 4.99%, versus 4.11%. The filing attributed the gross-profit-rate increase primarily to tariff refunds, partly offset by price investments and higher supply-chain fuel costs. Free cash flow was $7.6 billion, up 15.7% from $6.5 billion.

Walmart’s Q2 revenue growth of 5.94% was above its 4.00% to 5.00% guidance range, while reported operating-income growth of 28.8% was above its 7.00% to 10.0% guidance range.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Chief Executive Officer John Furner said the company gained market share, grew units and transactions, and recorded membership-fee-revenue growth of 17% during the quarter. He said global e-commerce sales grew 23%, including 24% growth for Walmart U.S., 26% for Sam’s Club U.S. and 19% internationally. Furner also said advertising rose 38% and U.S. marketplace sales grew 52%.

Furner said customers remained focused on value and convenience, and that Walmart made more than 11,000 rollbacks during the quarter, compared with 7,200 at the end of the first quarter. He said the company deployed much of the tariff-refund benefit into price. Chief Financial Officer John David Rainey said Walmart had received substantially all of approximately $2.9 billion of eligible tariff refunds and was prioritizing grocery and general-merchandise price investments.

Rainey said adjusted operating-income growth included the tariff-refund benefit, while underlying operating-income growth excluding that benefit was at the top end of the company’s 7% to 10% guidance. He said the company expected the pricing actions taken in Q2 and continued tariff-refund investment to affect Q3, and encouraged investors to consider the two quarters together. Rainey also said Walmart U.S. e-commerce achieved double-digit incremental margins in the first half, citing advertising and membership revenue, delivery-network density, fee-based fast deliveries and automation.

In the question-and-answer session, analysts asked about consumer pressure, price investments, health-and-wellness sales, inventory and inflation. Rainey said higher fuel prices had created incremental consumer pressure compared with the start of the year, while Furner said price reductions initially lifted unit volumes and could produce effects over subsequent weeks and months. Rainey said maximum fair pricing regulation was affecting Walmart U.S. comparable sales but not the profit contribution of the health-and-wellness business. Furner said he had no major inventory concerns and that fuel costs were the principal inflation item the company was monitoring.

Guidance

Walmart raised its FY2027 constant-currency net-sales-growth outlook to 4.00% to 5.00%, from 3.50% to 4.50%. The company raised its FY2027 constant-currency adjusted-operating-income-growth outlook to 7.00% to 8.50%, from 6.00% to 8.00%, and raised FY2027 adjusted EPS guidance to $2.80 to $2.87 from $2.75 to $2.85. Walmart expects Q3 FY2027 constant-currency net-sales growth of 3.00% to 3.75%, adjusted operating-income growth of 2.00% to 4.00%, and adjusted EPS of $0.62 to $0.64. Rainey said capital expenditures are now expected to be approximately 4.00% of annual net sales.