Walmart beats Street on Q2 EPS, revenues; misses on U.S. comp sales
Walmart Inc. overall had a good second quarter of fiscal 2027 but showed disappointing U.S. same-store sales.
The discount giant reported total revenues of $187.9 billion, up 6% from $177.4 billion in the second quarter of fiscal 2026. Adjusted earnings per share (EPS) rose 19% year over year to $0.81 from $0.68, although investment losses drove net income down 9 % to $6.37 billion from $7.03 billion.
Walmart exceeded analyst projections of $186.7 billion in total revenues and $0.74 in EPS. However, U.S. comparative sales fell short of Wall Street expectations, only rising 2.6% year over year while analysts had predicted an increase of 3.7 to 3.8%.
E-commerce sales were another bright spot for Walmart, increasing 24% in the U.S. and 23% globally with what the company said was strength “in store-fulfilled delivery, advertising and marketplace.”
[READ MORE: Walmart expands marketplace shipping to Mexico]
E-commerce sales also rose 26% year over year in the Sam’s Club warehouse club segment and contributed to comp sales performance. Another strong point was Walmart’s advertising business, which expanded 38% both globally and in the U.S., driven by factors such as the company’s Walmart Connect closed-loop commerce media business in the U.S.
In commentary to CNBC, Walmart CFO John David Rainey said high gas prices are affecting consumer spending in areas such as beef. However, Rainey said real wages have been keeping pace with inflation and consumers are still spending.
(“A)ll that said, we would love to be able to bring prices down more and see less pressure on their wallets,” Rainey told CNBC. The company plans to use a total of $2.9 billion it expects to receive in refunds on tariffs paid on imported products under the International Emergency Economic Powers Act, or IEEPA. to reduce prices in the third quarter, although higher fuel prices will create “incremental cost headwinds.”
Net sales by segment
Walmart U.S. - $125.2 billion, up 3.5% from $120.9 billion.
Walmart International - $35.2 billion, up 13% from $31.2 billion.
Sam’s Club - $25.7 billion, up 9% from $23.6 billion.
Guidance
For the third quarter of fiscal 2027, Walmart expects net sales to grow 3 to 3.75% year over year and adjusted EPS to reach $0.62 to $0.64 per share. The company increased its full fiscal year guidance to net sales growth of 4 to 5% from 3.5 to 4.5% and adjusted EPS of $2.80 to $2.87 per share from $2.75 to $2.85 per share.
“Our team delivered another good quarter, and we continue to make steady progress on the long-term value drivers of our business,” John Furner, president and CEO of Walmart, said in the company’s earnings release. “Our multi-year growth in e-commerce is evidence that customers are choosing Walmart because we deliver price, speed, and convenience across a broad assortment. At Walmart, they can have it all.”
Based in Bentonville, Ark., Walmart Inc. runs 10,900 stores and numerous e-commerce websites in 19 countries.
