Key Takeaways
- Walmart’s second-quarter revenue rose 5.9% to $187.9 billion
- U.S. comparable sales grew 2.6%
- This has been the slowest quarterly growth in more than six years.
Walmart Q2 sales and profit growth came in strong, but slower U.S. sales raised concerns about consumer spending and pushed shares lower.
Walmart revenue and profit beat expectations
Walmart’s revenue reached $187.9 billion in the fiscal second quarter, up 5.9% from a year earlier. The result topped Wall Street expectations of about $186.8 billion.
Adjusted earnings came to 81 cents per share, above the 74-cent analyst estimate. Operating income rose 28.8% to about $9.4 billion, helped by stronger gross profit and growth across several business areas.
Net income fell 9.4% to $6.37 billion. Walmart said investments and other factors affected the bottom line even as operating income improved.
The company also continued to expand its digital business. Global e-commerce sales increased 23% during the quarter. Advertising revenue rose 38%, while global membership fee revenue increased 17%.
U.S. sales growth slows
The biggest concern came from Walmart’s U.S. stores. Comparable sales increased 2.6%, down from 4.1% in the previous quarter and the weakest growth in more than six years.
The result fell below the roughly 3.8% growth analysts expected. Store sales weakened slightly, while pharmacy and health-related sales also faced pressure. Excluding the health and wellness business, U.S. comparable sales growth was stronger.
Walmart has also seen customers change how they spend. Some shoppers have become more selective, while the company continues to attract higher-income households. The retailer has responded by lowering prices on thousands of products and using a $2.9 billion tariff refund to support those price cuts.
E-commerce provided a stronger counterpoint. U.S. online sales rose 24%, with stores handling most online order fulfillment. That gives Walmart a way to grow digital sales while using its large store network.
Walmart raises full-year outlook but gives cautious Q3 forecast
Despite weaker Walmart Q2 sales growth in the U.S., Walmart raised its full-year fiscal 2027 outlook. The company now expects net sales to increase between 4% and 5%.
It also expects adjusted earnings per share of $2.80 to $2.87 for the full fiscal year. The new outlook reflects continued growth in e-commerce, advertising, membership revenue and other parts of the business.
The near-term forecast looks more cautious. Walmart expects third-quarter sales to grow between 3% and 3.75%. Adjusted earnings per share should reach 62 to 64 cents, below the 68-cent market expectation reported before the results.
The weaker forecast overshadowed the strong quarterly results. Walmart shares fell about 9% after the earnings release, reflecting concerns about slower U.S. sales and the outlook for the next quarter.
Walmart Q2 sales results show a mixed picture. The retailer continues to grow revenue, operating income and digital sales, while slower store sales point to a more cautious U.S. consumer. The company’s ability to maintain sales growth while investing in lower prices will remain important in the coming quarters.
