Walmart Reports 5.9% Revenue Growth as E-Commerce Surges 23% in Q2
The retail giant raised its full-year outlook after second-quarter results showed strength across segments, with tariff refunds boosting gross margins.
Strong Quarter Across Segments
Walmart Inc. reported second-quarter fiscal 2027 revenue of $187.9 billion, representing growth of 5.9% year-over-year, or 5.1% in constant currency, according to its 8-K filing dated August 20, 2026. The results prompted the Bentonville-based retailer to raise its full-year outlook, with net sales now expected to grow 4.0% to 5.0% for fiscal 2027, up from prior guidance of 3.5% to 4.5%.
The company reported GAAP earnings per share of $0.80 and adjusted EPS of $0.81 for the quarter ended July 31, 2026 (8-K filing, 2026-08-20). Operating income surged 28.8% on a reported basis, or 17.4% on an adjusted constant-currency basis.
E-Commerce and Digital Advertising Drive Growth
Global e-commerce sales grew 23% during the quarter, "led by store-fulfilled pickup & delivery and marketplace," the filing stated. The digital momentum was broad-based: Walmart U.S. e-commerce increased 24%, Sam's Club U.S. e-commerce rose 26%, and Walmart International e-commerce grew 19%.
The company's global advertising business expanded 38%, with Walmart U.S. advertising up 38% and Walmart Connect increasing 43% excluding VIZIO (8-K filing, 2026-08-20). "At Walmart, they can have it all," said John Furner, President and CEO of Walmart, referring to the company's value proposition of "price, speed, and convenience."
Tariff Refunds Impact Margins
Gross profit rate increased 96 basis points, "primarily impacted by tariff refund impacts," though the company noted it was "partially offset by price investments in the quarter" (8-K filing, 2026-08-20). Executive Vice President and CFO John David Rainey indicated the company plans to prioritize "remaining tariff refunds into customer experience and price investments in the second half."
Walmart U.S. comparable sales grew 2.6%, which included an 80-basis-point headwind from health and wellness and a 125-basis-point headwind from pharmacy deflation related to new maximum fair price regulation effective January 1, 2026 (8-K filing, 2026-08-20).
Raised Guidance with Q3 Considerations
For the third quarter of fiscal 2027, Walmart expects net sales growth of 3.0% to 3.75% and adjusted operating income growth of 2.0% to 4.0% in constant currency. Adjusted EPS is projected at $0.62 to $0.64 (8-K filing, 2026-08-20).
The full-year adjusted EPS guidance was raised to a range of $2.80 to $2.87, up from the previous $2.75 to $2.85. Adjusted operating income is now expected to grow 7.0% to 8.5%, up from prior guidance of 6.0% to 8.0%.
Rainey noted that Q3 sales guidance reflects "a headwind of over 100bps to growth related to a timing shift of Flipkart's Big Billion Days between Q3 and Q4," encouraging analysts to "consider Q2 and Q3 performance together to assess the underlying growth of the business" (8-K filing, 2026-08-20).
Balance Sheet and Capital Allocation
The company reported cash and cash equivalents of $11.5 billion and total debt of $57.2 billion. Year-to-date through the second quarter, Walmart repurchased 42.3 million shares totaling $5.1 billion, leaving $25.1 billion remaining under the $30 billion authorization approved in February 2026 (8-K filing, 2026-08-20).
MarginX data shows the company will pay a cash dividend of $0.2475 per share on August 21, 2026.
This article was generated by MarginX from the 8-K filing on 2026-08-20. It is not investment advice.