Walmart Reports Mixed Q2 Results, Raises Full-Year Sales Outlook

Walmart reported mixed second-quarter results for fiscal year 2026, with revenue exceeding expectations at $177.4 billion, a 4.8% increase year-over-year, driven significantly by a 25% surge in global eCommerce sales and strong growth in its advertising business. However, adjusted earnings per share of $0.68 fell short of analyst estimates, and operating income declined 8.2% due to legal and restructuring costs, despite a slight increase on a constant currency basis. The U.S. segment saw a 4.6% rise in comparable sales, particularly in grocery and health categories, while international sales grew 5.5%, led by markets like China and Flipkart, although operating income internationally declined due to investments. Walmart raised its full-year sales and earnings outlook, anticipating net sales growth of 3.75% to 4.75% in constant currency and adjusted EPS between $2.52 and $2.62, signaling confidence in its growth trajectory amid inflationary pressures and tariff-driven price increases. The company is successfully attracting price-sensitive shoppers with grocery discounts, fast shipping, and expanded product offerings despite challenging tariff environments affecting consumer prices. CEO Doug McMillon highlighted the importance of strategic investments in eCommerce, digital innovation, and AI in driving future growth.