Walmart Inc. (NASDAQ: WMT) reported second-quarter fiscal 2027 revenue of $187.9 billion, a 5.9% increase from the prior year, and raised its full-year outlook for sales, operating income, and earnings. The Bentonville, Ark.-based retailer posted adjusted earnings per share of $0.81 for the quarter ended July 31, 2026.
Walmart shares fell about 9% on Thursday after U.S. comparable sales growth came in below expectations and the retailer issued a cautious third-quarter outlook, despite raising its full-year forecasts.
The results arrive as U.S. retailers navigate pharmacy pricing regulation changes, evolving trade policy, and shifting consumer spending patterns. Walmart operates more than 10,900 stores and eCommerce sites across 19 countries, competing with Amazon, Costco, and Target in its core U.S. market.
#eCommerce Sales Grow 23% Across All Segments
Global eCommerce sales rose 23% in the quarter, led by store-fulfilled pickup and delivery and marketplace activity.
In the U.S., eCommerce sales increased 24%, contributing approximately 510 basis points to comparable sales growth. Sam's Club posted eCommerce growth of 26%, driven by club-fulfilled pickup and delivery.
Walmart U.S. comparable sales, excluding fuel, rose 2.6% in the quarter. Transaction growth of 1.5% and average ticket growth of 1.1% both contributed. The company reported a 125 basis point headwind from pharmacy deflation related to new maximum fair price regulation effective January 1.
The global advertising business grew 38%, while Walmart U.S. advertising also increased 38%. Walmart Connect, excluding VIZIO, grew 43%. Membership fee revenue increased 17% globally, and Walmart+ net adds reached a record second quarter high, the company said.
"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 earnings release.
#Tariff Refunds Boost Operating Income as Walmart Reinvests in Prices
Consolidated operating income rose 28.8% to $9.4 billion on a reported basis. On an adjusted constant currency basis, operating income grew 17.4%.
The company said tariff refunds received during the quarter contributed to higher gross profit, which expanded 96 basis points. Walmart said it is prioritizing remaining tariff refunds into price investments for consumers.
Walmart U.S. operating income increased 20.6% to $8.1 billion. Sam's Club U.S. operating income rose 44.3% to $678 million on a reported basis, or 23.3% on an adjusted basis.
Walmart International net sales grew 12.8% to $35.2 billion, or 7.9% in constant currency. Operating income in the segment increased 16.6% on a reported basis and 5.7% in constant currency.
Free cash flow for the first six months of fiscal 2027 totaled $5.5 billion, a decrease of $1.4 billion from the prior year period, as capital expenditures rose to $14.2 billion to support the company's omnichannel growth strategy. Walmart repurchased 42.3 million shares for $5.1 billion year to date, with $25.1 billion remaining under its $30 billion authorization approved in February 2026.
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#Walmart Raises Full-Year Sales and Earnings Guidance
Walmart raised its fiscal 2027 outlook, projecting net sales growth of 4% to 5% in constant currency, up from its original guidance of 3.5% to 4.5%.
The company now expects adjusted operating income growth of 7% to 8.5% in constant currency, compared with its initial range of 6% to 8%. Full-year adjusted EPS guidance increased to $2.80 to $2.87, from $2.75 to $2.85 previously.
For the third quarter, Walmart guided for net sales growth of 3% to 3.75% in constant currency and adjusted EPS of $0.62 to $0.64.
"Our operating income outlook reflects the continued prioritization of tariff refunds received in Q2 into customer experience and price investments in the second half," John David Rainey, executive vice president and chief financial officer, said in the earnings release. The company noted a timing shift of Flipkart's Big Billion Days between Q3 and Q4, which it expects will create a headwind of over 100 basis points to Q3 sales growth.