Walmart Inc. reported adjusted earnings per share of $0.81 for the quarter, exceeding the $0.74 consensus estimate, while revenue reached $187.9 billion, up 5.9% year-over-year and above the $186.75 billion forecast. Despite the beat, shares fell 9.25% in premarket trading to $103.73, erasing earlier gains.
U.S. comparable sales at Walmart-owned stores, excluding fuel, rose 2.6%, missing the 3.67% estimate and marking the slowest growth in six years. The company cited an 80-basis-point drag from health and wellness, though global e-commerce sales surged 23%. Advertising revenue, a key growth driver, climbed 38% both globally and in the U.S., while gross profit margins expanded by 96 basis points. Operating income increased 28.8%, or 17.4% on an adjusted constant-currency basis.
Third-quarter guidance reflected cautious optimism, with adjusted EPS projected between $0.62 and $0.64, compared with $0.62 a year earlier. Net sales are expected to grow 3.0% to 3.75% in constant currency, while adjusted operating income is forecast to rise 2.0% to 4.0%. The outlook includes a headwind of more than 100 basis points due to a timing shift in Flipkart’s Big Billion Days promotion from Q3 to Q4.
For fiscal 2027, Walmart raised its full-year adjusted EPS guidance to $2.80-$2.87, up from the prior range of $2.75-$2.85, lifting the midpoint to $2.835. The company also increased its full-year net sales growth forecast to 4.0%-5.0% in constant currency, from 3.5%-4.5% previously.
Analysts were critical of the results. Mizuho’s David Bellinger described the report as a "worst-case scenario" and "one of the biggest misses in years," while CEO John Furner emphasized steady progress on long-term value drivers. CFO John David Rainey noted that tariff refunds received in Q2 would be directed toward customer experience and pricing investments in the second half of the year.
