The quarter beat on earnings, but not cleanly on sales. Published estimates were roughly $188.8 billion of revenue and $0.74 of adjusted EPS; Walmart delivered $187.9 billion of revenue and $0.81 of adjusted EPS. The EPS upside was helped by strong operating performance and a lower effective tax rate, while reported EPS was affected by investment losses and a tax matter.
| Metric | Q2 FY27 | Prior year / expectation | Read |
|---|---|---|---|
| Total revenues | $187.9B | $177.4B prior year; ~$188.8B consensus | Slight revenue miss |
| Adjusted EPS | $0.81 | $0.68 prior year; ~$0.74 consensus | Clear beat |
| Operating income | $9.4B | $7.3B prior year; +28.8% reported | Strong growth, partly helped by tariff refunds |
| Walmart U.S. comp sales ex-fuel | 2.6% | 4.6% prior year | Deceleration |
| Global eCommerce sales | +23% | — | Major growth engine |
| FY27 net sales guidance | +4.0% to +5.0% cc | +3.5% to +4.5% previously | Raised |
| FY27 adjusted EPS guidance | $2.80–$2.87 | $2.75–$2.85 previously | Raised |
| FY27 adjusted operating income guidance | +7.0% to +8.5% cc | +6.0% to +8.0% previously | Raised |
The more important surprise was the full-year outlook increase. Walmart raised its FY27 constant-currency sales range by 50 basis points at both ends, lifted adjusted operating-income growth to 7.0%-8.5% from 6.0%-8.0%, and increased adjusted EPS guidance to $2.80-$2.87 from $2.75-$2.85. 〔0〕 That is a genuine change to the earnings baseline, not merely a confirmation of the existing plan.
Underlying demand was mixed beneath the strong headline growth. Walmart U.S. comparable sales rose 2.6% excluding fuel, down from 4.6% a year earlier, with average ticket growth slowing to 1.1% from 3.1%; transactions remained at 1.5%. Sam’s Club was healthier, with 4.4% comp growth excluding fuel and transactions up 7.0%, although average ticket fell 2.5%. 〔1〕 The filing also points to a 125-basis-point pharmacy-related headwind in U.S. comps, so the slowdown was not entirely broad-based weakness.
Profit growth was unusually helped by tariff refunds, making the next quarter look less impressive. Adjusted operating income rose 17.4% in constant currency, but management said tariff refunds boosted Q2 and that remaining refunds will be redirected into prices and customer experience later in the year. Q3 guidance therefore calls for only 2.0%-4.0% adjusted operating-income growth and $0.62-$0.64 of adjusted EPS, even with the full-year outlook raised.
Net read: a meaningful positive surprise, led by guidance and EPS rather than sales momentum. The revenue result was slightly below published expectations, but the earnings beat, stronger-than-expected full-year outlook, 23% global eCommerce growth, and margin expansion outweigh the softer U.S. comp trend. The key qualification is that Q2’s profit strength included tariff-refund benefits, while Walmart is choosing to reinvest those benefits into lower prices and customer experience in Q3.
Read the original 8-K on SEC EDGAR ↗