BENTONVILLE, Ark. — Walmart raised its full-year sales and profit outlook Thursday after reporting solid second-quarter revenue growth, even as U.S. comparable sales posted their smallest quarterly increase in more than six years.
The retailer said revenue rose 5.9% to $187.9 billion in its fiscal second quarter, or 5.1% in constant currency. Walmart U.S. comparable sales increased 2.6%, driven by transaction growth, but slowed from the 4.1% gain recorded in the first quarter.
The 2.6% increase represented Walmart’s smallest quarterly U.S. comparable-sales gain in more than six years, reflecting a consumer environment in which shoppers remain cautious about spending.
At the same time, Walmart continued to generate strong growth from businesses beyond its traditional store operations, including e-commerce, advertising and membership.
Global e-commerce sales increased 23%, led by store-fulfilled pickup and delivery and the company’s marketplace business. Walmart’s global advertising business grew 38%, with Walmart U.S. advertising also up 38%. Membership fee revenue increased 17% globally.
“Our team delivered another good quarter, and we continue to make steady progress on the long-term value drivers of our business,” Walmart president and CEO John Furner said in a statement. “Our multi-year growth in eCommerce is evidence that customers are choosing Walmart because we deliver price, speed, and convenience across a broad assortment. At Walmart, they can have it all.”
Operating income increased $2.1 billion, or 28.8%, while adjusted operating income rose 17.4% in constant currency. Results benefited from tariff refunds received during the quarter, which were partially offset by Walmart’s investments in price.
The company said that excluding the net impact of the tariff refunds and related price investments, underlying operating income growth came in at the top end of its guidance. Walmart indicated it plans to continue directing remaining tariff refunds toward price investments, underscoring its focus on maintaining its value proposition as consumers remain price conscious.
Gross profit rate increased 96 basis points, led by Walmart U.S., with the improvement primarily reflecting the tariff refund impact.
Adjusted earnings per share totaled $0.81. The adjusted figure excludes a net-of-tax loss of $0.12 per share on equity and other investments and a net benefit of $0.11 per share related to a tax matter.
Despite the moderation in U.S. comparable-sales growth, Walmart raised its outlook for the fiscal year. The retailer now expects fiscal 2027 net sales to increase 4% to 5% and adjusted operating income to rise 7% to 8.5%, both in constant currency. Adjusted earnings per share are projected at $2.80 to $2.87.
For the third quarter, Walmart expects net sales growth of 3% to 3.75% and adjusted operating income growth of 2% to 4%, both in constant currency. Adjusted EPS is forecast at $0.62 to $0.64.
The company’s U.S. comparable-sales performance included an 80-basis-point headwind from health and wellness.
Walmart ended the quarter with global inventory up 6.7%, or 6% in constant currency, which the company attributed to strategic initiatives and inflation. Return on assets stood at 8%, while return on investment was 15.4%.
The results illustrate the changing composition of Walmart’s growth. While gains in its core U.S. retail business have moderated, rapidly expanding e-commerce, advertising and membership operations are providing additional sources of revenue and profit growth as the retailer continues to broaden its business beyond traditional merchandise sales.
