Walmart Q2 Fiscal 2027 Results Summary

Date: August 20, 2026

Key Highlights

• Walmart's revenue increased by 5.9% year-over-year to $187.9 billion.
• Adjusted earnings per share (EPS) were reported at $0.81, exceeding expectations of $0.74.
• Despite strong results, Walmart shares fell approximately 6% in premarket trading.
• The company raised its full-year sales and EPS guidance.

Financial Performance

Walmart's second quarter results indicate a robust U.S. consumer environment, with comparable sales in the U.S. rising by 2.6%. The growth was broad-based, not solely reliant on traditional retail, as e-commerce and advertising segments also showed significant growth.

Revenue and Earnings

Walmart's revenue of $187.9 billion surpassed expectations of $186.75–186.8 billion. The adjusted EPS of $0.81 beat the consensus by $0.07. U.S. comparable sales, excluding fuel, increased by 2.6%, while global e-commerce sales grew by 23% and U.S. e-commerce by 24%. The advertising business also expanded by 38%.

Guidance Updates

The company raised its full-year net sales growth guidance to 4–5% from 3.5–4.5%, and adjusted EPS guidance was lifted to $2.80–2.87 from $2.75–2.85. For Q3, Walmart anticipates sales growth of 3.0–3.75% and adjusted EPS of $0.62–0.64.

Market Reaction

Despite the positive financial results, Walmart's stock price declined due to a cautious outlook for Q3 and high market expectations. The market appears to be valuing Walmart at a premium, with shares trading at approximately $114.28, reflecting a forward P/E ratio of 39.6x.

Profitability Insights

Walmart's gross margin increased by 96 basis points, primarily due to tariff-related refunds. However, reported net income fell by 8.7% year-over-year to $6.5 billion, and diluted EPS declined by 9.1% to $0.88. This indicates a strong operational performance but highlights some underlying challenges.

Valuation and Future Outlook

Walmart's current valuation suggests that the market is paying a high price for quality, with a market capitalization of around $917 billion. The company’s ability to maintain margins and generate free cash flow will be critical moving forward. The focus will be on leveraging its vast customer base to enhance profitability through higher-margin services like advertising and e-commerce.

Conclusion

Walmart's Q2 results affirm the strength of the U.S. consumer and the company's solid fundamentals. However, the market's reaction indicates that high expectations may limit the stock's upside potential in the near term. Investors will need to monitor Walmart's ability to convert sales growth into improved profitability.