Walmart on Thursday reported fiscal second-quarter sales that topped Wall Street expectations and lifted its outlook for the year, as the retail giant saw another quarter of robust e-commerce growth and received a boost from tariff refunds.
“Our business is strong,” CFO John David Rainey told CNBC. “We feel really good about the progress we’re making.”
Revenue rose 5.9% in the quarter ended July 31, reaching $187.94 billion, up from $177.40 billion a year earlier. E-commerce sales jumped 23% globally, while U.S. comparable sales grew 2.6% — a figure that came in below the 3.5% increase analysts had expected, according to FactSet. A 0.8% headwind in the health and wellness business, driven by price caps on certain drugs, partially offset that growth.
Raised guidance
Walmart now expects net sales to increase between 4% and 5% for the full fiscal year, up from its prior outlook of 3.5% to 4.5% growth. The company also raised its adjusted earnings guidance to a range of $2.80 to $2.87 per share, compared with the previous forecast of $2.75 to $2.85 per share.
For the fiscal third quarter, Walmart said it expects net sales to rise between 3% and 3.75%, with adjusted earnings per share of 62 cents to 64 cents.
Tariff refunds and price cuts
Rainey said Walmart is eligible to receive roughly $2.9 billion in tariff refunds, of which it has yet to collect less than $100 million. The company plans to use those funds to lower prices for consumers, with the impact expected to show up in the third quarter.
Walmart also faces just over $2 billion in “incremental cost headwinds related to higher fuel prices this year,” Rainey added.
The retailer’s push to cut prices comes as shoppers remain under pressure from elevated fuel and food costs. Rainey said Walmart continues to see consumers stretched thin, especially with higher gas prices, and is lowering prices across categories including beef.
“But consumers are still spending, and real wage growth is keeping pace, and so they’ve been very resilient in this environment,” Rainey told CNBC. “But all that said, we would love to be able to bring prices down more and see less pressure on their wallets.”
Quarterly details
Walmart reported net income of $6.37 billion, or 80 cents per share, compared with $7.03 billion, or 88 cents per share, in the year-ago period. Adjusted earnings per share came in at 81 cents, excluding a loss on investments and including a benefit from a tax matter. The gross profit rate grew to 25.4%, helped by the tariff refund benefit.
Walmart’s membership fee revenue jumped 17% companywide, with Walmart+ net adds hitting a record for a second quarter. Sam’s Club U.S. posted net sales of $25.7 billion, up 8.8% year over year, with membership fees climbing 6%. Global advertising revenue rose 38%.
In the U.S., net sales totaled $125.2 billion, up from $120.9 billion a year earlier. Internationally, net sales reached $35.2 billion, compared with $31.2 billion last year. Global inventory was up 6.7% for the quarter.
Rainey said a significant portion of that inventory involved more expensive, elevated brands, as Walmart saw its biggest market share gains come from higher-income consumers.
Grocery sales grew at a mid-single-digit percentage rate, while health and wellness saw a low single-digit decline. General merchandise revenue was up slightly, driven by strength in toys, fashion, furniture, and private label.
Shares of Walmart fell roughly 5% in premarket trading Thursday.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/20/walmart-wmt-q2-2027-earnings.html
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