Walmart Beats Q2 Estimates and Raises Outlook

Walmart delivered a fiscal second-quarter earnings beat on 14 September 2026, supported by strong digital expansion and an improved full-year forecast. Revenue rose 5.9% year over year to $187.9 billion, topping the Zacks Consensus Estimate of $186.3 billion. Adjusted earnings increased 19.1% to 81 cents per share, beating expectations of 73 cents.

Constant-currency sales advanced 5.1%, and adjusted operating income rose 17.4% at constant currency to $9.25 billion. The gross profit rate expanded 96 basis points to 25.4%, aided by tariff refunds and favorable mix. Global e-commerce sales surged 23%, global advertising jumped 38%, and membership fee revenue increased 17%. By comparison, Target posted 8.7% digital comparable sales growth in its latest quarter, while Costco reported 17.9% growth in digitally enabled comparable sales for August.

Following the performance, Walmart raised its fiscal 2027 constant-currency net sales growth guidance to 4% to 5%, up from 3.5% to 4.5%. It also lifted its adjusted operating income growth projection to 7% to 8.5% and adjusted earnings guidance to $2.80 to $2.87 per share. For the third quarter, the company projects constant-currency net sales growth of 3% to 3.75%, adjusted operating income growth of 2% to 4%, and adjusted earnings per share between 62 and 64 cents.

Cost pressures and heavy investments remain key watchpoints. First-half capital expenditures increased to $14.2 billion from $11.4 billion, which reduced free cash flow by $1.4 billion to $5.5 billion despite operating cash flow rising $1.4 billion to $19.7 billion. Management lifted fiscal 2027 capital spending expectations to about 4% of net sales and anticipates more than $2 billion in incremental fuel-related expenses, while Vibe acquisition and integration costs will likely trim operating income growth by roughly 20 basis points.