Q2 FY2027 results
| Metric | Result | Change |
|---|---|---|
| Enterprise net sales growth | 5% | Constant currency |
| Global e-commerce sales growth | 23% | Not stated |
| Adjusted EPS increase | Over 19% | Not stated |
| Walmart U.S. comp sales | 2.6% | Not stated |
| Sam's Club U.S. comp sales | 4.4% | Not stated |
Guidance and outlook
- Full year sales growth: 4% to 5%
- Full year operating income growth: 7% to 8.5%
- Full year EPS: $2.80 to $2.87
- Q3 sales growth: 3% to 3.75%
- Q3 operating income growth: 2% to 4%
- Q3 EPS: $0.62 to $0.64
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year sales and EPS guidance while highlighting durable growth in e-commerce and advertising despite a softer consumer environment. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Tariff refunds and price investment
Asked: How are tariff refunds being used and will they be permanent?
Answer: Management invested in price leadership, particularly in grocery and general merchandise, and will manage these investments carefully to drive durable share gains.
Consumer environment
Asked: Is the lower-income consumer facing more pressure?
Answer: Yes, higher fuel prices have created incremental pressure, leading to trade-offs, which is why Walmart is leaning into lower prices.
Incremental margins
Asked: Can incremental margins in the digital business continue to improve?
Answer: Yes, advertising growth outpacing e-commerce growth and the acquisition of Vibe provide confidence in potential margin expansion.
Health and wellness
Asked: What is the outlook for health and wellness given the fair pricing headwinds?
Answer: Despite the 125 basis point headwind, management remains positive on the category as pharmacy customers spend 3x more than the average customer.
What to watch before the next call
- The impact of fuel costs on consumer spending and operating expenses.
- The effectiveness of price investments in driving sustained unit growth and market share.
- The cadence of sales growth in Q3 and Q4 related to the timing of Flipkart's big billion days.
