The raised FY27 guidance and strong Q2 beat (especially adjusted EPS +19% YoY) should drive positive momentum. However, Q3 guidance implies a deceleration (adj. OI growth 2-4% cc vs Q2's 17.4%), partly due to reinvesting tariff refunds and Flipkart's Big Billion Days timing shift. Watch for the Q3 print to confirm the underlying growth trajectory, as management suggests evaluating Q2 and Q3 together.
Price Chart
Executive Summary
Walmart reported strong Q2 FY27 results with revenue of $187.9B (+5.9% YoY) and adjusted EPS of $0.81, beating the Street consensus of $0.73 by ~11%. The company raised its full-year FY27 guidance, now expecting net sales growth of 4.0%-5.0% (cc) and adjusted operating income growth of 7.0%-8.5% (cc), with adjusted EPS of $2.80-$2.87. The beat was driven by tariff refund benefits, strong eCommerce growth (+23% globally), and advertising revenue (+38%), though GAAP EPS declined 9.1% due to mark-to-market losses on equity investments. The raised guidance and strong operational momentum outweigh the GAAP noise, making this a clear positive for the stock.
Key Financial Metrics
Key Facts
- Revenue of $187.9B, up 5.9% YoY (5.1% cc), beating consensus of $186.82B
- Adjusted EPS of $0.81, up 19.1% YoY, beating Street consensus of $0.73 by ~11%
- GAAP EPS of $0.80, down 9.1% YoY due to $0.12/share net loss on equity investments
- Operating income of $9.4B, up 28.8% (17.4% adjusted cc), driven by tariff refunds and business mix
- Global eCommerce sales grew 23%; advertising business up 38%
- Raised FY27 guidance: net sales growth 4.0%-5.0% (cc), adj. operating income growth 7.0%-8.5% (cc), adj. EPS $2.80-$2.87 (from $2.75-$2.85)
- Q3 FY27 guidance: net sales growth 3.0%-3.75% (cc), adj. EPS $0.62-$0.64
- Repurchased $3.0B in shares during Q2 at avg price $117.61; $25.1B remaining on authorization
- Free cash flow YTD of $5.5B, down from $6.9B due to $2.8B increase in capex
- Gross profit rate expanded 96 bps to 25.4%, led by Walmart U.S. tariff refund benefits
Financial Impact
Adjusted EPS beat consensus by ~$0.08 (11%), with FY27 guidance raised by $0.05-$0.02 at the midpoint. Revenue beat by ~$1.1B. Operating income growth of 28.8% YoY.
Risk Factors
- Q3 guidance implies significant deceleration in operating income growth (2-4% cc vs 17.4% in Q2), partly due to reinvesting tariff refunds into price investments
- GAAP EPS declined 9.1% YoY due to mark-to-market losses on equity investments (Symbotic), which could continue to be volatile
- Walmart U.S. comp sales slowed to 2.6% from 4.1% last quarter, with a 125 bps headwind from pharmacy deflation (maximum fair price regulation)
- Operating expense deleverage of 72 bps in Walmart U.S. due to higher claims, depreciation, and healthcare costs
- Free cash flow declining YTD ($5.5B vs $6.9B) due to elevated capex for omnichannel investments
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000104169-26-000145 |
| Document: earningspresentationfy27.htm | 0000104169-26-000145 |
| Document: wmt-20260820.htm | 0000104169-26-000145 |
| Document: 0000104169-26-000145-index-headers.html | 0000104169-26-000145 |
| Document: 0000104169-26-000145-index.html | 0000104169-26-000145 |
| Document: 0000104169-26-000145.txt | 0000104169-26-000145 |
| 8-K Data (Synthetic) | 0000104169-26-000145 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 29d ago | Insider Cluster | $108.42 $107.15 | ▼ −1.17% | ▼ −0.02% | $104.21 (−3.88%) |
Aug 27, 2026 5w ago | Insider Cluster | $102.63 $106.09 | ▲ +3.37% | ▲ +4.14% | $104.21 (+1.54%) |
Aug 20, 2026 6w ago | 8-K | $103.84 $102.63 | ▼ −1.17% | ▼ −2.28% | $104.21 (+0.36%) |
Jul 1, 2026 13w ago | Court Ruling | $108.82 $111.54 | ▲ +2.50% | ▲ +2.24% | $104.21 (−4.24%) |
Jun 30, 2026 13w ago | Court Ruling | $113.26 $110.65 | ▼ −2.30% | ▼ −2.91% | $104.21 (−7.99%) |
Jun 24, 2026 14w ago | Court Ruling | $119.00 $108.82 | ▼ −8.55% | ▼ −10.26% | $104.21 (−12.43%) |
Jun 17, 2026 15w ago | Insider Cluster | $117.18 $115.78 | ▼ −1.19% | ▲ +0.47% | $104.21 (−11.07%) |
Jun 17, 2026 15w ago | Court Ruling | $118.13 $115.78 | ▼ −1.99% | ▼ −1.09% | $104.21 (−11.78%) |
Jun 9, 2026 16w ago | Court Ruling | $118.88 $121.03 | ▲ +1.81% | ▲ +0.01% | $104.21 (−12.34%) |
Jun 5, 2026 17w ago | Court Ruling | $118.88 $121.04 | ▲ +1.82% | ▲ +1.25% | $104.21 (−12.34%) |
US Market Status
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