Walmart reports mixed Q2 results, raises full-year outlook

Investing.com -- Walmart Inc. reported mixed second-quarter results on Thursday, with revenue exceeding expectations but earnings falling short of analyst estimates. The retail giant also raised its full-year sales and earnings outlook, signaling confidence in its growth trajectory despite near-term challenges.

The company posted adjusted earnings per share of $0.68 for the second quarter, missing the analyst consensus of $0.74. Revenue came in at $177.4 billion, surpassing the $174.4 billion analysts had expected and representing a 4.8% increase YoY, or 5.6% in constant currency. Walmart (NYSE:WMT) shares dipped 1% following the announcement.

Global eCommerce sales were a bright spot, surging 25% during the quarter, driven by store-fulfilled pickup and delivery services as well as marketplace growth. The company’s advertising business grew 46%, including the recently acquired VIZIO, with Walmart Connect in the U.S. up 31%.

"Our strategic investments in eCommerce and digital capabilities continue to pay off as customers embrace our omnichannel shopping experience," said Doug McMillon, President and CEO of Walmart. "While we faced some headwinds this quarter, our underlying business remains strong."

Operating income decreased 8.2% due to discrete legal and restructuring costs. On an adjusted basis, operating income increased 0.4% in constant currency, though growth was affected by approximately 560 basis points from higher self-insured general liability claims expenses.

Looking ahead, Walmart raised its full-year outlook, now expecting net sales growth of 3.75% to 4.75% in constant currency, up from its previous guidance of 3% to 4%. The company also raised its fiscal 2026 EPS forecast to $2.52-$2.62, though the midpoint of $2.57 remains below the analyst consensus of $2.64.

For the third quarter, Walmart expects EPS of $0.58-$0.60, slightly above the analyst consensus of $0.57.