Walmart Stock Earnings Reports

Walmart reported a strong Q2 with consolidated sales up 5.6% (constant currency) and global e-commerce up 25%. All segments exceeded 20% e-commerce growth, led by Walmart US and Sam's Club US (both ~26%). International sales grew ~10.5% (China, Walmex, Flipkart strength). Sam's Club US comp ex-fuel rose ~5.9% driven by unit growth. Marketplace, advertising (Walmart Connect up ~31% ex‑VIZIO; global advertising +46% including VIZIO), and membership income (+15% globally) continue to reshape margins and provide higher-margin revenue streams. Management raised full-year sales guidance (to 3.75%–4.75% constant currency) and kept full-year adjusted operating income guidance unchanged (3.5%–5.5% constant currency), while raising EPS guidance due to favorable currency year-to-date. Adjusted operating income grew only modestly (+0.4% CC) as the quarter absorbed an incremental ~$450M accrual for general liability and workers’ comp claims (Q1+Q2 incremental ~$730M expected to be absorbed within full-year guidance). Inventory is in good shape entering the back half (global inventory +3.8%; Walmart US +2.2%), with clean sell‑throughs from back-to-school. Management emphasized discretionary use of rollbacks (about 7,400 active) to preserve price leadership amid tariff-driven cost pressures and said customer behavior has been broadly consistent, with more sensitivity in middle/lower-income cohorts. Strategic priorities highlighted: accelerating e-commerce speed (store‑fulfilled fast delivery, expanding coverage), growing advertising and membership, launching the OnePay co‑brand cash rewards card (3% back; 5% for Walmart Plus), continuing supply chain and store automation, and aggressively scaling AI (new hires and “super agents” such as Sparky). Risks remain around tariffs/import cost pass-through, claims cost inflation, and trade policy uncertainty, but management reiterated confidence in growing operating income faster than sales over the multiyear horizon.