Walmart (WMT) Earnings Date & Reports

Key Takeaways

• Walmart reported adjusted earnings per share (EPS) of $0.81, beating the consensus estimate of about $0.74.
• Total revenue reached $187.94 billion, up 5.9% year over year and slightly ahead of analyst expectations.
• U.S. comparable sales (excluding fuel) rose just 2.6%, missing the roughly 3.8% analysts had expected and marking the slowest pace in about six years.
• Higher-margin businesses stood out, with global e-commerce up 23%, advertising up 38%, and marketplace sales up 52%.
• Walmart raised its full-year fiscal 2027 guidance but issued third-quarter EPS guidance below consensus, and shares fell sharply after the report.

Earnings Context and Why It Matters

Walmart's results for the second quarter of fiscal 2027, which ended July 31, 2026, carried outsized significance as a read on U.S. consumer health. As the country's largest retailer, Walmart's traffic and spending trends are widely viewed as a barometer for household budgets, especially amid elevated fuel costs and cautious discretionary spending. Investors were also watching how Walmart balances its traditional store business against fast-growing, higher-margin segments such as e-commerce, advertising, and membership income. A rare miss on U.S. comparable sales introduced fresh questions about the consumer, even as the company's digital and platform businesses continued to scale at a rapid pace.

Reported Results

Walmart reported adjusted EPS of $0.81, above the consensus estimate of approximately $0.74. GAAP (Generally Accepted Accounting Principles) EPS was $0.80, down from $0.88 in the prior-year quarter. Total revenue came in at about $187.94 billion, a 5.9% increase year over year and modestly ahead of the roughly $186.6 billion analysts had projected. Operating income climbed 28.8% to approximately $9.38 billion, while adjusted operating income rose 17.4% in constant currency.

The headline beat masked a notable soft spot. Walmart U.S. comparable sales excluding fuel grew only 2.6%, well below the 3.8% expected, weighed down by lower pharmacy revenue tied to Maximum Fair Price drug-pricing regulation. Excluding health and wellness, comparable sales would have risen about 3.4%. Meanwhile, global e-commerce sales grew 23%, advertising rose 38%, and U.S. marketplace sales increased 52%. The quarter also included a roughly $2.9 billion tariff refund that lifted operating income growth by about 750 basis points.

Management raised full-year fiscal 2027 guidance, now targeting net sales growth of 4% to 5%, adjusted operating income growth of 7% to 8.5%, and adjusted EPS of $2.80 to $2.87. Third-quarter EPS guidance of $0.62 to $0.64, however, came in below the consensus near $0.68.

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Market Reaction and Investor Sentiment

Despite the earnings and revenue beats, Walmart shares declined sharply following the August 20, 2026 report, with premarket losses of roughly 6% to 9%. The selloff reflected investor focus on the U.S. comparable-sales miss and softer-than-expected third-quarter EPS guidance. The tariff refund, which boosted operating income but is largely a one-time item, also drew scrutiny, as analysts looked past it to underlying profitability. Broader concerns about consumer pressure from high fuel prices added to the cautious tone, overshadowing the strength in e-commerce, advertising, and membership growth.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should monitor how Walmart's price investments and rollbacks translate into market-share gains and unit growth. Management expanded rollbacks to more than 11,000 items during the quarter, betting that lower prices will support durable share gains even if the payoff is not immediate.

The pharmacy-related drag is another key factor. Walmart now expects the Maximum Fair Price regulation to reduce U.S. comparable sales by roughly 125 basis points for the full fiscal year, up from an earlier estimate of 100 basis points. Watching whether core merchandise comparable sales hold in the 3% to 4% range will be essential.

Cost pressures also remain in focus, including a more than $2 billion headwind from higher fuel costs versus original assumptions. On the positive side, the continued scaling of e-commerce, advertising, marketplace, and membership income supports improving profitability over time. Walmart's next earnings report is expected around November 19, 2026, providing the next checkpoint on consumer demand and margin execution.

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