Walmart beats Q2 earnings, raises full-year outlook on eCommerce strength
Walmart beat Wall Street expectations on its second-quarter earnings and raised its full-year outlook, driven by strong eCommerce growth and tariff refunds, though the stock fell 9% as investors found the sales guidance disappointing. The retailer reported adjusted earnings per share of 81 cents, topping the 74 cents expected, and revenue of $187.94 billion versus $186.77 billion forecast, according to CNBC.
Global eCommerce sales jumped 23% in the quarter, with Walmart U.S. eCommerce growing 24%, according to the company’s earnings call highlights. That strength helped offset a softer comparable sales result: U.S. same-store sales rose 2.6%, below Wall Street’s expectation of 3.5% growth. The health and wellness segment declined slightly due to new drug price caps, while grocery and other categories posted solid gains.
The company lifted its full-year adjusted earnings per share guidance to $2.80 to $2.87, up from a prior range of $2.75 to $2.85, and raised net sales growth guidance to 4% to 5% from 3.5% to 4.5%. CFO John David Rainey told CNBC the retailer was eligible to receive roughly $2.9 billion in tariff refunds and plans to use those funds to lower prices for consumers, with the impact visible in the third quarter.
Beyond core retail, Walmart’s higher-margin businesses boosted profitability. Global advertising revenue climbed 38%, and membership fee revenue jumped 17%, with Walmart+ net adds hitting a second-quarter high, according to CNBC. The company also reported gross profit rate growth to 25.4%, helped by the tariff refund benefit. These ancillary revenue streams have become critical to margin expansion as the retailer competes with Amazon and other rivals.
The stock’s 9% decline despite the earnings beat reflected investor disappointment with the sales guidance range. Rainey acknowledged that consumers remain “stretched thin” with higher fuel and food costs, though he noted that real wage growth and spending resilience have kept the business solid. The company is lowering prices across categories, including beef, to support affordability.
Walmart’s results align with a broader trend among major retailers raising guidance after strong first halves. Target raised its full-year outlook after Q2 sales beat expectations, while Home Depot beat Q2 earnings estimates and reaffirmed full-year guidance, showing that tariff refunds and digital growth are lifting the retail sector. Walmart’s eCommerce profitability milestone—achieved in prior quarters—continues to pay dividends, with delivery density and marketplace sales driving operating leverage.
Sources
- CNBC — Walmart Q2 2026 earnings beat, full-year outlook raised, CFO commentary on tariff refunds and pricing strategy
- MarketBeat — Q2 earnings call highlights on eCommerce growth (23% global, 24% U.S.) and membership revenue
- Zacks Investment Research — Walmart Q2 earnings top estimates, fiscal 2027 outlook lifted, eCommerce and advertising growth
- Axios — Walmart posted worst U.S. same-store sales growth in six years, company raised full-year outlook
- Investors.com — Q2 adjusted EPS of 81 cents (up 19% year-over-year), revenue growth, gross profit rate expansion
