Walmart (WMT) investor relations material

Executive summary

• Revenue grew 5.9% year-over-year to $187.9 billion, with eCommerce sales up 23% globally and strong performance across all segments.

• Adjusted operating income increased 17.4% in constant currency to $9.2 billion, while reported operating income rose 28.8%, driven by tariff refunds and improved business mix.

• Membership fee revenue reached an all-time high, up 17% globally, with double-digit growth in Walmart+ and Sam's Club.

• Gross profit rate improved by 96 bps, primarily due to $2.9 billion in tariff refunds.

• Adjusted EPS increased 19.1% year-over-year to $0.81, while net income declined to $6.5 billion due to lower investment gains and higher expenses.

Financial highlights

• Net sales grew 5.9% to $186.1 billion for the quarter, with eCommerce net sales up 23%.

• Adjusted operating income up 17.4% (constant currency); reported operating income up 28.8% to $9.4 billion.

• Adjusted EPS was $0.81; GAAP EPS was $0.80, reflecting investment losses and tax adjustments.

• Free cash flow for the six months was $5.5 billion, down $1.4 billion year-over-year due to higher capital expenditures.

• Gross profit margin: 25.4% (up 96 bps year-over-year); ROI: 15.4%; ROA: 8.0%.

Outlook and guidance

• FY27 net sales growth guidance raised to 4.0%–5.0%, with adjusted operating income expected to increase 7.0%–8.5%.

• Adjusted EPS guidance for FY27 is $2.80–$2.87; Q3 EPS expected at $0.62–$0.64.

• Q3 FY27 net sales expected to grow 3.0%–3.75%, with adjusted operating income to grow 2.0%–4.0%.

• Capital expenditures projected at approximately 4.0% of net sales for FY27.

• Guidance incorporates $2B+ incremental fuel costs and a 125 bps headwind from Maximum Fair Price regulation.