Walmart (WMT) Q2 2027 earnings summary

Executive summary

• Revenue for Q2 FY27 grew 5.9% year-over-year to $187.9 billion, with net sales up 5% in constant currency, driven by robust e-commerce, membership, and international growth.

• Adjusted operating income in constant currency rose 17.4% to $9.2 billion, supported by tariff refunds, higher gross margins, and global membership growth.

• Adjusted EPS increased 19.1% year-over-year to $0.81, excluding investment losses and tax benefits.

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

• Raised full-year sales and operating income guidance, reflecting confidence in durable, long-term growth.

Financial highlights

• Net sales: $186.1 billion, up 5.9% year-over-year; enterprise net sales up 5% in constant currency.

• Adjusted operating income grew 17.4% in constant currency, including a 750 bps benefit from tariff refunds.

• Adjusted EPS increased over 19% year-over-year to $0.81.

• Gross profit rate improved by 96 bps to 25.4%, led by tariff refunds and favorable business mix.

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

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%.

• Q3 FY27 net sales expected to grow 3.0%–3.75%; Q3 operating income growth at 2.0%–4.0%.

• Adjusted EPS guidance: $0.62–$0.64 for Q3; $2.80–$2.87 for FY27.

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

• Capital expenditures projected at approximately 4% of annual net sales for FY27.