BENTONVILLE, Ark. — Walmart Inc. delivered another quarter of solid sales growth as U.S. shoppers continued to flock to its stores and digital platforms, though unexpected expenses weighed on profits and snapped a three-year streak of quarterly earnings beats.
For the fiscal second quarter ended July 31, Walmart reported revenue of $177.4 billion, up 4.8% year over year and ahead of Wall Street expectations. Comparable sales at Walmart U.S. increased 4.6%, driven by growth in grocery and health and wellness, while Sam’s Club comps rose 5.9%. International sales increased 5.5%, driven by growth in China, Mexico, and India. Global e-commerce surged 25%, with delivery and express delivery highlighted as the fastest-growing digital fulfillment channels. Advertising revenue increased by 46%, driven by growth from Walmart Connect and the integration of VIZIO.
Net income rose 56% to $7 billion, but adjusted earnings per share came in at 68 cents, below analyst forecasts of 73 cents, as higher self-insurance claims, litigation costs, and restructuring charges pressured the result. The $450 million in additional liability expenses accounted for a headwind of 4–5 cents per share, Walmart said.
Despite the profit miss, the company lifted its full-year net sales growth guidance to 3.75% to 4.75%, up from 3% to 4%, and reiterated its outlook for adjusted EPS of $2.52 to $2.62. Executives emphasized that at the midpoint, profit is expected to grow slightly faster than sales.
Analysts said the results demonstrate Walmart’s ability to attract households across various income levels, with notable share gains among higher-income shoppers. Jefferies analyst Corey Tarlowe called the company’s U.S. sales performance evidence of “durable momentum” despite economic uncertainty.
