Earnings2 min read
Walmart (WMT): Q2 FY2027 Earnings Review
In brief
Walmart reported fiscal Q2 2027 results on Aug 20 that beat estimates; WMT is an index_constituent and qualifies for P1.
Walmart reported Q2 fiscal 2027 results (May–July 2026) on August 20, beating estimates on both lines and raising full-year guidance. Adjusted earnings came in at $0.81 per share against the $0.74 consensus. Revenue rose roughly 11% year-over-year to $187.94 billion, beating the $186.64 billion consensus. Walmart lifted its FY27 outlook for sales growth to 4%–5% and adjusted EPS to $2.80–$2.87. Shares still closed at $103.84, down 9.15%, on roughly 83.5 million shares traded.
What's behind Walmart's results
1. Comps and Constant-Currency Sales Beat the Top End of Guidance
Walmart U.S. posted comparable sales of +2.6%, while Sam's Club U.S. comps reached +4.4%. International sales rose 7.9%, with China and India leading. Total constant-currency sales grew 5%, "the top end of our guidance," per CEO John Furner on the earnings call.
2. Digital and Platform Engines Keep Accelerating
Global e-commerce grew 23%, with Walmart U.S. e-commerce logging 10 consecutive quarters above 20%. U.S. Marketplace rose 52%, advertising was up 38%, and membership fee revenue hit an all-time high on 17% growth. Walmart Connect now integrates the recent Vibe acquisition alongside VIZIO. The 10-quarter e-commerce streak is a meaningful sign that the digital build-out is becoming durable, not just a pandemic-era blip.
3. Profit Engine Powered by Scale, Partly by Tariff Refunds
Adjusted operating income rose 17.4% in constant currency, ahead of revenue growth. Walmart credited tariff refunds for much of the upside. It is reinvesting much of that into lower prices, executing more than 11,000 "rollbacks" this quarter, up from 7,200 at the end of Q1. Management warned Q3 operating income growth moderates to 2%–4% as those investments flow through. It also flagged more than $2 billion in added fuel costs for the year.
Historical Context
Walmart has now topped expectations for two straight quarters after Q1 FY27 delivered $0.66 adjusted EPS on $177.75 billion in revenue. Year-ago Q2 FY26 saw a $0.68 adjusted print on $169.34 billion in sales. Q2 FY27 adjusted EPS of $0.81 is up about 19% year-over-year, with revenue up roughly 11%.