Walmart Inc.WMT
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Walmart beat Q2 estimates with adjusted EPS of 81 cents, up 19.1%, and improved gross margin.
Impact on stocks 3
Consumer Staples
Walmart Q2 Earnings Beat as Digital Growth Outpaces Sales
Earnings
Walmart Inc. reported second-quarter fiscal 2027 adjusted earnings of 81 cents per share, up 19.1% and ahead of the Zacks Consensus Estimate of 73 cents, as digital, advertising and membership businesses expanded faster than overall sales. Global e-commerce sales rose 23% and U.S. marketplace sales jumped 52%, while global advertising grew 38% and membership fee revenues increased 17%. Adjusted operating income climbed 17.4% at constant currency to $9.25 billion against 5% constant-currency net sales growth, and the consolidated gross profit rate improved 96 basis points to 25.4%, helped by tariff refunds at Walmart U.S. and a favorable advertising mix. Costs and cash flow remain a pressure point: adjusted operating expenses rose 40 basis points to 21.4% of net sales, management expects more than $2 billion of incremental fuel-related costs in fiscal 2027, and first-half free cash flow fell $1.4 billion to $5.5 billion as capital expenditures rose to $14.2 billion from $11.4 billion. The stock trades at 34.7X forward 12-month earnings, above the sub-industry's 31.7X and its own five-year median of 25.0X, and carries a Zacks Rank #3 (Hold).
Walmart Inc.Walmart beat Q2 estimates with adjusted EPS of 81 cents, up 19.1%, and improved gross margin.
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