Walmart Inc. reported a 5.9% increase in Q2 revenue to $187.9 billion, with global e-commerce sales up 23%, advertising revenue up 38%, and membership revenue up 17%, highlighting its expansion beyond traditional retail. The company's adjusted operating income rose 17.4% in constant currency, and gross margin expanded 96 basis points, while operating cash flow reached $19.7 billion and free cash flow fell to $5.5 billion. Management raised its FY 2027 outlook to 4%-5% sales growth and 7%-8.5% adjusted operating income growth. Bernstein analyst Zhihan Ma maintained a "Buy" rating with a $142 price objective, noting the quarter ended at the high end of guidance and that softer US comparable sales were aided by pharmacy factors. Bears point to Q3 operating income growth guidance of only 2%-4% due to tariff refunds being redirected to lower prices, and inventory rose 6.7% year over year. Short interest is low for both Walmart and Amazon, and hedge fund ownership of Walmart increased from 99 funds in Q1 2026 to 111 in Q2.
Walmart Inc.Q2 revenue and operating income beat, raised FY outlook, and analyst maintained Buy.
Amazon.com Inc