Walmart stock fell roughly 7% after the retailer reported a mixed fiscal second quarter. Revenue exceeded Wall Street expectations, e-commerce expanded rapidly and management raised its annual forecast, but US comparable-sales growth slowed to its weakest pace since 2020.
The results matter beyond shareholders because Walmart’s grocery, pharmacy and general-merchandise businesses provide a broad view of American household spending. Consumers are still shopping, but higher food and fuel costs are keeping many focused on essential purchases.
Walmart’s second-quarter numbers
Total revenue increased 5.9% to $187.94 billion from $177.40 billion a year earlier, beating the $186.77 billion expected by analysts. Walmart US contributed $125.2 billion, international operations generated $35.2 billion and Sam’s Club US recorded $25.7 billion.
Net income declined to $6.37 billion, or 80 cents per share, from $7.03 billion, or 88 cents per share. Adjusted earnings were 81 cents per share after excluding an investment loss and including a tax-related benefit. The gross-profit rate improved to 25.4%, partly supported by tariff refunds.
US comparable sales excluding fuel increased only 2.6%, below forecasts of approximately 3.5% to 3.8% and down from 4.1% in the previous quarter. Investors can compare that slowdown with Walmart’s previous earnings and fiscal 2027 outlook, when comparable sales showed stronger momentum.
Drug prices reduced reported sales
New pricing rules affecting certain Medicare prescription medicines created a significant drag on Walmart US comparable sales. Without the health and wellness pressure, comparable-sales growth would have reached approximately 3.4%.
Prescription volumes continued growing, but lower prices—particularly for some GLP-1 medicines—more than offset that increase. The decline therefore reflected reduced revenue per prescription rather than necessarily weaker demand for treatment.
Digital businesses remained strong
Global e-commerce sales jumped 23%, including a 24% increase in the United States. Store-fulfilled delivery grew 40%, while marketplace net sales increased by more than 50%.
Global advertising revenue climbed 38%, with Walmart Connect in the US rising 43% when excluding Vizio. Companywide membership-fee revenue increased 17%, while Sam’s Club US sales advanced 8.8% and its e-commerce business grew 26%.
These operations are becoming increasingly important because advertising, memberships and marketplace services can generate higher-margin income alongside traditional retail sales.
The decline also followed a period of historic valuation growth, making the latest results particularly relevant to investors assessing whether the momentum behind Walmart’s $1 trillion market-cap milestone can continue.
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Groceries and wealthier shoppers supported demand
Grocery sales grew at a mid-single-digit rate, while general merchandise increased slightly through strength in toys, fashion, furniture and private-label products. Personal care, beauty and pet supplies also performed well.
Walmart continued gaining market share across income groups, with higher-income households making the largest contribution. Global inventory rose 6.7%, partly because the retailer added more elevated and higher-priced products for those customers.
Tariff refunds could fund lower prices
Walmart received nearly $2.9 billion in tariff refunds and prioritised investing the benefit in lower prices. The company completed more than 11,000 price rollbacks in the US during the quarter, including reductions across groceries and summer products.
Those refunds helped adjusted operating income grow about 17% in constant currency. Walmart said underlying operating-income growth, excluding the refund benefit, remained near the upper end of its previous 7%–10% guidance.
Walmart’s reported figures, operating details and updated projections are available on the company’s official fiscal 2027 second-quarter earnings page.
The refund benefit is offset by another challenge: Walmart expects slightly more than $2 billion in additional fuel-related costs this year. Higher fuel prices raise transportation expenses while reducing the money customers have available for discretionary purchases.
Walmart raises its annual outlook
Walmart now expects full-year net-sales growth of 4% to 5%, up from 3.5% to 4.5%. Adjusted earnings are projected at $2.80 to $2.87 per share, compared with the previous $2.75 to $2.85 range.
For the third quarter, management expects net-sales growth of 3% to 3.75% and adjusted earnings of 62 to 64 cents per share.
The next report will show whether lower prices improve customer traffic and whether e-commerce can sustain growth above 20%. Investors will also watch pharmacy pressure, fuel costs and the ability of advertising and memberships to offset slower comparable-sales growth.
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