Walmart delivered a strong quarter, with sales at the top end of guidance and significant operating income growth, despite a competitive price investment strategy funded by tariff refunds. Management raised full-year guidance, citing durable share gains and a robust e-commerce and commerce solutions strategy. Enterprise sales grew 5% in constant currency, with U.S. e-commerce up 24%, marketplace up 52%, and advertising up 38% (Walmart Connect up 43%).
Walmart delivered a strong quarter, with sales at the top end of guidance and significant operating income growth, despite a competitive price investment strategy funded by tariff refunds. Management raised full-year guidance, citing durable share gains and a robust e-commerce and commerce solutions strategy. Enterprise sales grew 5% in constant currency, with U.S. e-commerce up 24%, marketplace up 52%, and advertising up 38% (Walmart Connect up 43%).
Walmart delivered a strong quarter, with sales at the top end of guidance and significant operating income growth, despite a competitive price investment strategy funded by tariff refunds. Management raised full-year guidance, citing durable share gains and a robust e-commerce…
Enterprise sales grew 5% in constant currency, with U.S. e-commerce up 24%, marketplace up 52%, and advertising up 38% (Walmart Connect up 43%).
Management highlighted AI as a key driver of engagement and spending: Sparky usage is up 70% year-over-year, and Sparky users spend 40% more per order. They see AI improving shopping convenience, personalization, and associate productivity across the business.
Management raised FY27 sales, operating income, and EPS guidance, while warning of a larger headwind from Maximum Fair Pricing in health & wellness (125 bps comp impact).
Management highlighted AI as a key driver of engagement and spending: Sparky usage is up 70% year-over-year, and Sparky users spend 40% more per order. They see AI improving shopping convenience, personalization, and associate productivity across the business.
Demand remains resilient with continued market share gains, particularly in food and general merchandise categories. Management noted some consumer pressure from higher fuel prices and a slightly softer environment, but emphasized that price investments are driving durable share gains and unit growth. They expect Walmart U.S. sales growth to improve in Q3 as price investments translate into strong
CapEx guidance was raised slightly to approximately 4% of annual net sales, reflecting continued investment in supply chain automation, fulfillment capacity, and technology. Even with the increase, management expects double-digit free cash flow growth this year.
Management expressed strong conviction in the strategy and business model, citing sustained market share gains, accelerating e-commerce growth, and the successful scaling of platform businesses, while acknowledging near-term macro headwinds.
“The Walmart U.S. team delivered more than 11,000 rollbacks during the quarter, up from 7,200 rollbacks at the end of the first quarter”
“Our Walmart U.S. e-commerce business achieved double-digit incremental margins for the first half of the year.”
“70% of all of our e-commerce orders are delivered same day or better.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2027 | 4% | 4% | RAISED |
| EPS | FY2027 Q3 | $0.62–$0.64 | $0.63 | GUIDED |
| EPS | FY2027 | $2.80–$2.87 | $2.83 | RAISED |
| Op margin | FY2027 | 7%–8.5% | 7.75% | RAISED |
| Op margin | FY2027 Q3 | 2%–4% | 3% | GUIDED |
| Revenue | FY2027 Q3 | 3%–3.75% | 3.375% | GUIDED |
| Revenue | FY2027 | 4%–5% | 4.5% | RAISED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q3 | EPS | FY2026 Q4 | $0.67–$0.72 | $0.74 | Met / beat |
Walmart continues to leverage Vizio's advertising platform to drive high-margin revenue growth, emphasizing the importance of connected TV advertising in its media mix.
“Combined with Walmart Connect and Vizio, this further strengthens our platform and creates value for customers, sellers, suppliers, and advertisers.”
… and Canada, and we launched Walmart Plus in Canada. Membership was also a highlight with double-digit growth for Walmart Plus and strong growth for Sam's Club in the US, China, and Mexico. We also gave a boost to our advertising business with the acquisition of Vibe. We believe Vibe expands our ability to help advertisers of all sizes reach customers through self-service tools while measuring results against real shopping behavior. Combined with Walmart Connect and Vizio, this further strengthens our platform and creates value for customers, sellers, suppliers, and advertisers. These are important milestones because they demonstrate the value we're creating across the company. Rather than building entirely new capabilities market by market, we're increasingly able to build once, improve continuously, and scale globally. That makes us faster and more efficient and allows customers in more markets to benefit from innovations developed anywhere across Walmart. The fourth area is our supply chain. We've invested in automation, technology, fulfillment capacity, and our physical network, and these investments are showing up in customer experience. They're allowing us to move …
Walmart is deploying tariff refunds ($2.9B) aggressively into price investments, with a notable increase in rollbacks from 7,200 to 11,000 items, and is seeing durable share gains in food categories as a result. — Walmart's aggressive price investments are likely to pressure competitors' margins and market share, especially in grocery.
… price leadership. As we said, coming out of Q1, customers tell us they're still feeling some pressure, but it's clear. Customers are looking for value and convenience and they want things fast. And that's where Walmart shines. Having the best prices across a basket of goods helps us continue to build trust with our customers and members by helping them save money at a time when many households are carefully managing their budgets. The Walmart U.S. team delivered more than 11,000 rollbacks during the quarter, up from 7,200 rollbacks at the end of the first quarter, demonstrating our commitment to price investment. We're investing heavily in price because customers need us to and because we believe it drives market share gains over time. Our price gaps to conventional grocers here in the U.S. are strong and they continue to widen. The share gains we see from this channel have persisted alongside the drug and dollar formats. A secondary I'd like to highlight is our ongoing strength in e-commerce. The sustained growth we've seen in e-commerce across the company over multiple years points to more than a digital success story. It's evidence that customers and members …
Walmart's U.S. e-commerce business achieved double-digit incremental margins, driven by growth in advertising (Walmart Connect up 43%), membership, and fast delivery, signaling a strengthening digital profit engine. — This sustained profitability improvement shows Walmart is closing the gap with Amazon in e-commerce economics, increasing competition for online retail and advertising spend.
… half of membership growth in its history. We're building what we believe can be the most essential membership program for consumers and excited for what's ahead. The thing that people sometimes overlook when reflecting on our membership program is the incrementality that we see on GMV. Our members spend approximately four times more than non-members. Turning to incremental margins, the profitability of our e-commerce business continues to improve. Our Walmart U.S. e-commerce business achieved double-digit incremental margins for the first half of the year. This was driven by continued strong ad and membership revenue, further densification of our delivery network, growth in fee-based fast deliveries, which represented an all-time high of 37% of store-fulfilled deliveries in the quarter, and lastly, the benefits of automation. 3,100 of our U.S. stores are now served with some level of automated freight, and we're processing over 50% of our e-commerce fulfillment volume through automated facilities. Now I want to address a few areas in a little more detail. The first is the Walmart U.S. comp. To help understand the composition of our U.S. comp sales by merchandise category, we …
Sub-30 minute delivery is now available in 38 markets, and unit volumes delivered in under 30 minutes doubled YoY, driving higher customer engagement and membership. — Walmart's expanding fast delivery network intensifies competition with Amazon Prime Now and third-party delivery platforms for last-mile share.
Hey, thanks guys. Just on the price investments could you Talk about how that's framing your comp assumptions from a traffic versus ticket perspective in the second half. Sorry if I missed that earlier. Also, curious on the OPEX growth in the U.S. is up 7%. Were there any timing shifts that impacted that? Are the liability claims coming in a bit above what you thought? Just curious how we should think about that line item and how it will grow in the second half of the year. Thanks.
Paul, on SG&A, let me address that in a couple parts. One of the bigger drivers was depreciation. Depreciation is related to the CapEx that we've had that has really been around supply chain automation and addressing speed. And look, we are really pleased with the results that we're seeing. Just in the current quarter, the number of units that we delivered in less than 30 minutes doubled from a year ago. 70% of all of our e-commerce orders are delivered same day or better. That doesn't come without the investments that we've made. So we're really pleased there. We did have some pressure on what we're calling some of the self-insurance items and The two categories that I would put in there are claims, as you asked about, but also group health. And if you take the first half of the year, about two thirds of the increase is from group health. And what's happening there is our attrition has gone down quite appreciably in some cases. And by the way, this is a really good thing for our business. More seasoned, tenured associates serving our customers and members. But with attrition going down, the number of enrollees in that plan has increased. So given the size company we are, we've seen a little bit of pressure there. The last thing I'll say is from any quarter to one to the next, Sometimes you lean in a little bit more to investments in the business. And while I did not call that out in my prepared remarks, I think this quarter falls into that category where we felt like it was prudent to make some of those investments that hopefully benefit the back half of the year.