Walmart’s second-quarter results showed solid top-line momentum even as profit pressures lingered. The company pulled in $177.4 billion in revenue for the quarter, up about 5% from last year.
Stripping out currency moves, growth was a little stronger at just over 5.5%. The bigger driver, though, was online as e-commerce sales jumped 25% as shoppers kept turning to pickup and delivery.
Advertising also delivered a lift, with global sales up 46%. In the US, Walmart Connect grew 31%, helped by tie-ups with Vizio and other partners.
Membership income rose roughly 15% worldwide, adding to steady gains across related revenue streams.
Walmart’s operating income dropped 8.2% as legal and restructuring charges, along with higher liability expenses, weighed on results and carved about 560 basis points from margins.
Without those hits, earnings were steadier as adjusted operating income inched up just under half a percent on a constant-currency basis.
Adjusted EPS came in at $0.68, shy of the $0.74 analysts were looking for. On the other hand, reported GAAP earnings climbed to $0.88 a share from $0.56 a year earlier, underscoring a stronger profit picture once the unusual costs are set aside.
Consumer resilience and strategic outlook
Walmart’s latest quarter highlighted the staying power of its customer base even as US households continue to juggle inflation and tariffs.
The company noted that nearly 90% of Americans shop with Walmart in some form, with about 270 million people visiting its 10,750 stores and digital platforms each week.
Comparable sales in the US rose 4.6%, a touch stronger than last quarter, led by grocery and health-and-wellness.
Digital demand was a clear driver as well, with eCommerce growth picking up pace and feeding into the revenue line.
Gross margin rose four basis points as pricing and scale offset cost pressures. The company lifted its full-year outlook, projecting revenue growth of 3.75%–4.75% and adjusted EPS of $2.52–$2.62.
Walmart Connect and fulfillment services added to gains, but management warned inflation and supply chain issues could weigh on results.
What analysts say?
Walmart’s pull with budget-conscious shoppers is still seen as one of its biggest advantages, particularly in groceries. Analysts say that gives it some insulation as households juggle higher prices and uneven spending.
Gains in digital and membership programs are also adding to its longer-term story.
Walmart’s Q2 showed solid sales momentum, even as profit took a hit from legal and restructuring costs.
EPS fell short of some forecasts, but steady revenue gains, strong eCommerce growth, and an improved full-year outlook gave investors reason to stay confident in the retailer’s position and ability to adapt in a choppy retail environment.
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