Add to Google Preferred Sources
Walmart raised its fiscal 2027 outlook after second-quarter net sales rose 5.9% to $187.9 billion, driven by 23% growth in global e-commerce and a 20% increase in international advertising led by Flipkart Ads. Operating income jumped 28.8% to $9.38 billion. Walmart US, International, and Sam’s Club all posted e-commerce gains of 24%, 19%, and 26% respectively. The company now expects full-year net sales growth of 4% to 5% and adjusted operating income growth of 7% to 8.5% in constant currency. However, shares fell 8.7% as investors weighed a more than 100-basis-point drag on Q3 sales from the timing shift of Flipkart’s Big Billion Days sale. Q3 adjusted EPS is projected between $0.62 and $0.64.
Key Elements
Walmart (WMT) raised its full-year outlook after second-quarter net sales climbed 5.9%, driven by accelerating e-commerce growth across its US, international, and Sam’s Club segments. The Bentonville, Arkansas-based retailer now expects fiscal 2027 net sales to grow 4% to 5% in constant currency, up from a prior forecast of 3.5% to 4.5%.
Consolidated revenue for the period ended July 31 reached $187.9 billion, while operating income jumped 28.8% to $9.38 billion. Global e-commerce sales expanded 23%, powered by store-fulfilled pickup and delivery, marketplace activity, and a strengthening advertising business.
Despite the raised guidance, shares fell 8.7% on Thursday — the steepest single-day decline since July 2022 — as investors weighed the strong digital performance against a near-term growth comparison distorted by a calendar shift at Indian e-commerce unit Flipkart.
“Our team delivered another good quarter, and we continue to make steady progress on the long-term value drivers of our business,” President and CEO John Furner said in a statement. “Our multi-year growth in e-commerce is evidence that customers are choosing Walmart because we deliver price, speed, and convenience across a broad assortment.”
Walmart US posted net sales of $125.18 billion, up 3.5% year over year, while operating income rose 20.6% to $8.12 billion. Comparable sales excluding fuel increased 2.6%, with transactions up 1.5% and average ticket size rising 1.1%. E-commerce sales in the segment grew 24%, supported by store-fulfilled delivery, advertising, and marketplace operations.
Walmart International delivered the strongest top-line growth among the company’s major divisions. Net sales climbed 12.8% to $35.19 billion, or 7.9% on a constant-currency basis. Currency fluctuations added $1.5 billion to sales and $0.1 billion to operating income. Operating income in the segment increased 16.6% to $1.43 billion, or 5.7% in constant currency.
The international advertising business grew 20%, led by Flipkart Ads, while e-commerce sales rose 19%. International e-commerce now represents roughly 30% of net sales on a constant-currency basis. The company attributed the segment’s profitability improvement to lower e-commerce losses and changes in business mix.
Sam’s Club US reported net sales of $25.71 billion, up 8.8%, with e-commerce growing 26% on continued strength in club-fulfilled pickup and delivery. Membership fee revenue increased 6%, and operating income surged 44.3% to $678 million.
| Segment | Net Sales | YoY Change | Operating Income | YoY Change |
|---|---|---|---|---|
| Walmart US | $125.18B | +3.5% | $8.12B | +20.6% |
| Walmart International | $35.19B | +12.8% | $1.43B | +16.6% |
| Sam’s Club US | $25.71B | +8.8% | $678M | +44.3% |
Note: Figures are for the quarter ended July 31, 2026.
Flipkart Calendar Shift Weighs on Q3
The company flagged a headwind of more than 100 basis points to third-quarter sales growth due to the timing shift of Flipkart’s Big Billion Days sale between the third and fourth quarters. The flagship event will no longer contribute to the same quarter in the year-over-year comparison.
For Q3, Walmart expects consolidated net sales growth of 3% to 3.75% and adjusted operating income growth of 2% to 4%, both in constant currency. Adjusted earnings per share is projected between $0.62 and $0.64.
CFO John David Rainey indicated that investors should evaluate the second and third quarters together when assessing the underlying growth rate given the sale calendar shift. “Our business model is only getting stronger and more durable, and we’re pleased to raise our guidance for the year,” Rainey said.
For fiscal 2027, Walmart raised adjusted operating income growth guidance to 7% to 8.5%, up from 6% to 8%, while adjusted EPS guidance increased to $2.80 to $2.87 from $2.75 to $2.85. The operating income outlook incorporates the use of tariff refunds received during Q2 toward customer experience and price investments in the second half.
Consolidated net income attributable to Walmart fell 9.4% to $6.36 billion in the quarter, though for the six-month period it rose 1.6% to $11.69 billion. Six-month net sales increased 6.5% to $361.78 billion, with operating income up 17.0% to $16.87 billion.
The results underscore Walmart’s continued momentum in digital commerce and advertising, particularly within its international operations. While the Flipkart sale calendar creates a temporary distortion in the next quarter’s growth comparison, the raised full-year guidance signals management’s confidence that higher sales, operating income, and earnings will persist through the fiscal year.
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.
