Walmart Q2 FY27 earnings: tariff refunds boost sales outlook

Walmart Q2 FY27 earnings: tariff refunds boost sales outlook

Thu, August 20, 2026 at 2:09 PM GMT+3 2 min read

• WMT +0.10%

Walmart reported second-quarter results on Thursday that beat Wall Street expectations and prompted the company to raise its full-year outlook, as tariff refunds lifted margins and e-commerce continued to grow.

Total revenue rose 5.9% to $187.94 billion for the three months ended July 31. Adjusted earnings per share came in at 81 cents. That beat analyst expectations of 74 cents, and revenue of $186.77 billion, according to CNBC.

The company's gross profit rate climbed 96 basis points to 25.4%, driven by tariff refund benefits, the company said. According to CNBC, Walmart expects to collect nearly $2.9 billion in tariff refunds, with under $100 million of that amount still outstanding, and the company intends to pass the savings along to shoppers through price reductions. Chief Financial Officer John David Rainey said the impact on prices would be felt in the third quarter.

Global e-commerce sales grew 23% in the quarter. Walmart U.S. comparable sales rose 2.6%, though health and wellness presented an 80 basis point headwind as price caps on certain drugs took effect. U.S. net sales reached $125.2 billion, up from $120.9 billion a year earlier. Sam's Club U.S. generated $25.7 billion in net sales, an 8.8% year-over-year increase, with fuel-excluded comparable sales up 4.4%. Walmart International net sales grew 12.8% to $35.2 billion, or 7.9% in constant currency.

Operating income rose 28.8% to $9.38 billion, which the company said reflected tariff refund benefits, partially offset by price investments. The company said that setting aside the net tariff refund impact, underlying operating income growth was at the top end of its prior guidance range.

Membership fee revenue across the company rose 17%, and Walmart+ recorded its highest number of new subscribers for any second quarter. Global advertising revenue climbed 38%.

For the third quarter, Walmart said it expects net sales to grow between 3% and 3.75% in constant currency and adjusted EPS of 62 to 64 cents. The company said a timing shift in Flipkart's Big Billion Days event from the third quarter to the fourth quarter would create a headwind of more than 100 basis points to third-quarter sales growth.

For the full fiscal year 2027, Walmart raised its net sales growth outlook to 4% to 5% in constant currency, from a prior range of 3.5% to 4.5%. The company also raised its adjusted EPS guidance to $2.80 to $2.87, up from $2.75 to $2.85, and increased its adjusted operating income growth outlook to 7% to 8.5%, from 6% to 8%.

"Our business model is only getting stronger and more durable, and we're pleased to raise our guidance for the year," Chief Financial Officer John David Rainey said in a statement.