EX-99.1 2 earningsreleasefy27q2.htm EX-99.1 Document Walmart reports second quarter results • Revenue growth of 5.9%, up 5.1% in constant currency (cc) 1 • Operating income growth of 28.8%, up 17.4% adjusted (cc) 1 • eCommerce sales up 23% globally • GAAP EPS of $0.80; Adjusted EPS 1 of $0.81 • Company issues guidance for Q3; raises outlook for FY27 “ BENTONVILLE, Ark., August 20, 2026 – Walmart Inc. (NASDAQ: WMT) announces second-quarter results with strong growth in revenue, including eCommerce, which grew 23% globally with strength across segments. Walmart U.S. comp sales 2 grew 2.6%, led by growth in transactions and includes 80 bps headwind from health & wellness. The Company issues guidance for the third quarter and raises its outlook for the fiscal year. For Q3, net sales are expected to grow 3.0% to 3.75% and adjusted operating income to grow 2.0% to 4.0%. Net sales for FY27 are expected to grow 4.0% to 5.0% and adjusted operating income to grow 7.0% to 8.5%, all in constant currency (“cc”) 1 . Adjusted EPS 1 is expected to be $0.62 to $0.64 for Q3 and $2.80 to $2.87 for FY27. Our team delivered another good quarter, and we continue to make steady progress on the long-term value drivers of our business. Our multi-year growth in eCommerce is evidence that customers are choosing Walmart because we deliver price, speed, and convenience across a broad assortment. At Walmart, they can have it all.” John Furner President and CEO, Walmart Second Quarter Highlights • Revenue of $187.9 billion, up 5.9%, or 5.1% (cc) 1 • Global eCommerce sales grew 23%, led by store-fulfilled pickup & delivery and marketplace • Global advertising business 3 up 38%, with strength across segments. Walmart U.S. advertising up 38% • Membership fee revenue grew 17% globally • Gross profit rate up 96 bps, led by Walmart U.S., primarily impacted by tariff refund impacts noted below • Operating income up $2.1 billion, or 28.8%; up 17.4% adjusted (cc) 1 ; which includes the impact of tariff refunds received, partially offset by price investments in the quarter. Setting aside this net impact, underlying operating income growth was at the top end of our guidance. Our outlook reflects the continued prioritization of remaining tariff refunds into price investments • Adjusted EPS 1 of $0.81 excludes the impact, net of tax, from a net loss of $0.12 on equity and other investments, and net benefit of $0.11 from a certain tax matter • ROA at 8.0%; ROI at 15.4% 1 • Global inventory up 6.7%; up 6.0% (cc) 4 , due to strategic initiatives and inflation 1 See additional information at the end of this release regarding non-GAAP financial measures. 2 Comp sales for the 13-week period ended July 31, 2026 compared to the 13-week period ended August 1, 2025 and excludes fuel. See Supplemental Financial Information for additional information. 3 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement. 4 Inventory grew 6.7% on a reported basis and grew 6.0% in constant currency, excluding a ~$0.4 billion foreign currency impact. “cc” - constant currency Key Financial Metrics Dollars in billions, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale. Balance Sheet and Liquidity • Cash and cash equivalents of $11.5 billion • Total debt of $57.2 billion 2 • Operating cash flow of $19.7 billion, an increase of $1.4 billion • Free cash flow 1 of $5.5 billion, a decrease of $1.4 billion • Repurchased 42.3 million shares YTD, or $5.1 billion 3 • Inventory of $61.6 billion, an increase of $3.9 billion, or 6.7%, up 6.0% cc 4 1 See additional information at the end of this release regarding non-GAAP financial measures. 2 Debt includes short-term borrowings, long-term debt and finance lease obligations due within one year, and long-term debt and finance lease obligations. 3 $25.1 billion remaining of the $30 billion authorization approved in February 2026. 4 Inventory grew 6.7% on a reported basis and grew 6.0% in constant currency, excluding a ~$0.4 billion foreign currency impact.        cc - constant currency 2 Business Highlights and Strategic Initiatives Dollars in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding. Walmart U.S. Q2 FY27 Q2 FY26 Change Net sales $125.2 $120.9 $4.3 3.5% Comp sales (ex. fuel) 2 2.6% 4.6% NP NP Transactions 1.5% 1.5% NP NP Average ticket 1.1% 3.1% NP NP eCommerce contribution to comp ~510 bps ~420 bps NP NP Operating income $8.1 $6.7 $1.4 20.6% Walmart U.S. • Sales reflected continued strong momentum in eCommerce and broad-based share gains, partially offset by 125 bps headwind to comp sales from pharmacy deflation related to new maximum fair price regulation (effective Jan 1) • eCommerce sales increased 24%, with strength in store-fulfilled delivery, advertising, and marketplace • Strong advertising growth continued, up 38% overall, including 43% increase in Walmart Connect (ex-VIZIO) • Gross profit grew 158 bps due to the benefit associated with tariff refunds and improved business mix; partially offset by price investments and higher fuel costs • Membership fee revenue grew double-digits as Walmart+ net adds reflected a record second quarter high • Operating expense deleveraged 72 bps due to higher claims expense, depreciation, and associate healthcare costs • Operating income up 20.6%, reflects higher gross profit, as noted above, and improved eCommerce economics • Inventory increased 6.3% due primarily to strategic initiatives and inflation Walmart International Q2 FY27 Q2 FY26 Change Net sales $35.2 $31.2 $4.0 12.8% Net sales (cc) 1 $33.7 $31.2 $2.5 7.9% Operating income $1.4 $1.2 $0.2 16.6% Operating income (cc) 1 $1.3 $1.2 $0.1 5.7% Walmart International • Growth in net sales (cc) 1 across markets, with momentum in eCommerce and stores ◦ Transaction counts and unit volumes up, contributing to growth across all categories • eCommerce sales up 19%, led by store-fulfilled pickup & delivery, with digital mix up across markets • Advertising business 3 grew 20%, led by Flipkart Ads • Operating income growth (cc) 1 benefited by lower losses in eCommerce and business mix changes • Currency rate fluctuations positively affected sales by $1.5 billion and operating income by $0.1 billion 1 See additional information at the end of this release regarding non-GAAP financial measures. 2 See Supplemental Financial Information for additional information. 3 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement. NP - Not provided cc - constant currency 3 Sam’s Club U.S. Q2 FY27 Q2 FY26 Change Net sales $25.7 $23.6 $2.1 8.8% Net sales (ex. fuel) $22.1 $21.2 $1.0 4.5% Comp sales (ex. fuel) 1 4.4% 5.9% NP NP Transactions 7.0% 3.9% NP NP Average ticket -2.5% 2.0% NP NP eCommerce contribution to comp ~450 bps ~350 bps NP NP Operating income $0.7 $0.5 $0.2 44.3% Adjusted operating income 2 $0.7 $0.6 $0.1 23.3% Sam’s Club U.S. • Comp sales driven by increased transactions and total unit volumes with strength in grocery and general merchandise • eCommerce sales up 26% with continued strong growth in club-fulfilled pickup & delivery • Membership fee revenue grew 6% driven by steady growth in member counts and Plus penetration • Operating income growth reflects the benefit associated with tariff refunds and membership growth • Inventory up 8.0%, primarily related to higher fuel costs and volumes, including fuel upstreaming with a strategic partner 1 See Supplemental Financial Information for additional information. 2 See additional information at the end of this release regarding non-GAAP financial measures. NP - Not provided 4 Guidance The following guidance reflects the Company’s expectations as of August 20, 2026.This guidance is subject to substantial risk and uncertainty that could cause actual results to differ materially from these expectations. These risks and uncertainties include, but are not limited to, the factors set forth below under the heading Forward-looking statements. Additionally, guidance is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company’s equity and other investments. Growth rates reflect an adjusted basis for prior year results. “Our business model is only getting stronger and more durable, and we’re pleased to raise our guidance for the year. For Q3 sales guidance, we expect a headwind of over 100bps to growth related to a timing shift of Flipkart’s Big Billion Days between Q3 and Q4. Our operating income outlook reflects the continued prioritization of tariff refunds received in Q2 into customer experience and price investments in the second half. For this reason, I encourage you to consider Q2 and Q3 performance together to assess the underlying growth of the business,” said John David Rainey, Walmart Inc. executive vice president and chief financial officer. Third quarter The Company’s third quarter fiscal 2027 guidance is based on the following Q3 FY26 figures: Net sales: $177.8 billion, adjusted operating income 1 : $7.3 billion, and adjusted EPS 1 : $0.62. Consolidated metric Q3 FY27 Net sales (cc) Increase 3.0% to 3.75% Operating income (cc) Increase 2.0% to 4.0% Adjusted EPS $0.62 to $0.64 Fiscal year 2027 The Company’s fiscal year guidance is based on the following FY26 figures: Net sales: $706.4 billion, adjusted operating income 1 : $31.0 billion, and adjusted EPS 1 : $2.64. Consolidated metric Original from 2.19.2026 As of 5.21.2026 As of 8.20.2026 Net sales (cc) Increase 3.5% to 4.5% Unchanged Increase 4.0% to 5.0% Adj. operating income (cc) Increase 6.0% to 8.0% Unchanged Increase 7.0% to 8.5% Adj. Interest, net 2 Increase approximately $200M to $300M Unchanged Unchanged Effective tax rate Approximately 23.5% to 24.5% Unchanged Unchanged Adj. EPS $2.75 to $2.85 Unchanged $2.80 to $2.87 Capital expenditures Approximately 3.5% of net sales Unchanged Approximately 4.0% of net sales 1 For relevant non-GAAP reconciliations, see Q3 FY26 and Q4 FY26 earnings release furnished on Form 8-K on November 20, 2025 and February 19, 2026, respectively. 2 See additional information at the end of this release regarding non-GAAP financial measures. cc - constant currency 5 About Walmart Walmart Inc. (Nasdaq: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 280 million customers and members visit more than 10,900 stores and numerous eCommerce websites in 19 countries. With fiscal year 2026 revenue of $713 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X at x.com/walmart, and on LinkedIn at linkedin.com/company/walmart. Investor Relations contact: Steph Wissink – ir@walmart.com Media Relations contact: Jennifer Rodriguez – press@walmart.com 6 Forward-looking statements This release and related management commentary contains statements that may be "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements. Statements of our guidance, projections, estimates, expectations, plans, and objectives for fiscal 2027 in this release and related management commentary are forward-looking statements. Assumptions on which such forward-looking statements are based are also forward-looking statements. Such forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our consolidated economic performance or results of operations for future periods or as of future dates or events or developments that may occur in the future or discuss our plans, objectives or goals. These forward-looking statements can be identified by their use of words or phrases such as “anticipate,” “could,” “could be,” “believe,” “expect,” “forecast,” “plan,” “projected,” “will be” “will improve,” variations of such words or phrases or similar words and phrases denoting anticipated or expected occurrences or results. The forward-looking statements that we make are based on our knowledge of our business and our operating environment and assumptions that we believe to be or will believe to be reasonable when such forward-looking statements were or are made. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: economic, capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, store or club closures, and other strategic decisions; our ability to successfully integrate acquired businesses, including within the eCommerce space; changes in the trading prices of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures (including pressures arising from the development and deployment of artificial intelligence technologies); customer traffic and average ticket in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; trends in consumer shopping habits around the world and in the markets in which we operate; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; transportation, energy and utility costs; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; consumer acceptance of and response to our stores, clubs, eCommerce, digital, and agentic platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; expenses pertaining to liabilities for which we self-insure, including general liability, workers’compensation, auto liability, product liability and employee-related healthcare costs; consumer enrollment in health and drug insurance programs and such programs’ reimbursement rates and drug formularies; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, pandemics or other crises, geopolitical events and catastrophic events; and changes in generally accepted accounting principles in the United States. Our most recent annual report on Form 10-K and subsequent quarterly report filed with the SEC discusses other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in the release and related management commentary. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made in the release are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. This release and related management commentary references certain non-GAAP measures as defined under SEC rules, including net sales and operating income on a constant currency basis, adjusted operating income, free cash flow, and return on investment. Information about the non-GAAP measures as required by Regulation G and Item 10(e) of Regulation S-K regarding non-GAAP measures for the applicable periods can be found in our previously filed reports on Form 10-K and earnings releases filed via Form 8-K with the SEC, which are available at stock.walmart.com. 7 Walmart Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended Six Months Ended July 31, July 31, (Amounts in millions, except per share data) 2026 2025 Percent Change 2026 2025 Percent Change Revenues: Net sales $ 186,100  $ 175,750  5.9 % $ 361,784  $ 339,731  6.5 % Membership and other income 1,837  1,652  11.2 % 3,904  3,280  19.0 % Total revenues 187,937  177,402  5.9 % 365,688  343,011  6.6 % Costs and expenses: Cost of sales 138,804  132,771  4.5 % 271,862  257,074  5.8 % Operating, selling, general and administrative expenses 39,750  37,345  6.4 % 76,950  71,516  7.6 % Operating income 9,383  7,286  28.8 % 16,876  14,421  17.0 % Interest: Debt 137  651  (79.0 %) 711  1,170  (39.2 %) Finance lease 126  118  6.8 % 251  236  6.4 % Interest income (92) (94) (2.1 %) (171) (187) (8.6 %) Interest, net 171  675  (74.7 %) 791  1,219  (35.1 %) Other (gains) and losses 1,200  (2,708) NM 925  (2,111) NM Income before income taxes 8,012  9,319  (14.0 %) 15,160  15,313  (1.0 %) Provision for income taxes 1,483  2,168  (31.6 %) 3,141  3,523  (10.8 %) Consolidated net income 6,529  7,151  (8.7 %) 12,019  11,790  1.9 % Consolidated net income attributable to noncontrolling interest (163) (125) 30.4 % (323) (277) 16.6 % Consolidated net income attributable to Walmart $ 6,366  $ 7,026  (9.4 %) $ 11,696  $ 11,513  1.6 % Net income per common share: Basic net income per common share attributable to Walm