Walmart (WMT) Fiscal Q2 2027 Earnings Call: E-Commerce Growth and Raised Guidance
Source Tradingkey
Key Takeaways
- Walmart’s fiscal Q2 2027 net sales grew 5% in constant currency, at the top end of management’s 4%–5% guidance. Adjusted operating income rose 17.4% in constant currency.
- Tariff refunds contributed approximately 750 basis points to Q2 operating income growth. Excluding that benefit, underlying operating income growth was at the top end of the company’s 7%–10% guidance range.
- Global e-commerce sales increased 23%. Walmart U.S. e-commerce grew 24%, Sam’s Club U.S. rose 26%, and International advanced 19%.
- Higher-margin businesses continued to expand: global advertising revenue increased 38%, U.S. marketplace net sales rose 52%, and global membership income grew nearly 17%.
- Walmart raised its fiscal 2027 sales growth outlook to 4%–5%, operating income growth guidance to 7%–8.5%, and adjusted EPS guidance to $2.80–$2.87.
- Management expects more than $2 billion of incremental fuel-related costs for the year and a roughly 125-basis-point headwind to Walmart U.S. comparable sales from maximum fair pricing regulation.
Core Financial Data
| Metric | Fiscal Q2 2027 result | Commentary |
|---|---|---|
| Enterprise net sales | +5% constant currency | Top end of management’s 4%–5% guidance |
| Adjusted operating income | +17.4% constant currency | Included a net benefit of about 750 basis points from tariff refunds |
| Adjusted EPS | +19% | Supported by operating income growth and tariff refunds |
| Walmart U.S. net sales | +3.5% | Comparable sales excluding fuel increased 2.6% |
| Walmart U.S. comparable sales | +2.6% | Led by transactions; health and wellness reduced growth by about 125 basis points |
| Sam’s Club U.S. comparable sales | +4.4% | Transactions increased 7% |
| International sales | +7.9% constant currency | Led by China and India; China grew 9.7% |
| Global e-commerce sales | +23% | Continued broad-based growth across operating segments |
| Global advertising revenue | +38% | Walmart Connect increased 43% |
| Global membership income | Nearly +17% | Walmart+ maintained double-digit growth |
| Quarter-end inventory | +6% constant currency | Reflected cost inflation and inventory supporting strategic initiatives |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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