Walmart reported second-quarter earnings on August 20 that surpassed Wall Street expectations, with revenue climbing 5.2% year-over-year to $186.3 billion and adjusted earnings per share reaching $0.74, as the retail giant's e-commerce and grocery businesses continued to outpace traditional retail.
The results, announced before the market open, showed the world's largest retailer maintaining momentum even as consumer spending patterns shift and tariff uncertainty looms. Global e-commerce sales grew 24% year-over-year, while grocery comparable sales rose 5.8% on a constant-currency basis.
Walmart U.S. comparable sales increased 4.9% excluding fuel, slightly ahead of analyst forecasts. The company's international segment, which includes operations in Canada, Mexico, China, and India, posted 7.2% revenue growth in constant currency, driven by strong performance in Flipkart and the company's expanding marketplace platform.
The retail giant raised its full-year guidance, now expecting net sales growth of 4.5% to 5.0% and adjusted earnings per share of $2.45 to $2.55. The upgraded outlook reflects confidence that the company's investments in automation, store remodels, and digital infrastructure are translating into sustained market share gains.
However, CFO John David Rainey cautioned that pharmacy pricing headwinds and ongoing consumer trade-down behavior could pressure margins in the back half of the year. The company also noted elevated inventory levels in certain general merchandise categories as it navigates softening demand for discretionary items.
Walmart's advertising business, which includes Walmart Connect, grew 28% to $2.8 billion in the quarter, highlighting the company's push to diversify revenue beyond traditional retail. The segment now accounts for a meaningful portion of overall profitability and is seen as a key growth driver going forward.
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