Walmart reported second-quarter revenue of $187.9 billion, up 5.9% year-on-year, while global e-commerce sales increased 23%. Operating income rose 28.8%, while adjusted earnings per share came in at $0.81. Walmart US comparable sales rose 2.6%, including an 80-basis-point headwind from health and wellness.
The company flagged the impact of the timing change while raising its full-year fiscal 2027 guidance. The company said the Big Billion Days event has shifted between the third and fourth quarters this year, affecting the year-on-year comparison for Q3.
Walmart shares fell 8.7% following the Q2 results on Thursday, marking their biggest one-day decline since July 2022, even as the retailer raised its full-year fiscal 2027 guidance. The company now expects consolidated net sales to grow 4-5% in constant currency, compared with its earlier forecast of 3.5-4.5%.
John David Rainey, Walmart’s executive vice president and chief financial officer, said: “Our business model is only getting stronger and more durable, and we’re pleased to raise our guidance for the year.”
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Flipkart Ads leads International advertising growth
Walmart International reported net sales of $35.2 billion in Q2FY27, up 12.8% year-on-year. On a constant-currency basis, net sales rose 7.9% to $33.7 billion.
The segment’s e-commerce sales increased 19%, led by store-fulfilled pickup and delivery, with digital mix increasing across markets. Its advertising business grew 20%, with Flipkart Ads identified as the leading contributor.
Walmart International’s operating income rose 16.6% to $1.4 billion, while operating income on a constant-currency basis increased 5.7% to $1.3 billion. The company said operating income growth on a constant-currency basis benefited from lower e-commerce losses and changes in business mix.
Big Billion Days timing creates Q3 headwind
Walmart expects the timing shift of Flipkart’s Big Billion Days between Q3 and Q4 to reduce its Q3 sales growth by more than 100 basis points.
Rainey encouraged investors to consider the second and third quarters together when assessing the underlying growth rate because of the timing impact.
For Q3FY27, Walmart expects consolidated net sales to increase 3% to 3.75% in constant currency, while operating income is expected to rise 2% to 4%. Adjusted earnings per share are expected at $0.62-$0.64.
Walmart raises FY27 guidance
Despite the expected Q3 impact from the Flipkart event timing, Walmart raised its fiscal 2027 outlook.The company now expects consolidated net sales to grow 4% to 5% in constant currency, compared with its earlier guidance of 3.5% to 4.5%. Adjusted operating income growth guidance was raised to 7% to 8.5% from 6% to 8%, while adjusted EPS guidance was increased to $2.80-$2.87 from $2.75-$2.85.
Walmart said its operating income outlook reflects the continued prioritisation of tariff refunds received in Q2 towards customer experience and price investments in the second half.
US e-commerce continues to grow
Walmart US reported net sales of $125.2 billion, up 3.5% year-on-year. Comparable sales excluding fuel increased 2.6%, while transactions rose 1.5% and average ticket increased 1.1%.
US e-commerce sales increased 24%, supported by store-fulfilled delivery, advertising and marketplace operations. Walmart US operating income rose 20.6% to $8.1 billion. The company said a 125-basis-point headwind to comparable sales came from pharmacy deflation related to new maximum fair price regulation effective January 1.
Globally, Walmart’s Q2 performance included continued e-commerce growth across its markets, with International e-commerce accounting for around 30% of net sales on a constant-currency basis.
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