walmart On Thursday, it raised its outlook for the year after quarterly sales beat Wall Street expectations and benefited from strong quarterly growth in e-commerce and tariff rebates.
“Our business is strong,” CFO John David Rainey told CNBC. “We’re really happy with the progress we’re making.”
The company said its fiscal second quarter sales increased 5.9% as e-commerce sales increased 23% globally. Walmart also said U.S. comparable sales increased 2.6%, partially offset by a 0.8% headwind to its health and wellness business due to the implementation of price caps on certain pharmaceuticals. That was less than the 3.5% increase Wall Street had expected, according to FactSet.
Walmart stock fell nearly 10% in Thursday morning trading as Wall Street appeared disappointed with the company’s quarterly sales results and the company’s revenue outlook.
For the third quarter, Walmart said it expects net sales to increase 3% to 3.75% and adjusted earnings per share to be 62 cents to 64 cents.
The retailer expects full-year net sales to increase 4% to 5%, compared with its previous outlook of 3.5% to 4.5% growth. Walmart also expects adjusted earnings to be between $2.80 and $2.87 per share, compared with its previous guidance of between $2.75 and $2.85 per share.
A Walmart logo sign is seen in Chicago, Illinois on August 3, 2026.
Marcin Golba | Null Photo | Getty Images
Rainey told CNBC that the company is eligible for about $2.9 billion in tariff refunds, but has yet to repay just under $100 million of that. Rainey said Walmart plans to use these funds to lower prices for consumers, with the impact expected to be felt in the third quarter.
He added that Walmart expects to experience more than $2 billion in “cost headwinds related to higher fuel prices this year.”
Walmart’s price-cutting efforts come as many shoppers are cutting back on spending due to high fuel and food costs. The company is typically well-positioned to weather economic downturns due to its reputation for value and size as the largest retailer in the United States.
Rainey said Walmart continues to face tight consumer demand, especially with rising gas prices. He added that they are reducing prices in all categories, including beef.
“But consumers are still very resilient in this environment because they are still spending and real wage growth is also maintaining its pace,” Rainey told CNBC. “That said, we hope to be able to lower prices even further and ease the strain on their wallets.”
Here’s how the company’s fiscal second quarter performance compared to Wall Street expectations, based on a survey of analysts by LSEG:
Earnings per share: Adjusted 81 cents, compared with expectations of 74 cents Revenue: $187.94 billion versus expected $186.77 billion
For the three months ended July 31, Walmart reported net income of $6.37 billion, or 80 cents per share, compared with $7.03 billion, or 88 cents per share, in the year-ago period. Excluding the impact of investment losses and including gains from so-called tax issues, Walmart reported adjusted earnings per share of 81 cents. Thanks in part to the benefit of customs duty rebates, the company’s gross profit margin increased to 25.4%.
Total revenue increased to $187.94 billion from $177.4 billion in the same period last year.
The results come as Walmart continues to see strong growth, driven by gains in areas such as pickup and delivery, third-party marketplaces and advertising. The discounter has gained market share among high-income customers in recent years by making shopping more convenient and adding perks to Walmart+ memberships. Amazon Major competitors.
Walmart announced that companywide membership fee revenue increased 17%, with Walmart+ net additions the highest in the second quarter. Sam’s Club US had net sales of $25.7 billion in the quarter, an increase of 8.8% year-over-year, as membership fees rose 6%.
Meanwhile, Walmart announced that its global advertising revenue increased by 38%.
In the United States, Walmart reported net sales of $125.2 billion, compared to $120.9 billion in the year-ago period. The company’s net sales internationally were $35.2 billion compared to $31.2 billion. The company announced that its global inventory increased by 6.7% during the quarter.
Rainey said a significant portion of its inventory is associated with more expensive and upscale brands, as Walmart believes the biggest factor in its market share growth is from higher-income consumers.
The grocery segment posted mid-single-digit growth in the quarter, while the health and wellness segment experienced a low-single-digit decline. Sales of general merchandise increased slightly due to strong sales of toys, fashion, furniture, and private brands.
