Observed Signal · Aug 28, 2026 · earnings · Source: SEC API · Impact: 4.5/5
10-Q Financial Filing Analysis for Walmart (2026-08-28)
Walmart Inc. reported solid financial results for the second fiscal quarter ended July 31, 2026, with total revenues rising 5.9% year-over-year to $187.94 billion and operating income increasing 28.8% to $9.38 billion. Consolidated net income attributable to Walmart was $6.37 billion ($0.80 per diluted share), down 9.4% YoY primarily due to $1.20 billion in net unrealized losses on equity and debt investments compared to $2.71 billion in gains in the prior-year period. Operational performance was bolstered by robust omnichannel growth, store-fulfilled delivery, and a $2.9 billion IEEPA tariff refund recognized as a reduction to cost of sales. Walmart continued its disciplined capital allocation, repurchasing $5.10 billion in common stock and generating $19.71 billion in operating cash flow for the first six months.
As the world's largest retailer, Walmart's strong top-line momentum, 23% eCommerce growth, and strategic management of margin pressures underscore durable consumer spending and resilience in omnichannel retail execution.
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Key Takeaways & Evidence Grounding
- Total revenue reached $187.94 billion for Q2 FY2027 (up 5.9% YoY), driven by 3.3% Walmart U.S. comp sales and a 23% increase in global eCommerce sales.
- Operating income surged 28.8% to $9.38 billion, aided by a $2.9 billion IEEPA tariff refund credited to cost of sales, partially offset by price investments and higher associate healthcare and self-insurance costs.
- Walmart generated $19.71 billion in operating cash flow and $5.53 billion in free cash flow in H1 FY2027, while returning capital via $5.10 billion in share repurchases and declaring $0.99 per share in annual dividends.
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Walmart Raises Guidance After Strong Q2 FY27
Walmart reported a strong second quarter of fiscal 2027, driven by robust e-commerce growth, expanding advertising revenue and higher membership income, and raised its full-year outlook. Quarterly revenue increased to $187.9 billion (up 5.9% year-over-year; +5.1% constant currency), global e-commerce rose 23%, and advertising revenue grew 38% company-wide. Operating income improved 28.8% to $9.4 billion and adjusted EPS was $0.81. The company now expects full-year constant-currency revenue growth of 4–5% and adjusted operating income growth of 7–8.5%, and provided Q3 revenue and adjusted EPS guidance. Management plans continued investments in prices and customer experience to support competitive positioning.
Walmart stores evolve as e‑commerce grows
Walmart reported stronger e-commerce growth and rising transactions in its U.S. business during fiscal Q2, with e-commerce sales up 24% and now accounting for over 23% of Walmart U.S. mix, CFO John David Rainey said on the earnings call. Walmart U.S. comparable sales grew 2.6% (3.4% excluding health and wellness), while Walmart Inc. revenue rose 5.9% year-over-year to $187.9 billion and operating income increased 28.8% to $9.4 billion. The company said tariff refunds (about $2.9 billion expected) and drug pricing regulation affected results, and raised fiscal 2027 net sales guidance to a 4%–5% range.
Walmart Ad Revenue Rises 37% in Q1
Walmart reported a 37% increase in global advertising revenue in the first quarter, alongside broader retail growth. Total company revenue was $177.8 billion (up 7.3% year-over-year), ecommerce sales rose 26% YoY, and Walmart’s U.S. third-party marketplace sales grew 50% in Q1. The retailer said weekly usage of its AI shopping assistant Sparky more than doubled during the quarter. CEO John Furner highlighted increasing shopper use of Sparky as a growth driver. The report underscores continued momentum for Walmart’s retail-media and commerce businesses amid strong consumer spending trends.
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