Walmart's Q2 FY26 Financial Results

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2025.08.21 11:05
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Walmart Inc. reported its Q2 FY26 results, showing a 4.8% revenue growth to $177.4 billion, with a 25% surge in global eCommerce sales. Operating income fell 8.2% to $7.3 billion. The U.S. segment saw a 4.6% increase in comparable sales, while international sales rose 5.5%. Walmart's cash and equivalents totaled $9.4 billion, with total debt at $50.3 billion. The company anticipates Q3 net sales growth of 3.75% to 4.75% and has raised its FY26 net sales growth outlook to 3.75% to 4.75%.

Walmart Inc. has released its second-quarter results for fiscal year 2026, showcasing a robust performance across various segments. The company, known for its extensive retail operations, reported significant growth in revenue and eCommerce sales, despite facing some operational challenges.

Financial Highlights

For the second quarter, Walmart reported a revenue growth of 4.8%, reaching $177.4 billion. On a constant currency basis, this growth was 5.6%. The company's operating income decreased by 8.2% to $7.3 billion, although it saw a slight increase of 0.4% when adjusted for constant currency. Global eCommerce sales surged by 25%, contributing significantly to the overall revenue. The GAAP EPS stood at $0.88, while the adjusted EPS was $0.68.

Business and Operational Highlights

Walmart's U.S. segment reported a 4.6% increase in comparable sales, driven by strong performance in grocery and health & wellness categories. The eCommerce segment in the U.S. grew by 26%, with store-fulfilled delivery channels showing nearly 50% growth. The global advertising business also saw a 46% increase, with Walmart Connect in the U.S. up by 31%.

Internationally, Walmart experienced a 5.5% increase in net sales, with a 10.5% rise on a constant currency basis. This growth was led by markets such as China, Walmex, and Flipkart. However, the operating income for the international segment declined by 9.8%, primarily due to strategic growth investments in India, Canada, and Mexico.

Strategic Initiatives and Corporate Developments

Walmart has been actively managing its balance sheet and liquidity. The company reported cash and cash equivalents of $9.4 billion and total debt of $50.3 billion. Operating cash flow increased by $2.0 billion to $18.4 billion, and free cash flow rose by $1.1 billion to $6.9 billion. Additionally, Walmart repurchased 67.4 million shares year-to-date, amounting to $6.2 billion.

Management's Perspective

Doug McMillon, President and CEO of Walmart, emphasized the company's focus on innovation and execution. He highlighted the role of digital experiences and AI in driving business growth and improving customer engagement. McMillon expressed confidence in the company's ability to connect with customers through its people-led and tech-powered approach.

Future Outlook

Looking ahead, Walmart has issued guidance for the third quarter, expecting net sales to increase by 3.75% to 4.75% and operating income to rise by 3.0% to 6.0%, both on a constant currency basis. For the fiscal year 2026, the company has raised its outlook for net sales growth to 3.75% to 4.75% and adjusted EPS to $2.52 to $2.62. The adjusted operating income guidance remains unchanged at 3.5% to 5.5%.

SEC Filing: Walmart Inc. [ WMT ] - 8-K - Aug. 21, 2025

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