Walmart (WMT) reported fiscal Q2 2027 earnings on August 20, 2026, for the quarter ended July 31, 2026: revenue of $187.9 billion, up 5.9% (5.1% in constant currency), operating income of $9.4 billion, up 28.8%, GAAP earnings per share of $0.80, and adjusted EPS of $0.81 [1]. The company raised its full-year outlook to adjusted EPS of $2.80 to $2.87, yet the stock fell 9.2% to $103.84 on the day of the report and closed at $106.73 on September 18, 2026 [1][2]. This Walmart fiscal Q2 2027 earnings recap explains what the company reported, why the shares dropped despite a beat-and-raise quarter, and what the valuation looks like now.
Walmart fiscal Q2 2027 earnings: what the company reported
Growth came from digital channels and higher-margin services rather than from store traffic alone. Global eCommerce sales rose 23%, the global advertising business grew 38%, and membership fee revenue grew 17% [1]. Walmart U.S. net sales rose 3.5% to $125.2 billion, with comparable sales excluding fuel up 2.6% on transaction growth of 1.5% and average ticket growth of 1.1%; eCommerce contributed about 510 basis points to the comp, and the company cited an 80 basis point headwind from health and wellness [1]. Walmart U.S. eCommerce rose 24% and advertising rose 38%, including a 43% increase at Walmart Connect excluding VIZIO [1]. Walmart International net sales rose 12.8% to $35.2 billion (7.9% in constant currency), and Sam's Club U.S. net sales rose 8.8% to $25.7 billion with comparable sales excluding fuel up 4.4% [1].
| Metric | Fiscal Q2 2027 | Change |
|---|---|---|
| Total revenue | $187.9 billion | Up 5.9% (5.1% constant currency) |
| Walmart U.S. net sales | $125.2 billion | Up 3.5%; comp sales up 2.6% |
| Walmart International net sales | $35.2 billion | Up 12.8% (7.9% constant currency) |
| Sam's Club U.S. net sales | $25.7 billion | Up 8.8%; comp sales up 4.4% |
| Operating income | $9.4 billion | Up 28.8% (17.4% adjusted, constant currency) |
| GAAP EPS / adjusted EPS | $0.80 / $0.81 | n/a |
Tariff refunds, margins, and the balance sheet
The gross profit rate rose 96 basis points, led by Walmart U.S., where gross profit improved 158 basis points on tariff refunds and business mix, partly offset by price investments and higher fuel costs [1]. Walmart U.S. operating income rose 20.6% to $8.1 billion, International rose 16.6% to $1.4 billion, and Sam's Club rose 44.3% to $0.7 billion [1]. Consolidated net income was $6.5 billion, down 8.7%, because of losses on equity and other investments; adjusted EPS of $0.81 excludes a $0.12 net loss on those investments and a $0.11 net benefit from a tax matter [1]. Year to date, operating cash flow was $19.7 billion, up $1.4 billion, and free cash flow was $5.5 billion, down $1.4 billion on higher capital spending [1]. The company repurchased 42.3 million shares for $5.1 billion year to date, with $25.1 billion remaining on its $30 billion authorization, and held $11.5 billion of cash against $57.2 billion of total debt [1]. Inventory rose 6.7% to $61.6 billion [1].
Why Walmart stock fell after a raised outlook
The answer is in the third-quarter guide and in what management plans to do with the tariff refunds. For fiscal Q3 Walmart expects net sales growth of 3.0% to 3.75% in constant currency, adjusted operating income growth of only 2.0% to 4.0%, and adjusted EPS of $0.62 to $0.64 [1]. The company said its outlook reflects the continued prioritization of tariff refunds received in Q2 into customer experience and price investments in the second half, and it flagged a headwind of more than 100 basis points to Q3 sales growth from a timing shift of Flipkart's Big Billion Days event between Q3 and Q4 [1]. In other words, the second-quarter operating income beat was partly a refund that will be given back to customers as lower prices. DataPorium's stock market data shows WMT closing at $114.30 on August 19 and falling 9.2% to $103.84 on August 20 on volume of about 84 million shares, roughly 2.4 times the prior day [2]. The stock closed at $106.73 on September 18, 2026, about 6.6% below the pre-report level and about 20% below its May 19 close of $134.20 [2].
Updated fiscal 2027 guidance
The full-year outlook still moved up. Walmart now expects constant currency net sales growth of 4.0% to 5.0%, adjusted operating income growth of 7.0% to 8.5%, and adjusted EPS of $2.80 to $2.87 [1]. Management said the business model is getting stronger and more durable and that investors should consider Q2 and Q3 together to assess underlying growth, since the refund benefit and the price reinvestment fall in different quarters [1].
Walmart valuation after the report
Net income of $6.5 billion and GAAP EPS of $0.80 imply roughly 8.1 billion shares, which at $106.73 gives a market value near $865 billion [1][2]. At the $2.835 midpoint of the adjusted EPS guidance range, the stock trades at about 38 times forward earnings [1][2]. That is a multiple normally associated with technology companies, and it explains the sharp reaction to a modest Q3 guide: at 38 times earnings, a quarter of 2% to 4% operating income growth is a problem even if the full-year number rises. The bull case is that eCommerce, advertising, and membership are compounding at 17% to 38% and carry higher margins than the store business, so the mix shift can sustain high-single-digit profit growth for years. The bear case is that a retailer growing sales 4% to 5% and reinvesting windfalls into price does not deserve a premium of that size. Investors may consider that the 20% decline since May has already removed part of that premium.
- Positives: eCommerce up 23%, advertising up 38%, membership fees up 17%, full-year EPS guidance raised [1].
- Cautions: Q3 adjusted operating income growth guided to only 2% to 4%, tariff refunds being reinvested in price, free cash flow down $1.4 billion [1].
- Valuation: about 38 times the midpoint of fiscal 2027 adjusted EPS guidance at $106.73 [1][2].
What to watch next
The fiscal Q3 report is listed for November 19, 2026, on DataPorium's markets calendar [3]. Investors may consider watching whether Walmart U.S. comps hold near 2.6% as price investments take effect, whether advertising and membership keep growing at double-digit rates, and whether the gross profit rate gives back the refund benefit as management has signaled. The Flipkart event timing will make the Q3 and Q4 sales figures noisy, so the combined second-half numbers will matter more than either quarter alone.
Walmart's fiscal Q2 2027 quarter beat on revenue and profit and raised the year, but the 9% drop showed that a stock at 38 times earnings cannot absorb a quarter of 2% to 4% operating income growth.
Key takeaways
- Fiscal Q2 2027 revenue rose 5.9% to $187.9 billion, operating income rose 28.8% to $9.4 billion, and adjusted EPS was $0.81 [1].
- Global eCommerce grew 23%, advertising grew 38%, and membership fee revenue grew 17% [1].
- Fiscal 2027 adjusted EPS guidance was raised to $2.80 to $2.87, but Q3 adjusted operating income growth was guided to 2% to 4% as tariff refunds are reinvested in price [1].
- WMT fell 9.2% to $103.84 on August 20 and closed at $106.73 on September 18, 2026, about 38 times forward adjusted EPS [1][2].
- The fiscal Q3 report is scheduled for November 19, 2026 [3].
Frequently asked questions
What were Walmart's fiscal Q2 2027 earnings?
Walmart reported revenue of $187.9 billion, up 5.9%, operating income of $9.4 billion, up 28.8%, GAAP EPS of $0.80, and adjusted EPS of $0.81 for the quarter ended July 31, 2026 [1].
Why did Walmart stock drop after the August 2026 earnings report?
WMT fell 9.2% on August 20, 2026, after the company guided fiscal Q3 adjusted operating income growth of only 2% to 4% and said it would reinvest tariff refunds into lower prices [1][2].
What is Walmart's fiscal 2027 guidance?
Walmart expects constant currency net sales growth of 4.0% to 5.0%, adjusted operating income growth of 7.0% to 8.5%, and adjusted EPS of $2.80 to $2.87 for fiscal 2027 [1].
How fast is Walmart's eCommerce business growing?
Global eCommerce sales grew 23% in fiscal Q2 2027, with Walmart U.S. eCommerce up 24% and Sam's Club U.S. eCommerce up 26% [1].
