Walmart raises FY26 guidance as Q2 revenue climbs 4.8% to $177.4bn

Walmart posted Q2 FY26 revenue of $177.4 billion, a 4.8% increase, driven by 25% global e-commerce growth and 4.6% US comparable sales growth, notably in grocery and health. Despite an 8.2% reported operating income decline due to discrete costs, the adjusted figure rose 0.4%, indicating underlying operational strength. Significantly, the company raised its FY26 net sales growth outlook to 3.75%-4.75% and adjusted EPS to $2.52-$2.62, reflecting confidence in its digital and operational momentum.

Analysis

Walmart's second-quarter results for fiscal year 2026 demonstrate robust top-line momentum, underpinned by a successful digital strategy. Revenue grew 4.8% to $177.4 billion, propelled by a significant 25% increase in global e-commerce sales and a 4.6% rise in U.S. comparable sales, with strength concentrated in the grocery and health and wellness sectors. While reported operating income declined 8.2% to $7.3 billion, this was explicitly due to discrete legal and restructuring costs. The underlying operational health appears stable, as adjusted operating income rose 0.4%, supported by strong sales and a slight expansion in gross margin to 24.5%. Management's confidence is reflected in the upwardly revised full-year guidance, with net sales growth now projected at 3.75% to 4.75% and adjusted EPS expected to be between $2.52 and $2.62, signaling a positive outlook on continued execution and consumer demand.

Key Decisions for Investors

• Investors should look past the headline 8.2% drop in reported operating income, as it was driven by one-off costs, and instead focus on the strong revenue growth and raised full-year guidance for sales and adjusted EPS as key indicators of the company's fundamental health.
• The 25% growth in global e-commerce highlights the success of Walmart's digital transformation; continued monitoring of this metric, alongside the performance of its marketplace and AI initiatives, is critical for assessing long-term growth potential.
• Given the company's demonstrated resilience in essential categories and positive forward guidance, long-term investors may consider any share price weakness related to the headline operating income figure as an opportunity to initiate or add to positions, viewing WMT as a core defensive holding with a strong digital growth component.