second quarter results |

Transcript

1. #1prepared remarks

   EX-99.1 2 earningsreleasefy27q2.htm EX-99.1

2. #2prepared remarks

   | | | | | BENTONVILLE, Ark., August 20, 2026 – Walmart Inc. (NASDAQ: WMT) announces second-quarter results with strong growth in revenue, including eCommerce, which grew 23% globally with strength across segments. Walmart U.S. comp sales 2 grew 2.6%, led by growth in transactions and includes 80 bps headwind from health & wellness. The Company issues guidance for the third quarter and raises its outlook for the fiscal year. For Q3, net sales are expected to grow 3.0% to 3.75% and adjusted operating income to grow 2.0% to 4.0%. Net sales for FY27 are expected to grow 4.0% to 5.0% and adjusted operating income to grow 7.0% to 8.5%, all in constant currency (“cc

3. #3prepared remarks

   Our team delivered another good quarter, and we continue to make steady progress on the long-term value drivers of our business. Our multi-year growth in eCommerce is evidence that customers are choosing Walmart because we deliver price, speed, and convenience across a broad assortment. At Walmart, they can have it all.” John Furner President and CEO, Walmart | | | | | | | | | | | | | | | | | | | | | | | Second Quarter Highlights | | | | | | • Revenue of $187.9 billion, up 5.9%, or 5.1% (cc) 1 • Global eCommerce sales grew 23%, led by store-fulfilled pickup & delivery and marketplace • Global advertising business 3 up 38%, with strength across segments. Walmart U.S. advertising up 38% • Membership fee revenue grew 17% globally • Gross profit rate up 96 bps, led by Walmart U.S., primarily impacted by tariff refund impacts noted below • Operating income up $2.1 billion, or 28.8%; up 17.4% adjusted (cc) 1 ; which includes the impact of tariff refunds received, partially offset by price investments in the quarter. Setting aside this net impact, underlying operating income growth was at the top end of our guidance. Our outlook reflects the continued prioritization of rem…

4. #4prepared remarks

   | | | | | | | | | | | | | | | | | | | | | | | | Key Financial Metrics Dollars in billions, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale. | | | | | | | | |

5. #5prepared remarks

   | | | | | | | | | | | | | | | Balance Sheet and Liquidity | • Cash and cash equivalents of $11.5 billion | • Total debt of $57.2 billion 2 | • Operating cash flow of $19.7 billion, an increase of $1.4 billion | • Free cash flow 1 of $5.5 billion, a decrease of $1.4 billion | • Repurchased 42.3 million shares YTD, or $5.1 billion 3 | • Inventory of $61.6 billion, an increase of $3.9 billion, or 6.7%, up 6.0% cc 4 | 1 See additional information at the end of this release regarding non-GAAP financial measures. 2 Debt includes short-term borrowings, long-term debt and finance lease obligations due within one year, and long-term debt and finance lease obligations. 3 $25.1 billion remaining of the $30 billion authorization approved in February 2026. 4 Inventory grew 6.7% on a reported basis and grew 6.0% in constant currency, excluding a ~$0.4 billion foreign currency impact. cc - constant currency |

6. #6prepared remarks

   | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Business Highlights and Strategic Initiatives Dollars in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding. | | | | | | | | | |

7. #7prepared remarks

   | | | | | | | | | | | | | | | | | | | | Walmart U.S. | Q2 FY27 | Q2 FY26 | Change | | | | | Net sales | $125.2 | $120.9 | $4.3 | 3.5% | | | | | | Comp sales (ex. fuel) 2 | 2.6% | 4.6% | NP | NP | | | | | | Transactions | 1.5% | 1.5% | NP | NP | | | | | | Average ticket | 1.1% | 3.1% | NP | NP | | | | | | eCommerce contribution to comp | ~510 bps | ~420 bps | NP | NP | | | | | | Operating income | $8.1 | $6.7 | $1.4 | 20.6% | | | | | | | | | | | | | | | |

8. #8prepared remarks

   Walmart U.S. • Sales reflected continued strong momentum in eCommerce and broad-based share gains, partially offset by 125 bps headwind to comp sales from pharmacy deflation related to new maximum fair price regulation (effective Jan 1) • eCommerce sales increased 24%, with strength in store-fulfilled delivery, advertising, and marketplace • Strong advertising growth continued, up 38% overall, including 43% increase in Walmart Connect (ex-VIZIO) • Gross profit grew 158 bps due to the benefit associated with tariff refunds and improved business mix; partially offset by price investments and higher fuel costs • Membership fee revenue grew double-digits as Walmart+ net adds reflected a record second quarter high • Operating expense deleveraged 72 bps due to higher claims expense, depreciation, and associate healthcare costs • Operating income up 20.6%, reflects higher gross profit, as noted above, and improved eCommerce economics • Inventory increased 6.3% due primarily to strategic initiatives and inflation

9. #9prepared remarks

   | | | | | | | | | | | | | | | | | | | | Walmart International | Q2 FY27 | Q2 FY26 | Change | | | | | Net sales | $35.2 | $31.2 | $4.0 | 12.8% | | | | | | Net sales (cc) 1 | $33.7 | $31.2 | $2.5 | 7.9% | | | | | | Operating income | $1.4 | $1.2 | $0.2 | 16.6% | | | | | | | | | | | | | | | | Operating income (cc) 1 | $1.3 | $1.2 | $0.1 | 5.7% | | | | | |

10. #10prepared remarks

    Walmart International • Growth in net sales (cc) 1 across markets, with momentum in eCommerce and stores ◦ Transaction counts and unit volumes up, contributing to growth across all categories • eCommerce sales up 19%, led by store-fulfilled pickup & delivery, with digital mix up across markets • Advertising business 3 grew 20%, led by Flipkart Ads • Operating income growth (cc) 1 benefited by lower losses in eCommerce and business mix changes • Currency rate fluctuations positively affected sales by $1.5 billion and operating income by $0.1 billion

11. #11prepared remarks

    1 See additional information at the end of this release regarding non-GAAP financial measures. 2 See Supplemental Financial Information for additional information. 3 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement.

12. #12prepared remarks

    NP - Not provided cc - constant currency

13. #13prepared remarks

    | | | | | | | | | | | | | | | | | | | | Sam’s Club U.S. | Q2 FY27 | Q2 FY26 | Change | | | | | Net sales | $25.7 | $23.6 | $2.1 | 8.8% | | | | | | Net sales (ex. fuel) | $22.1 | $21.2 | $1.0 | 4.5% | | | | | | Comp sales (ex. fuel) 1 | 4.4% | 5.9% | NP | NP | | | | | | Transactions | 7.0% | 3.9% | NP | NP | | | | | | Average ticket | -2.5% | 2.0% | NP | NP | | | | | | eCommerce contribution to comp | ~450 bps | ~350 bps | NP | NP | | | | | | Operating income | $0.7 | $0.5 | $0.2 | 44.3% | | | | | | Adjusted operating income 2 | $0.7 | $0.6 | $0.1 | 23.3% | | | | | |

14. #14prepared remarks

    Sam’s Club U.S. • Comp sales driven by increased transactions and total unit volumes with strength in grocery and general merchandise • eCommerce sales up 26% with continued strong growth in club-fulfilled pickup & delivery • Membership fee revenue grew 6% driven by steady growth in member counts and Plus penetration • Operating income growth reflects the benefit associated with tariff refunds and membership growth • Inventory up 8.0%, primarily related to higher fuel costs and volumes, including fuel upstreaming with a strategic partner

15. #15prepared remarks

    1 See Supplemental Financial Information for additional information. 2 See additional information at the end of this release regarding non-GAAP financial measures. NP - Not provided

16. #16prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Guidance | | | | | | | | | | | | | | | | | | | | | | | The following guidance reflects the Company’s expectations as of August 20, 2026.This guidance is subject to substantial risk and uncertainty that could cause actual results to differ materially from these expectations. These risks and uncertainties include, but are not limited to, the factors set forth below under the heading Forward-looking statements. Additionally, guidance is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company’s equity and other investments. Growth rates reflect an adjusted basis for prior year results.

17. #17John David Rainey · Walmart Inc

    Our business model is only getting stronger and more durable, and we’re pleased to raise our guidance for the year. For Q3 sales guidance, we expect a headwind of over 100bps to growth related to a timing shift of Flipkart’s Big Billion Days between Q3 and Q4. Our operating income outlook reflects the continued prioritization of tariff refunds received in Q2 into customer experience and price investments in the second half. For this reason, I encourage you to consider Q2 and Q3 performance together to assess the underlying growth of the business,

18. #18prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal year 2027 | | | | | | | | | | | | | The Company’s fiscal year guidance is based on the following FY26 figures: Net sales: $706.4 billion, adjusted operating income 1 : $31.0 billion, and adjusted EPS 1 : $2.64. | | | | | | | | | | | Consolidated metric | Original from 2.19.2026 | As of 5.21.2026 | As of 8.20.2026 | | | | | Net sales (cc) | Increase 3.5% to 4.5% | Unchanged | Increase 4.0% to 5.0% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Adj. operating income (cc) | Increase 6.0% to 8.0% | Unchanged | Increase 7.0% to 8.5% | | | | | Adj. Interest, net 2 | Increase approximately $200M to $300M | Unchanged | Unchanged | | | | | Effective tax rate | Approximately 23.5% to 24.5% | Unchanged | Unchanged | | | | | Adj. EPS | $2.75 to $2.85 | Unchanged | $2.80 to $2.87 | | | | | Capital expenditures | Approximately 3.5% of net sales | Unchanged | Approximately 4.0% of net sales | | | | | 1 For relevant non-GAAP reconciliations, see Q3 FY26 and Q4 FY26 earnings release furnished on Form 8-K on November 20, 2025 and February 19, 2026, respectively. 2 See add…

19. #19prepared remarks

    About Walmart Walmart Inc. (Nasdaq: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 280 million customers and members visit more than 10,900 stores and numerous eCommerce websites in 19 countries. With fiscal year 2026 revenue of $713 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X at x.com/walmart, and on LinkedIn at linkedin.com/company/walmart.

20. #20prepared remarks

    Investor Relations contact: Steph Wissink – ir@walmart.com Media Relations contact: Jennifer Rodriguez – press@walmart.com |

21. #21as defined in

    forward-looking statements

22. #22prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Walmart Inc. Condensed Consolidated Statements of Income (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | July 31, | | July 31, | (Amounts in millions, except per share data) | | 2026 | | 2025 | | Percent Change | | 2026 | | 2025 | | Percent Change | Revenues: | | | | | | | | | | | | | Net sales | | $ | 186,100 | | | $ | 175,750 | | | 5.9 | % | | $ | 361,784 | | | $ | 339,731 | | | 6.5 | % | Membership and other income | | 1,837 | | | 1,652 | | | 11.2 | % | | 3,904 | | | 3,280 | | | 19.0 | % | Total revenues | | 187,937 | | | 177,402 | | | 5.9 | % | | 365,688 | | | 343,011 | | | 6.6 | % | Costs and expenses: | | | | | | | | | | | | | Cost of sales | | 138,804 | | | 132,771 | | | 4.5 | % | | 271,862 | | | 257,074 | | | 5.8 | % | Operating, selling, general and administrative expenses | | 39,750 | | | 37,345 | | | 6.4 | % | | 76,950 | | | 71,516 | | | 7.6 | % | Operating income | | 9,383 | | | 7,286 | | | 28.8 | % | | 16,876 | | | 14,421 | | | 17.0 | % | Interest: | | | | | | | | | | | | | Debt |…

23. #23prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Walmart Inc. Condensed Consolidated Balance Sheets (Unaudited) | | | | | | | | | |

24. #24prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | July 31, | | January 31, | | July 31, | (Amounts in millions) | | 2026 | | 2026 | | 2025 | ASSETS | | | | | | | Current assets: | | | | | | | Cash and cash equivalents | | $ | 11,529 | | | $ | 10,727 | | | $ | 9,431 | | Receivables, net | | 11,075 | | | 11,172 | | | 10,518 | | Inventories | | 61,600 | | | 58,851 | | | 57,729 | | Prepaid expenses and other | | 4,499 | | | 4,124 | | | 4,355 | | | | | | | | | Total current assets | | 88,703 | | | 84,874 | | | 82,033 | | | | | | | | | | | | | | | | | | | | | | | Property and equipment, net | | 142,482 | | | 136,083 | | | 125,476 | | Operating lease right-of-use assets | | 15,650 | | | 14,750 | | | 13,953 | | Finance lease right-of-use assets, net | | 6,178 | | | 6,123 | | | 6,128 | | Goodwill | | 28,260 | | | 28,735 | | | 29,060 | | Other long-term assets | | 12,641 | | | 14,103 | | | 14,187 | | Total assets | | $ | 293,914 | | | $ | 284,668 | | | $ | 270,837 | | | | | | | | | LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS’ EQUITY | | | | | | | Current liabilities: | | | | | | | Short-term borrowings | | $ | 10,479 | | | $ | 6,596 | | | $ | 3,837 |…

25. #25prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Walmart Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) | | | | | | | | | |

26. #26prepared remarks

    | | | | | | | | | | | | | | | | | Six Months Ended | | | July 31, | (Amounts in millions) | | 2026 | | 2025 | Cash flows from operating activities: | | | | | Consolidated net income | | $ | 12,019 | | | $ | 11,790 | | | | | | | | | | | | Adjustments to reconcile consolidated net income to net cash provided by operating activities: | | | | | Depreciation and amortization | | 7,746 | | | 6,856 | | Investment (gains) and losses, net | | 947 | | | (2,066) | | | | | | | | | | | | Deferred income taxes | | 845 | | | 1,551 | | | | | | | Other operating activities | | 816 | | | 1,370 | | Changes in certain assets and liabilities, net of effects of acquisitions and dispositions: | | | | | Receivables, net | | 9 | | | (405) | | Inventories | | (2,660) | | | (659) | | Accounts payable | | 1,648 | | | 1,302 | | Accrued liabilities | | (1,449) | | | (1,453) | | Accrued income taxes | | (211) | | | 66 | | Net cash provided by operating activities | | 19,710 | | | 18,352 | | | | | | | Cash flows from investing activities: | | | | | Payments for property and equipment | | (14,181) | | | (11,409) | | Proceeds from the disposal of property and equipment | | 124 | | | 41 | …

27. #27prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Walmart Inc. Supplemental Financial Information (Unaudited) | | | | | | | | | |

28. #28prepared remarks

    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Segment information | Three Months Ended | | Six Months Ended | July 31, | | July 31, | (dollars in millions) | 2026 | 2025 | | | 2026 | 2025 | | Walmart U.S. | $ | % of Net Sales 1 | $ | % of Net Sales 1 | % Chg | | $ | % of Net Sales 1 | $ | % of Net Sales 1 | % Chg | Net sales | $ | 125,189 | | NP | $ | 120,911 | | NP | 3.5 | % | | $ | 242,358 | | NP | $ | 233,074 | | NP | 4.0 | % | Membership and other income 2 | 750 | | NP | 649 | | NP | 15.6 | % | | 1,676 | | NP | 1,285 | | NP | 30.4 | % | Gross profit 3 | 36,838 | | 29.4 | % | 33,674 | | 27.9 | % | 9.4 | % | | 69,367 | | 28.6 | % | 64,485 | | 27.7 | % | 7.6 | % | Operating expenses 3 | 29,468 | | 23.5 | % | 27,591 | | 22.8 | % | 6.8 | % | | 57,026 | | 23.5 | % | 53,342 | | 22.9 | % | 6.9 | % | Operating income | 8,120 | | 6.5 | % | $ | 6,732 | | 5.6% | 20.6 | % | | $ | 14,017 | | 5.8 | % | $ | 12,428 | | 5.3 | % | 12.8 | % | Adjusted operating income 4 | 8,120 | | 6.5 | % | $ | 6,732 | | 5.6% | 20.6 | % | | $ | 14,143 | | 5.8 | % | $ | 12,428 | | 5.3 | % | 13.8 | % | | | | | | | | | | | | | Walmart International | | | | | | | | | | …

29. #29prepared remarks

    1 Corporate and support shown as percentage of consolidated net sales. 2 Membership and other income includes membership fees and other items such as rental and tenant income, recycling income, gift card breakage income, as well as other income from corporate campus facilities and miscellaneous items. 3 Gross profit defined as net sales less cost of sales. Operating expenses refers to operating, selling, general and administrative expenses. 4 See additional information at the end of the release regarding non-GAAP financial measures. NP - Not provided 11

30. #30prepared remarks

    U.S. comparable sales results | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | With Fuel | | Without Fuel | | Fuel Impact | | | 13 Weeks Ended | | 13 Weeks Ended | | 13 Weeks Ended | | 13 Weeks Ended | | 13 Weeks Ended | | 13 Weeks Ended | | | 7/31/2026 | | 8/1/2025 | | 7/31/2026 | | 8/1/2025 | | 7/31/2026 | | 8/1/2025 | Walmart U.S. | | 3.1% | | 4.5% | | 2.6% | | 4.6% | | 0.5% | | (0.1%) | Sam’s Club U.S. | | 8.5% | | 3.3% | | 4.4% | | 5.9% | | 4.1% | | (2.6%) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |