Walmart Inc. posted a good financial performance in the second quarter of the 2026 financial year, with revenue increasing by 4.8% to $177.4 billion. Walmart’s revenue increased by 5.6% on a constant currency basis. The company saw a 25% growth in global eCommerce sales, which indicates a greater use of its store-fulfillment delivery services and marketplaces.
Despite revenue gains, operating income declined 8.2% to $7.3 billion, which the company attributed to legal and restructuring expenses. Adjusted for constant currency, operating income rose marginally by 0.4%. Walmart’s earnings per share came in at $0.88 on a GAAP basis, while adjusted EPS stood at $0.68.
In the United States, comparable store sales rose 4.6%, driven by consistent demand for grocery and health and wellness items. Grocery sales advanced by mid-single digits, while the health and wellness category grew by a mid-teens percentage. Around 60% of Walmart’s US sales continue to come from groceries, a largely tariff-exempt category.
US eCommerce revenue expanded 26%, with store-fulfilled delivery channels recording nearly 50% growth. Walmart’s global advertising business also delivered strong momentum, rising 46% overall, including a 31% increase in Walmart Connect within the US.
Internationally, Walmart’s net sales grew by 5.5% and rose by 10.5% on a constant currency basis. China, Mexico, and Flipkart made substantial contributions. Operating income in the international segment decreased 9.8% as the company invested strategically in India, Canada, and Mexico to help fuel its long-term growth.
Walmart continued to strengthen its financial position during the quarter. Operating cash flow increased by $2.0 billion to $18.4 billion, while free cash flow rose $1.1 billion to $6.9 billion. The company is also going strong on share repurchases ( totaling 67.4 million shares, or $6.2 billion through November), which it is reporting with $9.4 billion in cash and cash equivalents versus its total debt of $50.3 billion.
Looking ahead, Walmart raised its sales guidance for fiscal year 2026. It now expects net sales to grow between 3.75% and 4.75%, with adjusted earnings per share projected at $2.52 to $2.62. For the third quarter, Walmart anticipates revenue growth in the range of 3.75% to 4.75% and operating income growth of 3.0% to 6.0% on a constant currency basis.
President and CEO of Walmart, Doug McMillon, said the company remains focused on innovation and digital transformation, highlighting the role of AI and new technology in enhancing customer experience. Walmart stated that customer behavior has remained consistent, particularly in essential categories, providing stability in a changing retail environment.
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