Companies / Results
Walmart raised its outlook as ecommerce and advertising grew, but tariff refunds lifted the quarter.
Digital businesses expanded faster than company sales; the reported margin and guidance still carry a temporary refund benefit.
Sources
Walmart fiscal 2027 second-quarter earnings release furnished with Form 8-K on August 20, 2026.
Walmart reported $187.937 billion of revenue for the thirteen weeks ended July 31, 2026, up 5.9% year over year. Operating income increased 28.8% to $9.383 billion, while diluted EPS declined to $0.80 from $0.88.
Global ecommerce sales increased 23%, advertising increased 38% and membership-fee revenue increased 17%. Walmart U.S. comparable sales excluding fuel increased 2.6%. The company received nearly $2.9 billion of IEEPA tariff refunds and said the net benefit added roughly 750 basis points to adjusted constant-currency operating-income growth. It raised its fiscal 2027 outlook to 4–5% net-sales growth, 7–8.5% adjusted operating-income growth and adjusted EPS of $2.80–$2.87.
The digital lines are growing from different bases and are not interchangeable with consolidated sales. Ecommerce measures transactions through digital channels, advertising is a higher-margin service sold to suppliers and membership fees are recurring revenue. Together they help explain why operating income grew faster than the top line.
The quarter also contains material policy-driven noise. Walmart received nearly $2.9 billion of IEEPA tariff refunds and said the net benefit contributed roughly 750 basis points to adjusted constant-currency operating-income growth. It planned to reinvest remaining refunds in price, which would weigh on the following quarter. Adjusted EPS also excludes a $0.12 investment loss and includes an adjustment for a $0.11 tax benefit.
The raised guidance is management’s view as of August 20. It does not turn the refund into a recurring margin source. The more durable question is whether ecommerce, advertising and membership can continue to improve the mix after refund effects and reinvestment move through the statements.
Fast-growing lines can matter beyond their sales share
Advertising and membership fees can carry different economics from retail merchandise. Their growth can help operating profit rise faster than total revenue even when store sales grow more slowly.
Refunds and adjustments change the quarter-to-quarter bridge
Operating momentum is visible, but the tariff-refund benefit, planned price reinvestment, investment loss and tax benefit should remain attached to any forward margin comparison.
What we do not know
The filing does not establish the recurring margin contribution of advertising or membership, or the exact timing of refund reinvestment. This article does not forecast comparable sales or the share price.
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