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Walmart Inc. (NYSE: WMT) reported robust second-quarter results, showcasing significant growth across various segments. The retail giant achieved a consolidated revenue of $169.3 billion, marking a 4.8% increase from the previous year. This growth was bolstered by a 21% surge in global eCommerce sales and a notable 26% rise in its global advertising business, with Walmart Connect in the U.S. experiencing a 30% increase. Walmart U.S. comp sales grew by 4.2%, reflecting the company’s strong foothold in the domestic market.

Operating income for the quarter was $7.94 billion, an 8.5% increase from the same period last year. Adjusted operating income saw a 7.2% rise, driven by higher gross margins and growth in membership income. The company’s gross margin rate improved by 43 basis points, with significant contributions from both Walmart U.S. and Walmart International. Additionally, Walmart’s inventory levels decreased by 2.0%, indicating efficient inventory management while maintaining healthy in-stock levels.

The company’s GAAP EPS for the quarter stood at $0.56, while the adjusted EPS was $0.67, surpassing market expectations. This performance underscores Walmart’s ability to adapt and thrive in a dynamic retail environment, leveraging its eCommerce platforms and diversified business model to drive growth and profitability.

Walmart Reports Better than Expected Results in Fiscal 2025 Q2

Walmart’s performance in the second quarter exceeded market expectations, with the company delivering an adjusted EPS of $0.67, compared to the anticipated $0.64. This outperformance was primarily driven by strong revenue growth and improved operating margins. The company’s consolidated revenue of $169.3 billion also surpassed the expected $168.52 billion, reflecting a 4.8% year-over-year increase.

The robust growth in eCommerce and the global advertising business played a pivotal role in exceeding expectations. eCommerce sales were up 21% globally, with store-fulfilled pickup and delivery and marketplace leading the charge. The advertising segment, particularly Walmart Connect in the U.S., grew by 30%, further enhancing the company’s revenue streams. These results highlight Walmart’s strategic focus on expanding its digital footprint and leveraging new business avenues to drive growth.

Walmart U.S. comp sales growth of 4.2% also contributed to the strong performance, as the company’s value-convenience proposition continued to resonate with customers. The company gained market share across various income cohorts, primarily driven by upper-income households. This broad-based growth across different segments and geographies underscores Walmart’s resilience and adaptability in a competitive retail landscape.

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Walmart Expects Net Sales to Grow Between 3.25% and 4.25% in Fiscal Q3

Walmart has issued optimistic guidance for the third quarter and the full fiscal year 2025. For Q3, the company expects net sales to grow between 3.25% and 4.25% in constant currency terms, with operating income projected to increase by 3.0% to 4.5%. Adjusted EPS for the third quarter is anticipated to be in the range of $0.51 to $0.52. This guidance reflects the company’s confidence in sustaining its growth momentum through the upcoming quarter.

For the full fiscal year 2025, Walmart has raised its outlook, now expecting net sales to grow between 3.75% and 4.75% in constant currency terms, up from the previous guidance of 3.0% to 4.0%. Adjusted operating income is projected to grow between 6.5% and 8.0%, compared to the earlier forecast of 4.0% to 6.0%. The adjusted EPS for FY25 is expected to be in the range of $2.35 to $2.43, reflecting an upward revision from the previous guidance of $2.23 to $2.37.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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