Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Walmart's fiscal 2027 second quarter (three months ended July 31, 2026) was defined by the receipt of approximately $2.9 billion in tariff refunds, which management recorded as a reduction to cost of sales. Management attributed the expansion in gross profit rate primarily to these refunds, partially offset by price investments and higher fuel costs, while eCommerce sales continued to grow at a double-digit pace. Operating income rose sharply, but consolidated net income declined as other gains and losses swung from a $2.7 billion gain a year ago to a $1.2 billion loss in the current quarter. The tension is that the tariff refund boost is one-time, and the company faces ongoing cost pressures from higher self-insured liability claims, depreciation, and healthcare benefit costs.
Revenue
$187.94B
+5.94% YoY
EPS (Diluted)
$0.80
-9.09% YoY
Operating Income
$9.38B
+28.78% YoY
Source: SEC XBRL
Walmart (WMT) reported Q2 FY2027 revenue of $187.94B, up 5.9% year over year. Operating margin was 5.0%, up 0.9 points from 4.1% a year earlier. WMT's fiscal Q2 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 0.81 | 0.75 | Beat +8.2% |
| Jun 2026 | 0.66 | 0.66 | Miss -0.6% |
| Mar 2026 | 0.74 | 0.73 | Beat +0.9% |
| Dec 2025 | 0.62 | 0.61 | Beat +2.2% |
Adjusted (non-GAAP) EPS of $0.81 versus the $0.75 analyst consensus — a +8.2% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.80.
3 reported segments · SEC XBRL
Segment revenue totals $187.93B, which is the $187.94B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure WMT itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Walmart received approximately $2.9 billion in tariff refunds during the quarter, recorded as a reduction to cost of sales; management said a significant portion was invested into customer-focused price initiatives.
Source: 10-Q Item 2 MD&A
Global eCommerce net sales grew $8.2 billion, or 23% year over year, primarily driven by store and club-fulfilled delivery and continued strength in Walmart+ and Sam's Club omnichannel offerings.
Source: 10-Q Item 2 MD&A
Operating expenses as a percentage of net sales rose 11 basis points for the quarter, driven by higher self-insured general liability claims expense, increased depreciation, and higher associate healthcare benefit costs; partly offset by lapping prior-year legal charges.
Source: 10-Q Item 2 MD&A
Other gains and losses swung from a net gain of $2.7 billion a year ago to a net loss of $1.2 billion, primarily due to fair-value changes in equity investments.
Source: 10-Q Item 2 MD&A
Free cash flow for the first half was $5.5 billion, down $1.4 billion year over year, as a $2.8 billion increase in capital expenditures to support omnichannel growth more than offset higher operating cash flow.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
Walmart operates in a dynamic tariff environment; less than one third of what it sells in the U.S. is imported, mainly from China, Vietnam, Mexico, India and Canada. Changes in tariffs, trade restrictions or the availability of tariff refunds could materially affect cost of goods, pricing and margins.
Source: 10-Q Item 1A Risk Factors
Inflation, currency fluctuations, unemployment, consumer confidence and fuel prices may impact Walmart's results. These factors could reduce consumer spending or increase costs, affecting sales and profitability.
Source: 10-Q Item 1A Risk Factors
Disruptions in supply chain, production and labor shortages, and increases in labor or commodity costs could affect product availability and costs. Walmart's inventory management and sourcing strategies may be pressured.
Source: 10-Q Item 1A Risk Factors
Cybersecurity events affecting Walmart could disrupt business and result in additional costs. Developments related to the deployment of artificial intelligence technologies also carry operational and compliance risks.
Source: 10-Q Item 1A Risk Factors
Walmart faces significant legal and regulatory proceedings including opioids litigation, False Claims Act, Asda Equal Value claims, money transfer agent services, driver platform matters, Mexico antitrust, foreign direct investment and India antitrust matters. Outcomes could materially affect financial condition.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 187.94 $B | 177.40 $B | +5.94% |
Cost of Revenue $B | 138.80 $B | 132.77 $B | +4.54% |
Operating Income $B | 9.38 $B | 7.29 $B | +28.78% |
Net Income $B | 6.37 $B | 7.03 $B | -9.39% |
EPS (Basic) $ | 0.80 $ | 0.88 $ | -9.09% |
EPS (Diluted) $ | 0.80 $ | 0.88 $ | -9.09% |
SG&A Expense $B | 39.75 $B | 37.35 $B | +6.44% |
Answers draw on this SEC filing and the data on this page
In Q1 FY2027, Walmart delivered 7.3% revenue growth and 18.8% net-income growth, supported by U.S. and international sales momentum and eCommerce growth, although operating-margin compression and higher capital expenditures drove free cash flow to negative $1.946B. Source: 10-Q Item 2 MD&A, pp.20-21
Walmart delivered solid FY2026 results with revenue rising 4.7% to $713.2B and net income surging 12.6% to $21.9B, driven by strong operating cash flow of $41.6B, even as SG&A cost pressures slightly compressed operating margins.
Other companies in Consumer Staples Merchandise Retail