Robust Top-Line Growth
Revenue grew 7.3% YoY to $177.8B in Q2 FY2026 (vs. $165.6B in Q2 FY2025), reflecting continued strength across Walmart's retail and e-commerce segments. This broad-based growth demonstrates the company's ability to attract value-seeking consumers in a still-uncertain macroeconomic environment.
Net Income Outpaced Revenue Growth
Net income jumped 18.8% YoY to $5.33B (vs. $4.49B), with diluted EPS rising 19.6% to $0.67. The outsized earnings growth relative to revenue suggests improved operational leverage and/or favorable below-the-line items such as reduced interest expense or improved equity income from international operations.
SG&A Expense Pressure
Selling, General & Administrative (SG&A) expenses rose 8.9% YoY to $37.2B, outpacing revenue growth of 7.3%. This faster growth in operating costs contributed to a slight compression in operating margin from 4.31% to 4.22%, signaling ongoing investment in workforce, technology, and fulfillment infrastructure.