Walmart earnings estimates rise after a strong Q2 beat. See the EPS, revenue, valuation and guidance details shaping WMT stock now.
Walmart earnings estimates have become a bigger talking point after the retailer's second quarter fiscal 2027 results cleared Wall Street's bar on both sales and profit, giving investors fresh numbers to weigh against where the stock trades today and what management now expects for the rest of the year.
Walmart posted adjusted earnings of 81 cents per share for the quarter, up 19.1% from 68 cents a year earlier and well ahead of the Zacks Consensus Estimate of 73 cents. Reported earnings per share came in at 80 cents, down from 88 cents in the prior year period, a gap that reflects one time items rather than a weaker underlying business. Revenue climbed 5.9% year over year to $187.9 billion, topping the consensus call of $186.3 billion, with net sales up 5% on a constant currency basis across every division.
Where the Growth Came From
E-commerce sales jumped 23% globally, powered by store fulfilled pickup and delivery along with an expanding third party marketplace. Advertising revenue rose 38% worldwide and by the same margin in the United States, while global membership fee income climbed 17%. The gross profit rate improved 96 basis points to 25.4%, helped by tariff refunds in the U.S. business and a richer mix from advertising, though price cuts and higher fuel costs in distribution ate into some of that gain. Adjusted operating income at constant currency rose 17.4% to $9.25 billion.
Walmart U.S., the company's largest segment, grew net sales 3.5% to $125.2 billion, with comparable sales excluding fuel up 2.6% on a mix of more transactions and slightly bigger baskets. E commerce alone added about 510 basis points to that comp figure, and marketplace sales surged nearly 52%. Operating income for the segment jumped 20.6% to $8.1 billion. Walmart International grew net sales 12.8% to $35.2 billion, with China standing out at 20.7% constant currency growth, while Sam's Club U.S. saw net sales rise 8.8% to $25.7 billion on a 7% increase in transactions.
Valuation, Momentum and Yield: What Walmart's Numbers Say Now
Investors weighing Walmart shares are looking at a stock with a market capitalization in the neighborhood of $770 billion, trading within a 52 week range that has stretched from roughly $66 to $105 as the shares have marched higher over the past year. The stock carries a price to earnings ratio near 40 based on trailing GAAP earnings per share, a premium that reflects steady execution rather than explosive growth. The dividend yield sits below 1%, modest by retail standards but backed by a company that has raised its payout for decades and continues buying back stock, spending $3 billion in the quarter on 25.7 million shares at an average price of $117.61.
Momentum readings on Walmart have cooled somewhat after a long run higher, with the relative strength index sitting in a neutral to slightly elevated zone rather than deep overbought territory, suggesting the stock has room to move in either direction without an immediate technical trigger. Shares gained 3.5% over the past month, roughly in line with the 3.3% advance in the broader industry group, and Walmart currently carries a Zacks Rank of 3, or Hold.
The bull case rests on consistent share gains in grocery, a fast growing advertising arm that carries high margins, and membership income that keeps compounding as Walmart+ and Sam's Club Plus add subscribers. Management's decision to raise full year guidance, rather than simply reaffirm it, adds weight to that argument. The bear case centers on valuation: a stock trading near 40 times earnings leaves little room for error, and continued price investments meant to keep customers loyal could pressure margins if tariff refunds fade or fuel and logistics costs climb further.
What Walmart Told Investors About the Third Quarter and Full Year
For the third quarter of fiscal 2027, Walmart guided to net sales growth of 3% to 3.75% at constant currency and operating income growth of 2% to 4%, with adjusted earnings per share expected between 62 and 64 cents. For the full fiscal year, management now expects net sales growth of 4% to 5%, up from a prior forecast of 3.5% to 4.5%, and adjusted operating income growth of 7% to 8.5%, better than the previous range of 6% to 8%. Full year adjusted earnings per share guidance moved up to $2.80 to $2.87, from $2.75 to $2.85 previously.
That upward revision is the clearest signal management has sent this year about confidence in the business, and it will likely anchor how analysts recalibrate their own walmart earnings estimates heading into the holiday shopping season. Peers in retail, including Macy's, Dillard's and Urban Outfitters, have posted their own earnings surprises this year, but none carry Walmart's scale in grocery, membership and advertising combined.
Frequently Asked Questions
Will Walmart beat earnings?
Walmart already beat both revenue and adjusted earnings estimates for the second quarter of fiscal 2027, posting adjusted EPS of 81 cents against a consensus estimate of 73 cents. Whether it beats again next quarter will depend on holiday demand and cost trends not yet reported.
Does Walmart get paid every 2 weeks?
Walmart reports its financial results quarterly to investors, not every two weeks. Hourly associates at Walmart are typically paid on a biweekly schedule, but that pay cycle is separate from the company's quarterly earnings reporting calendar.
Is Walmart expected to beat earnings?
For the third quarter of fiscal 2027, Walmart has guided adjusted earnings per share to a range of 62 to 64 cents, and analysts will measure actual results against that guidance and their own consensus estimate when the quarter closes.
Will Walmart beat earnings estimates?
Walmart's raised full year guidance, now calling for adjusted EPS of $2.80 to $2.87, suggests management expects continued outperformance, though actual results compared with analyst consensus will not be known until each future quarter is reported.