Walmart posted stronger-than-expected revenue and adjusted earnings for fiscal 2027 second quarter, but slower U.S. comparable sales growth drew most of the market’s attention, according to MSX Research Institute’s daily note on U.S. equities and RWA markets.
Revenue and adjusted EPS both beat consensus
MSX Research Institute said Walmart’s FY2027 Q2 total revenue reached $187.9 billion, up 5.9% from a year earlier and above the market consensus of $186.77 billion.
Adjusted earnings per share came in at $0.81, up 19% year over year and ahead of the $0.74 consensus estimate. On a GAAP basis, attributable net profit was $6.37 billion, down 9% year over year, moving in the opposite direction from the adjusted measure.
U.S. comparable sales growth slips to a more than six-year low
U.S. comparable sales growth was 2.6% in the quarter, below the market consensus of 3.5% and the lowest level in more than six years. The company said pharmacy price deflation created a drag of about 125 basis points.
MSX Research Institute said Walmart’s domestic comparable sales remain a key read on consumer demand in the United States. The note said transaction counts were steady while basket size declined, indicating that shoppers were still coming in but spending more cautiously.
Segment performance shows a split picture
By division, Walmart U.S. net sales were $125.2 billion, up 3.5% year over year. International business revenue was $35.2 billion, up 13%. Sam’s Club U.S. generated $25.7 billion in revenue, up 8.8%, while comparable sales excluding fuel rose 4.4%.
Higher-margin businesses continued to grow at a faster rate. Global e-commerce increased 23%, including 24% growth in the U.S. Global advertising revenue rose 38%, with Walmart Connect up 43%. U.S. third-party marketplace sales climbed 52%.
Adjusted operating income was $9.2 billion, up 17.4% year over year on a constant-currency basis, outpacing revenue growth.
Full-year guidance moves higher, but not enough to clear consensus
Walmart raised its full-year outlook across key metrics. Net sales growth guidance was lifted to 4.0%-5.0% from 3.5%-4.5%. Adjusted EPS guidance was raised to $2.80-$2.87 from the prior $2.75-$2.85 range. The company’s adjusted operating income growth guidance was set at 7.0%-8.5%.
Even after that increase, the top end of adjusted EPS guidance, $2.87, remained below the $2.90 market consensus. Walmart said it had started receiving tariff refunds during the quarter and would use those funds to help lower merchandise prices.
MSX view on the earnings report
MSX Research Institute said the tension in the report was not in the headline numbers, which broadly came in above expectations, but in the business mix and the forward read. Revenue, adjusted earnings and operating efficiency all improved. Adjusted operating income grew faster than sales, while advertising, third-party marketplace and e-commerce, all higher-margin businesses, posted double-digit or stronger gains.
At the same time, the drop in U.S. comparable sales growth to 2.6% brought the focus back to Walmart’s core retail engine. MSX said pharmacy price deflation explained about 125 basis points of the drag, while the rest pointed to changes in consumer behavior. The report also argued that Walmart’s full-year guidance was raised across the board, yet still fell short of consensus, showing that market expectations for the company’s growth had run ahead of management’s own outlook.
The next question, according to the note, is whether higher-margin non-retail businesses can keep expanding fast enough to offset slower growth in the core retail segment.
About MSX
MSX describes itself as an RWA trading platform focused on global market access. The company said it combines blockchain technology with a compliance framework and offers spot and derivatives trading in nearly 400 tokenized stocks and Pre-IPO assets. It also said its product lineup includes U.S. equity spot trading, perpetual contracts, crypto-to-crypto trading, Pre-IPO products and research services.
MSX added that the material is for research observation only and does not constitute investment advice, while warning that macro conditions and the U.S. stock market may remain highly volatile.