Walmart 8-K
PositiveEarningsGuidance raised
Tariff refunds lifted gross profit and will fund Q3 price investments; Flipkart’s Big Billion Days shift to Q4 weighs on Q3 sales.
Filed 2026-08-20 06:59 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 FY27 results with Q3 guidance and a raised FY27 outlook. Revenue grew 5.9% and operating income 28.8%, with tariff refunds boosting gross profit; Walmart is directing remaining refunds toward price investments, so management advised assessing Q2 and Q3 together.
Key Figures
| Metric | Q2 FY27 | Q2 FY26 | Y/Y |
|---|---|---|---|
| Total revenues | $187.9B | $177.4B | +5.9% |
| Operating income | $9.38B | $7.29B | +28.8% |
| Net income attributable to Walmart | $6.37B | $7.03B | -9.4% |
| Diluted EPS attributable to Walmart | $0.80 | $0.88 | -9.1% |
| Non-GAAP adjusted EPS | $0.81 | $0.68 | +19.1% |
- Tariff refunds and improved business mix lifted gross profit, partly offset by price investments and higher fuel costs. Adjusted operating income in constant currency increased 17.4%.
- Six-month operating cash flow was $19.7B vs $18.4B; FCF was $5.53B vs $6.94B. FCF fell as capital expenditures rose $2.8B to $14.2B for omnichannel growth.
- Q2 share repurchases totaled $3.0B for 25.7M shares at an average $117.61 per share. Cash was $11.5B and total debt was $57.2B at 7/31/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net sales growth (constant currency) | Q3 FY27 | 3.0%-3.75% | — | Initiated |
| Adjusted operating income growth (constant currency) | Q3 FY27 | 2.0%-4.0% | — | Initiated |
| Adjusted EPS (non-GAAP) | Q3 FY27 | $0.62-$0.64 | — | Initiated |
| Net sales growth (constant currency) | FY27 | 4.0%-5.0% | 3.5%-4.5% | Raised |
| Adjusted operating income growth (constant currency) | FY27 | 7.0%-8.5% | 6.0%-8.0% | Raised |
| Adjusted interest, net (non-GAAP) | FY27 | Increase ≈$200M-$300M | Increase ≈$200M-$300M | Reaffirmed |
| Effective tax rate | FY27 | ≈23.5%-24.5% | ≈23.5%-24.5% | Reaffirmed |
| Adjusted EPS (non-GAAP) | FY27 | $2.80-$2.87 | $2.75-$2.85 | Raised |
| Capital expenditures | FY27 | ≈4.0% of net sales | ≈3.5% of net sales | Raised |
Q3 sales growth includes a headwind of over 100 bp from the timing shift of Flipkart’s Big Billion Days into Q4; the operating income outlook reflects tariff refunds being invested in customer experience and prices.
Investor Takeaways
- Watch Q3 results against the guidance, particularly the Flipkart timing headwind and how price investments affect operating income.
- FY27 results will show whether sales and adjusted operating income reach the raised ranges as Walmart reinvests tariff refunds.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3