Walmart Raises FY27 Outlook Amid Strong Q2 Results but Shares Slip on Slowest U.S. Comparable Sales in Six Years

Walmart Inc. unveiled a stronger forecast for fiscal 2027 alongside robust second-quarter results, driven by gains in e-commerce, advertising, and membership revenues. Yet, the company’s shares declined sharply after it posted its slowest U.S. comparable sales growth in six years, prompting investor caution amid a mixed performance.

Q2 Highlights Spur Outlook Upgrade

On August 20, Walmart reported Q2 FY27 revenue of $187.9 billion, up 5.9% year-over-year (5.1% in constant currency). E-commerce sales surged 23% globally, while U.S. comp sales—excluding fuel—advanced 2.6%, despite an 80 basis point headwind from health and wellness trends. The company also delivered notable gains in advertising, with global ad revenue up 38% and U.S. ad growth driving much of the increase. Membership fee revenue climbed 17% globally, and gross profit rate rose 96 basis points, bolstered by tariff refunds. Operating income jumped 28.8%, or 17.4% on an adjusted constant currency basis, reflecting tariff refund impact partially offset by strategic price investments. GAAP EPS stood at $0.80, with adjusted EPS at $0.81. The company raised its Q3 net sales outlook to a 3.0%–3.75% increase and FY27 net sales to 4.0%–5.0%, with adjusted operating income projected to grow 7.0%–8.5% and adjusted EPS estimated between $2.80 and $2.87.

These results reflect solid momentum in key growth channels—particularly e-commerce and ad revenue—supporting bullish guidance for the remainder of the fiscal year.

Wall Street Caution as U.S. Sales Slow

Despite the upbeat guidance, the Associated Press reported that U.S. comparable sales growth in Q2 marked the slowest pace in six years, spurring a sharp stock decline. Shares plunged more than 8% following the release, as investors weighed signs of sluggish consumer demand.

Stock Reaction in Context

The stock decline occurred even as Walmart boosted its outlook, highlighting a disconnect between operational strength in digital and revenue forecasting, and investor concern over deteriorating in-store performance. Without attributing direct causation, the timing suggests the weak comp-sales figure played a key role in shaking confidence.

Looking Ahead

• Watch whether Walmart’s investments in e-commerce, advertising, and memberships can offset U.S. store weakness in upcoming quarters.
• Monitor consumer spending trends and health & wellness pressure points that weighed on Q2 comps.
• Track intraday and weekly share performance to assess whether the dip reflects overreaction or growing concerns.

As Walmart navigates a mixed-growth environment, its online and digital revenue streams continue to shine, even as in-store performance softens. For investors, how these trends evolve in Q3 and beyond will be critical in determining whether the stock rebound is imminent or prolonged caution prevails.