Q2 2026 Walmart Inc Earnings Call Transcript
Key Points
- Walmart Inc (WMT) reported a strong topline performance with sales up 5.6% in constant currency, driven by growth in transactions and units.
- E-commerce sales grew by 25% globally, with Walmart U.S. and Sam's Club U.S. leading at 26%, showcasing strong digital momentum.
- International sales increased by 10.5% in constant currency, led by significant growth in China, Walmex, and Flipkart.
- Sam's Club U.S. delivered a strong comp of 5.9%, primarily driven by unit growth, indicating robust performance in this segment.
- Walmart Inc (WMT) gained market share in the U.S. and internationally, with global advertising revenue growing by 46%.
- Adjusted operating income grew only 0.4% in constant currency, below expectations due to a 560 basis point headwind from general liability claims expenses in the U.S.
- The company faced increased costs from tariffs, impacting pricing decisions and leading to gradual cost increases in inventory replenishment.
- Lower markups than anticipated affected gross margins, with merchandise category mix remaining a headwind as grocery and health sales outpaced general merchandise.
- Higher claims expenses in the U.S. led to a 35 basis point deleverage in adjusted SG&A expenses, impacting overall profitability.
- The cost of resolving claims has risen, resulting in an additional $450 million accrual, which pressured operating income growth.
Greetings. Welcome to Walmart's second-quarter fiscal year 2026 earnings call. (Operator Instructions) Please note, this conference is being recorded.
I'll now turn the conference over to Steph Wissink, Senior Vice President, Investor Relations. Steph, you may begin.
Thank you. Welcome, everyone. We appreciate you joining us and your interest in Walmart. Joining me today from our home office in Bentonville are Walmart's CEO, Doug McMillon; and CFO, John David Rainey. Doug and John David will first share their views on the quarter, and then we'll open up the line for your questions.
During the question-and-answer portion, we will be joined by our segment CEOs, John Furner from Walmart U.S.; Kath McLay from Walmart International; and Chris Nicholas from Sam's Club. For additional detail on our results, including highlights by segment, please see our earnings release and accompanying presentation on our website.
We will make every effort to answer as many of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
