WMT US S&P 500NASDAQ-100DJIARussell 1000 Earnings call
Walmart (WMT) · Q2 2026 results and valuation
Share price: $125.67 · 2026-11-11
Walmart is an omnichannel retailer that sells a wide range of products, including groceries, general merchandise, and health and wellness items. The company operates physical stores and e-commerce platforms for customers in the United States, Mexico, Canada, and other international markets. Source: 10-K annual report (2026-03-13)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 20 Aug 2026 and 21 May 2026
Net income up 19.4% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
1 · Numbers
+19.4%
Net income vs Q1 2026
Outlook given
Net income 6.37B vs 5.33B
Revenue +5.7%
Against the same quarter last year (Q2 2025) it is −9.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.
Why Against the same quarter last year (−9.4%), net income fell because the net benefit from tariff refunds was partially offset by price investments in the quarter and the negative impact from the health and wellness business.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Similar to last call.
3 · What stood out
Walmart raised its fiscal year sales guidance to 4% to 5% from the previous range of 3.5% to 4.5%.
Valuation
Is Walmart undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.3% growth a year (3-year revenue growth), the model's fair value is $25.90 a share — the stock trades 385% above it. Today's price assumes 24.8% growth a year.
Current price
$125.67
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+24.8% for 10 yrs
Fair value / share
$25.90
Buy below
$19.42
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
The benefit from GLP-1 in FY '27 is expected to be roughly half that amount because script count growth is more than offset by price/mix headwinds.
Source quote
“In FY '27, the benefit from GLP-1 is expected to be roughly half that amount as script count growth is more than offset by price/mix headwinds.”
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Guidance
Walmart raised its fiscal year sales guidance to 4% to 5% from the previous range of 3.5% to 4.5%.
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Figure
Membership fee revenue reached an all-time high with growth of 17% as the company increased units and transactions.
Source quote
“We grew units and transactions and membership fee revenue was at an all-time high on growth of 17%.”
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Figure
Global e-commerce net sales grew 23%, continuing the momentum of the last several years.
Source quote
“Global e-commerce net sales grew 23%, continuing the strong momentum of the last several years.”
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Figure
The company was eligible for approximately $2.9 billion of tariff refunds, which amounts to about 0.5% of annual U.S. net sales.
Source quote
“As we shared with you in May, we were eligible for approximately $2.9 billion of tariff refunds, amounting to about 0.5% of annual U.S. net sales.”
4 more
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Guidance
Walmart is raising its guidance for the year because of strong top and bottom line growth.
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Guidance
Core retail business sales grew by 5% in constant currency, reaching the top end of guidance.
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Figure
Sparky users increased by 70% from last year and spend 40% more per order than non-Sparky users, indicating higher engagement and spending from those customers.
Source quote
“The number of customers using Sparky is up 70% from last year, and the customers and members who use Sparky for shopping spend 40% more per order than others who don't.”
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Guidance
Walmart raised its full-year sales and operating income growth guidance because the company's business model is becoming stronger and more durable.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“In closing, our teams continue to focus on what we do best, serving customers and members with everyday great value, exceptional convenience and speed, all while pushing our business model...”
“In grocery, sales increased mid-single digits with strong unit volume growth and continued market share gains, as I noted.”
“Global e-commerce net sales grew 23%, continuing the strong momentum of the last several years.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 187.94B | 177.75B | +5.7% | 177.40B | +5.9% |
| Gross profit | 49.13B | 44.69B | +9.9% | 44.63B | +10.1% |
| Operating income | 9.38B | 7.49B | +25.2% | 7.29B | +28.8% |
| Net income | 6.37B | 5.33B | +19.4% | 7.03B | −9.4% |
| EPS | 0.80 | 0.67 | +19.4% | 0.88 | −9.1% |
| P/E today 45.5 | 40.3 | 46.5 | −6.2 | 37.0 | +3.3 |
Topics
Most discussed now
- Walmart has taken a disciplined approach to investing these funds back into customer experience and price leadership, prioritizing…
- Fading Walmart's business model is only getting stronger and more durable, and this gives it confidence to raise its sales and...
- International constant currency sales increased nearly 8%, led by 9.7% growth in China.
- As you go through month by month in the last quarter, you can tell when fuel prices increase and got...
- If you look at the profit drivers of Walmart's business, almost half of the growth came from areas like membership,...
Faded since Q1 2026
- Fading Quarter adjusted operating income growth in constant currency of approximately 5% was in line with Walmart's guidance despite…
- Dropped More than half of Walmart's regional distribution centers are in various stages of being retrofitted.
- Dropped Walmart is also finding ways to help families stretch their dollars as outdoor summer activities get underway.
- Fading Comp sales, which were up 4.1% despite a 100 basis point headwind from maximum fair pricing legislation and pharmacy.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Other events · SEC 8-K
Walmart Inc. filed a Form 8-K on October 23, 2026, listing various notes due between 2028 and 2039 with interest rates ranging from 1.500% to 5.750%.
- Results of operations · SEC 8-K
Walmart Inc. will issue a press release and financial presentation on August 20, 2026, disclosing results of operations and cash flows for the periods ended July 31, 2026.
- Articles or bylaws amended; Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Walmart Inc. will issue a press release and financial presentation on May 21, 2026, disclosing results of operations and cash flows for the three months ended April 30, 2026.
- Other events · SEC 8-K
Walmart Inc. filed a Form 8-K on April 30, 2026, listing various debt instruments including notes due in 2026, 2028, 2029, 2030, 2031, 2034, 2035, and 2039.
- Other events · SEC 8-K
Suresh Kumar entered into a Rule 10b5-1 trading plan to sell up to 199,610 shares of common stock, with approximately 33,270 shares scheduled for sale each month starting June 29, 2026.
- Other events · SEC 8-K
C. Douglas McMillon entered into a Rule 10b5-1 trading plan to sell up to 155,328 shares, while Daniel J. Bartlett entered into a plan to sell $416,666.67 worth of stock monthly.
- Results of operations · SEC 8-K
Walmart Inc. will issue a press release and financial presentation on February 19, 2026, disclosing results of operations, cash flows, and financial condition for the fiscal year ended January 31, 2026.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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next year
extending the Scintilla platform to Sam's Club U.S.
Source quote
“We announced today that we're extending the Scintilla platform to Sam's Club U.S. next year, addressing one of the top requests from our suppliers.”
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second half
core comps in a similar range
Source quote
“We expect core comps in a similar range in the second half.”
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FY '27
benefit from GLP-1 is expected to be roughly half that amount
Source quote
“In FY '27, the benefit from GLP-1 is expected to be roughly half that amount as script count growth is more than offset by price/mix headwinds.”
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FY '27
headwind to total comp sales from deflation and brand to generic transfers
Source quote
“New, in FY '27, we cited a 100 basis points headwind to total comp sales from deflation and brand to generic transfers under the first year of maximum fair price regulation.”
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Q3
operating income growth on a constant currency basis is expected to grow 2% to 4%
Source quote
“Inclusive of planned investment of tariff refunds, Q3 operating income growth on a constant currency basis is expected to grow 2% to 4%.”