Walmart Q2 Earnings: E-commerce and Advertising Businesses Drive Revenue, Earnings, Beating Full-Year Guidance – Walmart (NYSE:WMT)

Walmart Inc WMT Shares of the company are trading higher on Thursday after the company reported strong second-quarter 2025 results and raised its full-year guidance.

The retailer reported adjusted earnings per share of $0.67 (+9.8% year-over-year), topping the consensus estimate of $0.64.

Sales were $169.34 billion, up 4.8% year over year or 5.0% (at constant currency), beating the consensus of $168.57 billion.

Gross margin increased 43 basis points, driven by improved results in Walmart US and Walmart International.

To read:Walmart Q2 Earnings Preview: This Safe Haven Action Is ‘One of the Few Beat-and-Rise Stories in Retail’

Operating income increased $0.6 billion, or 8.5%, and adjusted operating income increased 7.2% year over year, driven by higher gross margins, growth in membership revenue and lower e-commerce losses.

Global eCommerce sales grew 21%, driven by store pickup and delivery, as well as market growth. Global advertising business grew 26%, including 30% for Walmart Connect in the U.S.

Walmart U.S. store sales rose 4.2% year over year, excluding fuel, driven by higher transaction volume and sales across both stores and e-commerce channels.

Sam’s Club store sales rose 5.2% year over year, excluding fuel, but were led by food and health and wellness, driven by increased transactions and sales.

Doug McMillon, president and CEO, said: “Our newer businesses, such as marketplace, advertising and membership, also contribute by diversifying our earnings and strengthening the resilience of our business model.”

For the six months ended July 31, 2024, Walmart generated cash flow from operations of $16.4 billion and free cash flow of $5.9 billion. The quarter ended with cash and equivalents of $8.8 billion.

Conductivity: Walmart expects third-quarter adjusted earnings per share to be between $0.51 and $0.52, compared with the consensus of $0.55, and forecast sales to be between $164.58 billion and $166.17 billion, compared with the estimate of $167.11 billion.

For fiscal 2025, the large retailer raised its adjusted earnings per share forecast to $2.35-$2.43 (from $2.23-$2.37), compared with the consensus of $2.43.

Walmart raised its fiscal 2025 net sales growth forecast (at constant currency) to 3.75%-4.75% from 3.0%-4.0%.

In a separate statement, Walmart revealed that Bob Moritz, chairman emeritus PricewaterhouseCoopers (PwC)has been appointed to the company’s Board of Directors, with effect from today.

Price action: WMT shares were up 6.61% to $73.20 in pre-market trading, last checked on Thursday.

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