Walmart Raises 2027 Outlook After Strong Q2 Revenue Growth

Walmart Inc. reported second-quarter revenue of $187.9 billion, representing a 5.9% increase. This growth was primarily driven by non-traditional retail sectors, with global e-commerce sales rising 23%, advertising revenue increasing 38%, and membership revenue growing 17%.

The company's adjusted operating income grew by 17.4% in constant currency, while gross margins expanded by 96 basis points. Following these results, the retailer raised its fiscal year 2027 outlook, now projecting sales growth between 4% and 5% and adjusted operating income growth between 7% and 8.5%.

Despite the positive growth, the company faces headwinds from elevated fuel costs and a 6.7% year-over-year increase in inventory. Analysts indicate that the shift toward higher-margin digital and advertising revenue is reducing the company's reliance on low-margin merchandise sales.