Walmart Q2 Earnings: E-commerce and Advertising Businesses Fuel Revenue And Profit Beat, Hikes Annual Guidance

Walmart Inc WMT shares are trading higher on Thursday after the company announced strong second-quarter 2025 results and raised full-year guidance.

The retailer reported adjusted EPS of $0.67 (+9.8% Y/Y), beating the consensus 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.

The gross margin rate was up 43 bps, aided by improvements across Walmart U.S. and Walmart International segments.

Read: Walmart Q2 Earnings Preview: This ‘Safe-Haven' Stock Is ‘One Of The Few Beat-And-Raise Stories In Retail'

Operating income was up $0.6 billion, or 8.5%, and adjusted operating income was up 7.2% Y/Y on higher gross margins, growth in membership income, and reduced eCommerce losses.

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

Walmart U.S same-store sales climbed by 4.2% year over year, excluding fuel, aided by strength in transaction counts and unit volumes across both stores and eCommerce channels.

At Sam's Club, same-store sales rose 5.2% year over year, excluding fuel, led by food and health and wellness categories, along with increased transactions and unit volumes.

Doug McMillon, President and CEO, said, "Our newer businesses like marketplace, advertising, and membership, are also contributing, diversifying our profits and reinforcing the resilience of our business model."

Walmart generated an operating cash flow of $16.4 billion and free cash flow of $5.9 billion in six months ended July 31, 2024. It ended the quarter with cash and equivalents of $8.8 billion.

Guidance: Walmart expects third-quarter adjusted EPS of $0.51 to $0.52 versus a consensus of $0.55, and its sales outlook is $164.58 billion-$166.17 billion vs. $167.11 billion estimate.

For FY25, the big box retailer raised its adjusted EPS outlook to $2.35-$2.43 (from $2.23-$2.37), vs. the consensus of $2.43.

Walmart boosted FY25 net sales (at constant currency) growth guidance to 3.75%-4.75% from 3.0%- 4.0%.

In a separate release, Walmart disclosed that Bob Moritz, retired Chairperson of PricewaterhouseCoopers (PwC), has been appointed to its Board of Directors, effective today.

Price Action: WMT shares are up 6.61% at $73.20 premarket at the last check on Thursday.

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